Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 11, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AA | ||
Entity Registrant Name | ALCOA INC. | ||
Entity Central Index Key | 4,281 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,314,845,888 | ||
Entity Public Float | $ 14 |
Statement of Consolidated Opera
Statement of Consolidated Operations € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | |
Income Statement [Abstract] | |||
Sales (Q) | $ 22,534 | $ 23,906 | $ 23,032 |
Cost of goods sold (exclusive of expenses below) | 18,069 | 19,137 | 19,286 |
Selling, general administrative, and other expenses | 979 | 995 | 1,008 |
Research and development expenses | 238 | 218 | 192 |
Provision for depreciation, depletion, and amortization | 1,280 | 1,371 | 1,421 |
Impairment of goodwill (A & E) | 25 | 1,731 | |
Restructuring and other charges (D) | 1,195 | 1,168 | 782 |
Interest expense (V) | 498 | 473 | 453 |
Other expenses (income), net (O) | 2 | 47 | (25) |
Total costs and expenses | 22,286 | 23,409 | 24,848 |
Income (loss) before income taxes | 248 | 497 | (1,816) |
Provision for income taxes (T) | 445 | 320 | 428 |
Net (loss) income | (197) | 177 | (2,244) |
Less: Net income (loss) attributable to noncontrolling interests | 125 | (91) | 41 |
Consolidated net (loss) income attributable to Alcoa | (322) | 268 | (2,285) |
Amounts Attributable to Alcoa Common Shareholders (S): | |||
Net (loss) income | $ (391) | $ 247 | $ (2,287) |
Earnings per share: | |||
Basic | $ / shares | $ (0.31) | $ 0.21 | $ (2.14) |
Diluted | $ / shares | $ (0.31) | $ 0.21 | $ (2.14) |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net (loss) income | $ (197) | $ 177 | $ (2,244) |
Other comprehensive loss, net of tax (B): | |||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | (2) | (82) | 557 |
Foreign currency translation adjustments | (1,995) | (1,266) | (1,335) |
Net change in unrealized gains on available-for-sale securities | (5) | (2) | (1) |
Net change in unrecognized losses on cash flow hedges | 826 | 78 | 184 |
Total Other comprehensive loss, net of tax | (1,176) | (1,272) | (595) |
Comprehensive loss | (1,373) | (1,095) | (2,839) |
Alcoa [Member] | |||
Net (loss) income | (322) | 268 | (2,285) |
Other comprehensive loss, net of tax (B): | |||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | (10) | (69) | 531 |
Foreign currency translation adjustments | (1,566) | (1,025) | (968) |
Net change in unrealized gains on available-for-sale securities | (5) | (2) | (1) |
Net change in unrecognized losses on cash flow hedges | 827 | 78 | 181 |
Total Other comprehensive loss, net of tax | (754) | (1,018) | (257) |
Comprehensive loss | (1,076) | (750) | (2,542) |
Noncontrolling Interests [Member] | |||
Net (loss) income | 125 | (91) | 41 |
Other comprehensive loss, net of tax (B): | |||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 8 | (13) | 26 |
Foreign currency translation adjustments | (429) | (241) | (367) |
Net change in unrecognized losses on cash flow hedges | (1) | 3 | |
Total Other comprehensive loss, net of tax | (422) | (254) | (338) |
Comprehensive loss | $ (297) | $ (345) | $ (297) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents (X) | $ 1,919 | $ 1,877 |
Receivables from customers, less allowances of $13 in 2015 and $14 in 2014 (U) | 1,340 | 1,395 |
Other receivables (U) | 522 | 733 |
Inventories (G) | 3,442 | 3,082 |
Prepaid expenses and other current assets | 730 | 761 |
Total current assets | 7,953 | 7,848 |
Properties, plants, and equipment, net (H) | 14,815 | 16,426 |
Goodwill (A & E) | 5,401 | 5,247 |
Investments (I) | 1,685 | 1,944 |
Deferred income taxes (T) | 2,668 | 3,139 |
Other noncurrent assets (J) | 4,006 | 2,759 |
Total Assets | 36,528 | 37,363 |
Current liabilities: | ||
Short-term borrowings (K & X) | 38 | 54 |
Accounts payable, trade | 2,889 | 3,152 |
Accrued compensation and retirement costs | 850 | 937 |
Taxes, including income taxes | 239 | 265 |
Other current liabilities | 1,174 | 1,021 |
Long-term debt due within one year (K & X) | 21 | 29 |
Total current liabilities | 5,211 | 5,458 |
Long-term debt, less amount due within one year (K & X) | 9,044 | 8,769 |
Accrued pension benefits (W) | 3,298 | 3,291 |
Accrued other postretirement benefits (W) | 2,106 | 2,155 |
Other noncurrent liabilities and deferred credits (L) | 2,738 | 2,896 |
Total liabilities | $ 22,397 | $ 22,569 |
Contingencies and commitments (N) | ||
Alcoa shareholders' equity: | ||
Preferred stock (R) | $ 55 | $ 55 |
Mandatory convertible preferred stock (R) | 3 | 3 |
Common stock (R) | 1,391 | 1,304 |
Additional capital | 10,019 | 9,284 |
Retained earnings | 8,834 | 9,379 |
Treasury stock, at cost | (2,825) | (3,042) |
Accumulated other comprehensive loss (B) | (5,431) | (4,677) |
Total Alcoa shareholders' equity | 12,046 | 12,306 |
Noncontrolling interests (M) | 2,085 | 2,488 |
Total equity | 14,131 | 14,794 |
Total Liabilities and Equity | $ 36,528 | $ 37,363 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Receivables from customers, allowance | $ 13 | $ 14 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash from Operations | |||
Net (loss) income | $ (197) | $ 177 | $ (2,244) |
Adjustments to reconcile net (loss) income to cash from operations: | |||
Depreciation, depletion, and amortization | 1,280 | 1,372 | 1,422 |
Deferred income taxes (T) | 34 | (35) | 178 |
Equity income, net of dividends | 158 | 104 | 77 |
Impairment of goodwill (A & E) | 25 | 1,731 | |
Restructuring and other charges (D) | 1,195 | 1,168 | 782 |
Net gain from investing activities-asset sales (O) | (74) | (47) | (10) |
Net periodic pension benefit cost (W) | 485 | 423 | 516 |
Stock-based compensation (R) | 92 | 87 | 71 |
Excess tax benefits from stock-based payment arrangements | (9) | (9) | |
Other | (32) | 66 | 4 |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | |||
Decrease (increase) in receivables | 212 | (312) | (141) |
(Increase) decrease in inventories | (64) | (355) | 25 |
Decrease (increase) in prepaid expenses and other current assets | 46 | (25) | (9) |
(Decrease) increase in accounts payable, trade | (90) | 256 | 326 |
(Decrease) in accrued expenses | (437) | (451) | (418) |
Increase (decrease) in taxes, including income taxes | 25 | 7 | (43) |
Pension contributions (W) | (470) | (501) | (462) |
(Increase) in noncurrent assets | (370) | (42) | (156) |
(Decrease) increase in noncurrent liabilities | (227) | (209) | (71) |
Cash provided from operations | 1,582 | 1,674 | 1,578 |
Financing Activities | |||
Net change in short-term borrowings (original maturities of three months or less) (K) | (16) | (2) | 5 |
Additions to debt (original maturities greater than three months) (K) | 1,901 | 2,878 | 1,852 |
Debt issuance costs | (3) | (17) | (3) |
Payments on debt (original maturities greater than three months) (K) | (2,030) | (1,723) | (2,317) |
Proceeds from exercise of employee stock options (R) | 25 | 150 | 13 |
Excess tax benefits from stock-based payment arrangements | 9 | 9 | |
Issuance of mandatory convertible preferred stock (R) | 1,211 | ||
Dividends paid to shareholders | (223) | (161) | (132) |
Distributions to noncontrolling interests | (106) | (120) | (109) |
Contributions from noncontrolling interests (M) | 2 | 53 | 12 |
Acquisitions of noncontrolling interests (M & P) | (28) | ||
Cash (used for) provided from financing activities | (441) | 2,250 | (679) |
Investing Activities | |||
Capital expenditures | (1,180) | (1,219) | (1,193) |
Acquisitions, net of cash acquired (F & P) | 97 | (2,385) | |
Proceeds from the sale of assets and businesses (F) | 112 | 253 | 13 |
Additions to investments (I & N) | (134) | (195) | (293) |
Sales of investments (I) | 40 | 57 | |
Net change in restricted cash | (20) | (2) | 170 |
Other | 25 | 31 | 13 |
Cash used for investing activities | (1,060) | (3,460) | (1,290) |
Effect of exchange rate changes on cash and cash equivalents | (39) | (24) | (33) |
Net change in cash and cash equivalents | 42 | 440 | (424) |
Cash and cash equivalents at beginning of year | 1,877 | 1,437 | 1,861 |
Cash and cash equivalents at end of year | $ 1,919 | $ 1,877 | $ 1,437 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity - USD ($) $ in Millions | Total | Preferred Class A [Member] | Preferred Class B [Member] | Preferred Stock [Member] | Mandatory Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Preferred Class A [Member] | Retained Earnings [Member]Preferred Class B [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2012 | $ 16,523 | $ 55 | $ 1,178 | $ 7,560 | $ 11,689 | $ (3,881) | $ (3,402) | $ 3,324 | |||||
Net (loss) income | (2,244) | (2,285) | 41 | ||||||||||
Other comprehensive loss (B) | (595) | (257) | (338) | ||||||||||
Cash dividends declared: | |||||||||||||
Preferred share, value | (2) | (2) | |||||||||||
Common share, value | (130) | (130) | |||||||||||
Stock-based compensation (R) | 71 | 71 | |||||||||||
Common stock issued: compensation plans (R) | (3) | (122) | 119 | ||||||||||
Distributions | (109) | (109) | |||||||||||
Contributions (M) | 12 | 12 | |||||||||||
Other | (1) | (1) | |||||||||||
Balance at Dec. 31, 2013 | 13,522 | 55 | 1,178 | 7,509 | 9,272 | (3,762) | (3,659) | 2,929 | |||||
Net (loss) income | 177 | 268 | (91) | ||||||||||
Other comprehensive loss (B) | (1,272) | (1,018) | (254) | ||||||||||
Cash dividends declared: | |||||||||||||
Preferred share, value | $ (2) | $ (19) | $ (2) | $ (19) | |||||||||
Common share, value | (140) | (140) | |||||||||||
Stock-based compensation (R) | 87 | 87 | |||||||||||
Common stock issued: compensation plans (R) | 136 | (584) | 720 | ||||||||||
Issuance of mandatory convertible preferred stock (R) | 1,213 | $ 3 | 1,210 | ||||||||||
Issuance of common stock (F, K, & R) | 1,185 | 126 | 1,059 | ||||||||||
Distributions | (120) | (120) | |||||||||||
Contributions (M) | 53 | 53 | |||||||||||
Purchase of equity from noncontrolling interest (F) | (28) | 3 | (31) | ||||||||||
Other | 2 | 2 | |||||||||||
Balance at Dec. 31, 2014 | 14,794 | 55 | 3 | 1,304 | 9,284 | 9,379 | (3,042) | (4,677) | 2,488 | ||||
Net (loss) income | (197) | (322) | 125 | ||||||||||
Other comprehensive loss (B) | (1,176) | (754) | (422) | ||||||||||
Cash dividends declared: | |||||||||||||
Preferred share, value | $ (2) | $ (67) | $ (2) | $ (67) | |||||||||
Common share, value | (154) | (154) | |||||||||||
Equity option on convertible notes (F) | 55 | 55 | |||||||||||
Stock-based compensation (R) | 92 | 92 | |||||||||||
Common stock issued: compensation plans (R) | 22 | (195) | 217 | ||||||||||
Issuance of common stock (F, K, & R) | 870 | 87 | 783 | ||||||||||
Distributions | (106) | (106) | |||||||||||
Contributions (M) | 2 | 2 | |||||||||||
Other | (2) | (2) | |||||||||||
Balance at Dec. 31, 2015 | $ 14,131 | $ 55 | $ 3 | $ 1,391 | $ 10,019 | $ 8,834 | $ (2,825) | $ (5,431) | $ 2,085 |
Statement of Changes in Consol8
Statement of Changes in Consolidated Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Preferred, dividends per share | $ 3.75 | |||
Common stock, dividends per share | $ 0.03 | $ 0.12 | $ 0.12 | $ 0.12 |
Preferred Class A [Member] | ||||
Preferred, dividends per share | 3.75 | 3.75 | ||
Preferred Class B [Member] | ||||
Preferred, dividends per share | $ 26.8750 | $ 7.53993 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | A. Summary of Significant Accounting Policies Basis of Presentation. Principles of Consolidation. Management also evaluates whether an Alcoa entity or interest is a variable interest entity and whether Alcoa is the primary beneficiary. Consolidation is required if both of these criteria are met. Alcoa does not have any variable interest entities requiring consolidation. Related Party Transactions. Cash Equivalents. Inventory Valuation. Properties, Plants, and Equipment. Segment Structures Machinery and equipment Alumina: Alumina refining 30 27 Bauxite mining 34 17 Primary Metals: Aluminum smelting 36 22 Power generation 31 22 Global Rolled Products 31 21 Engineered Products and Solutions 29 18 Transportation and Construction Solutions 28 19 Gains or losses from the sale of assets are generally recorded in other income or expenses (see policy below for assets classified as held for sale and discontinued operations). Repairs and maintenance are charged to expense as incurred. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable. Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the operations related to the assets (asset group) to their carrying amount. An impairment loss would be recognized when the carrying amount of the assets (asset group) exceeds the estimated undiscounted net cash flows. The amount of the impairment loss to be recorded is calculated as the excess of the carrying value of the assets (asset group) over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow (DCF) model. The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of assets also require significant judgments. Mineral Rights. Deferred Mining Costs. Goodwill and Other Intangible Assets. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Alcoa has ten reporting units, of which four are included in the Engineered Products and Solutions segment and three are included in the Transportation and Construction Solutions segment. The remaining three reporting units are the Alumina segment, the Primary Metals segment (all goodwill was impaired in 2013—see below), and the Global Rolled Products segment. More than 70% of Alcoa’s total goodwill is allocated to two reporting units as follows: Alcoa Fastening Systems and Rings (AFSR) ($2,232) and Alcoa Power and Propulsion (APP) ($1,695) businesses, both of which are included in the Engineered Products and Solutions segment. These amounts include an allocation of Corporate’s goodwill. In November 2014, Alcoa acquired Firth Rixson (see Note F), and, as a result recognized $1,801 in goodwill. This amount was allocated between the AFSR and Alcoa Forgings and Extrusion reporting units, which is part of the Engineered Products and Solutions segment. In March and July 2015, Alcoa acquired TITAL and RTI, respectively, (see Note F) and recognized $118 and $240, respectively, in goodwill. The goodwill amount related to TITAL was allocated to the APP reporting unit and the amount related to RTI was allocated to Alcoa Titanium and Engineered Products, a new Alcoa reporting unit that consists solely of the acquired RTI business and is part of the Engineered Products and Solutions segment. In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the existing two-step quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform the qualitative assessment or proceeds directly to the two-step quantitative impairment test. Alcoa’s policy for its annual review of goodwill is to perform the qualitative assessment for all reporting units not subjected directly to the two-step quantitative impairment test. Generally, management will proceed directly to the two-step quantitative impairment test for two to three reporting units (based on facts and circumstances) during each annual review of goodwill. This policy will result in each of the nine reporting units with goodwill being subjected to the two-step quantitative impairment test at least once during every three-year period. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators above). These factors are then classified by the type of impact they would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions. Additionally, an assessment of the level of impact that a particular factor would have on the estimated fair value is determined using high, medium, and low weighting. Furthermore, management considers the results of the most recent two-step quantitative impairment test completed for a reporting unit and compares the weighted average cost of capital (WACC) between the current and prior years for each reporting unit. During the 2015 annual review of goodwill, management performed the qualitative assessment for seven reporting units, the Alumina segment, the four reporting units in the Engineered Products and Solutions segment, including AFSR and APP, and two reporting units in the Transportation and Construction Solutions segment. Management concluded that it was not more likely than not that the estimated fair values of the seven reporting units were less than their carrying values. As such, no further analysis was required. Under the two-step quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. Alcoa uses a DCF model to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including markets and market share, sales volumes and prices, production costs, tax rates, capital spending, discount rate, and working capital changes. Most of these assumptions vary significantly among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years. The betas used in calculating the individual reporting units’ WACC rate are estimated for each business with the assistance of valuation experts. In the event the estimated fair value of a reporting unit per the DCF model is less than the carrying value, additional analysis would be required. The additional analysis would compare the carrying amount of the reporting unit’s goodwill with the implied fair value of that goodwill, which may involve the use of valuation experts. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the fair value amounts assigned to all of the assets and liabilities of that unit as if the reporting unit was acquired in a business combination and the fair value of the reporting unit represented the purchase price. If the carrying value of goodwill exceeds its implied fair value, an impairment loss equal to such excess would be recognized, which could significantly and adversely impact reported results of operations and shareholders’ equity. During the 2015 annual review of goodwill, management proceeded directly to the two-step quantitative impairment test for two reporting units as follows: Global Rolled Products segment and the soft alloys extrusion business in Brazil (hereafter “SAE”), which is included in the Transportation and Construction Solutions segment. The estimated fair value of the Global Rolled Products segment was substantially in excess of its respective carrying value, resulting in no impairment. For SAE, the estimated fair value as determined by the DCF model was lower than the associated carrying value. As a result, management performed the second step of the impairment analysis in order to determine the implied fair value of the SAE reporting unit’s goodwill. The results of the second-step analysis showed that the implied fair value of the goodwill was zero. Therefore, in the fourth quarter of 2015, Alcoa recorded a goodwill impairment of $25. The impairment of the SAE goodwill resulted from headwinds from the recent downturn in the Brazilian economy and the continued erosion of gross margin despite the execution of cost reduction strategies. As a result of the goodwill impairment, there is no goodwill remaining for the SAE reporting unit. Goodwill impairment tests in prior years indicated that goodwill was not impaired for any of the Company’s reporting units, except for the Primary Metals segment in 2013 (see below), and there were no triggering events since that time that necessitated an impairment test. In 2013, for Primary Metals, the estimated fair value as determined by the DCF model was lower than the associated carrying value. As a result, management performed the second step of the impairment analysis in order to determine the implied fair value of Primary Metals’ goodwill. The results of the second-step analysis showed that the implied fair value of goodwill was zero. Therefore, in the fourth quarter of 2013, Alcoa recorded a goodwill impairment of $1,731 ($1,719 after noncontrolling interest). As a result of the goodwill impairment, there is no goodwill remaining for the Primary Metals reporting unit. The impairment of Primary Metals’ goodwill resulted from several causes: the prolonged economic downturn; a disconnect between industry fundamentals and pricing that has resulted in lower metal prices; and the increased cost of alumina, a key raw material, resulting from expansion of the Alumina Price Index throughout the industry. All of these factors, exacerbated by increases in discount rates, continue to place significant downward pressure on metal prices and operating margins, and the resulting estimated fair value, of the Primary Metals business. As a result, management decreased the near-term and long-term estimates of the operating results and cash flows utilized in assessing Primary Metals’ goodwill for impairment. The valuation of goodwill for the second step of the goodwill impairment analysis is considered a level 3 fair value measurement, which means that the valuation of the assets and liabilities reflect management’s own judgments regarding the assumptions market participants would use in determining the fair value of the assets and liabilities. Intangible assets with indefinite useful lives are not amortized while intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Segment Software Other intangible assets Alumina 7 15 Primary Metals 6 37 Global Rolled Products 9 14 Engineered Products and Solutions 7 32 Transportation and Construction Solutions 8 23 Equity Investments. Revenue Recognition. Alcoa periodically enters into long-term supply contracts with alumina and aluminum customers and receives advance payments for product to be delivered in future periods. These advance payments are recorded as deferred revenue, and revenue is recognized as shipments are made and title, ownership, and risk of loss pass to the customer during the term of the contracts. Deferred revenue is included in Other current liabilities and Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet. Environmental Matters. Litigation Matters. Asset Retirement Obligations. Certain conditional asset retirement obligations (CAROs) related to alumina refineries, aluminum smelters, and fabrication facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. A CARO is a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within Alcoa’s control. Such uncertainties exist as a result of the perpetual nature of the structures, maintenance and upgrade programs, and other factors. At the date a reasonable estimate of the ultimate settlement date can be made, Alcoa would record an ARO for the removal, treatment, transportation, storage, and/or disposal of various regulated assets and hazardous materials such as asbestos, underground and aboveground storage tanks, polychlorinated biphenyls (PCBs), various process residuals, solid wastes, electronic equipment waste, and various other materials. Such amounts may be material to the Consolidated Financial Statements in the period in which they are recorded. Income Taxes. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Alcoa’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitation has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. Stock-Based Compensation. Most plan participants can choose whether to receive their award in the form of stock options, stock awards, or a combination of both. This choice is made before the grant is issued and is irrevocable. Derivatives and Hedging. Alcoa accounts for interest rate swaps related to its existing long-term debt and hedges of firm customer commitments for aluminum as fair value hedges. As a result, the fair values of the derivatives and changes in the fair values of the underlying hedged items are reported in other current and noncurrent assets and liabilities in the Consolidated Balance Sheet. Changes in the fair values of these derivatives and underlying hedged items generally offset and are recorded each period in sales or interest expense, consistent with the underlying hedged item. Alcoa accounts for hedges of foreign currency exposures and certain forecasted transactions as cash flow hedges. The fair values of the derivatives are recorded in other current and noncurrent assets and liabilities in the Consolidated Balance Sheet. The effective portions of the changes in the fair values of these derivatives are recorded in other comprehensive income and are reclassified to sales, cost of goods sold, or other income or expense in the period in which earnings are impacted by the hedged items or in the period that the transaction no longer qualifies as a cash flow hedge. These contracts cover the same periods as known or expected exposures, generally not exceeding five years. If no hedging relationship is designated, the derivative is marked to market through earnings. Cash flows from derivatives are recognized in the Statement of Consolidated Cash Flows in a manner consistent with the underlying transactions. Foreign Currency. Acquisitions. Discontinued Operations and Assets Held For Sale. For businesses classified as discontinued operations, the balance sheet amounts and results of operations are reclassified from their historical presentation to assets and liabilities of operations held for sale on the Consolidated Balance Sheet and to discontinued operations on the Statement of Consolidated Operations, respectively, for all periods presented. The gains or losses associated with these divested businesses are recorded in discontinued operations on the Statement of Consolidated Operations. The Statement of Consolidated Cash Flows is also reclassified for assets and liabilities of operations held for sale and discontinued operations for all periods presented. Additionally, segment information does not include the assets or operating results of businesses classified as discontinued operations for all periods presented. These businesses are expected to be disposed of within one year. For businesses classified as held for sale that do not qualify for discontinued operations treatment, the balance sheet and cash flow amounts are reclassified from their historical presentation to assets and liabilities of operations held for sale for all periods presented. The results of operations continue to be reported in continuing operations. The gains or losses associated with these divested businesses are recorded in restructuring and other charges on the Statement of Consolidated Operations. The segment information includes the assets and operating results of businesses classified as held for sale for all periods presented. Management expects that Alcoa will have continuing involvement with these businesses following their divestiture, primarily in the form of equity participation, or ongoing aluminum or other significant supply contracts. Recently Adopted Accounting Guidance. In September 2015, the FASB issued changes to the accounting for measurement-period adjustments related to business combinations. Currently, an acquiring entity is required to retrospectively adjust the balance sheet amounts of the acquiree recognized at the acquisition date with a corresponding adjustment to goodwill during the measurement period, as well as revise comparative information for prior periods presented within financial statements as needed, including revising income effects, such as depreciation and amortization, as a result of changes made to the balance sheet amounts of the acquiree. Such adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of additional assets or liabilities. The measurement period is the period after the acquisition date during which the acquirer may adjust the balance sheet amounts recognized for a business combination (generally up to one year from the date of acquisition). The changes eliminate the requirement to make such retrospective adjustments, and, instead require the acquiring entity to record these adjustments in the reporting period they are determined. Additionally, the changes require the acquiring entity to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period income by line item that would have been recorded in previous reporting periods if the adjustment to the balance sheet amounts had been recognized as of the acquisition date. These changes were to become effective for Alcoa on January 1, 2016; however, early adoption is permitted. As such, Alcoa elected to early adopt these changes upon issuance and applied the new requirements to three acquisitions (see Note F). In 2015, Alcoa recognized adjustments to the original balance sheet amounts of these three acquisitions, resulting in the recognition of amounts in current period operations that would have been recorded in previous reporting periods had the adjustments to the balance sheet amounts been recognized as of the respective acquisition date. Such amounts recorded in current period operations were not material to the Statement of Consolidated Operations for the year ended December 31, 2015. In November 2015, the FASB issued changes to the balance sheet classification of deferred taxes, which Alcoa immediately adopted. These changes simplify the presentation of deferred income taxes by requiring all deferred income tax assets and liabilities to be classified as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by these changes. As such, all deferred income tax assets and liabilities were classified in the Deferred income taxes and Other noncurrent liabilities and deferred credits, respectively, line items on the December 31, 2015 Consolidated Balance Sheet. Additionally, management elected to update the December 31, 2014 Consolidated Balance Sheet for these changes for comparative purposes. As a result $421 of current deferred income tax assets (previously reported in Prepaid expenses and other current assets) and $83 of current deferred income tax liabilities (previously reported in Taxes, including income taxes) were reclassified to the aforementioned noncurrent asset ($385) and liability ($47) line items on the December 31, 2014 Consolidated Balance Sheet. Recently Issued Accounting Guidance. In February 2015, the FASB issued changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. These changes become effective for Alcoa on January 1, 2016. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. In April 2015, the FASB issued changes to the presentation of debt issuance costs. Currently, such costs are required to be presented as a deferred asset in an entity’s balance sheet and amortized into interest expense over the term of the related debt instrument. The changes require that debt issuance costs be presented in an entity’s balance sheet as a direct deduction from the carrying value of the related debt liability. The amortization of debt issuance costs remains unchanged. These changes become effective for Alcoa on January 1, 2016. In August 2015, the FASB issued an update to these changes based on an announcement of the staff of the U.S. Securities and Exchange Commission. This change provides an exception to the April 2015 FASB changes allowing debt issuance costs related to line-of-credit arrangements to continue to be presented as an asset regardless of whether there are any outstanding borrowings under such arrangement. This additional change also becomes effective for Alcoa on January 1, 2016. Management has determined that the adoption of all of these changes will result in a decrease of $58 to both Other noncurrent assets and Long-term debt, less amount due within one year on the accompanying Consolidated Balance Sheet. In July 2015, the FASB issued changes to the subsequent measurement of inventory. Currently, an entity is required to measure its inventory at the lower of cost or market, whereby market can be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The changes require that inventory be measured at the lower of cost and net realizable value, thereby eliminating the use of the other two market methodologies. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. These changes do not apply to inventories measured using LIFO (last-in, first-out) or the retail inventory method. Currently, Alcoa applies the net realizable value market option to measure non-LIFO inventories at the lower of cost or market. These changes become effective for Alcoa on January 1, 2017. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements. In May 2014, the FASB issued changes to the recognition of revenue from contracts with customers. These changes created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersede virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB deferred the effective date by one year, making these changes effective for Alcoa on January 1, 2018. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. In August 2014, the FASB issued changes to the disclosure of uncertainties about an entity’s ability to continue as a going concern. Under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Even if an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. Because there is no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related note disclosures, there is diversity in practice whether, when, and how an entity discloses the relevant conditions and events in its financial statements. As a result, these changes require an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued. Substantial doubt is defined as an indication that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that financial statements are issued. If management has concluded that substantial doubt exists, then the following disclosures should be made in the financial statements: (i) principal conditions or events that raised the substantial doubt, (ii) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, (iii) management’s plans that alleviated the initial substantial doubt or, if substantial doubt was not alleviated, management’s plans that are intended to at least mitigate the conditions or events that raise substantial doubt, and (iv) if the latter in (iii) is disclosed, an explicit statement that there is substantial doubt about the entity’s ability to continue as a going concern. These changes become effective for Alcoa for the 2016 annual period. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements. Subsequent to adoption, this guidance will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the Consolidated Financial Statements in a given reporting period. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | B. Accumulated Other Comprehensive Loss The following table details the activity of the four components that comprise Accumulated other comprehensive loss for both Alcoa’s shareholders and noncontrolling interests: Alcoa Noncontrolling Interests 2015 2014 2013 2015 2014 2013 Pension and other postretirement benefits (W) Balance at beginning of period $ (3,601 ) $ (3,532 ) $ (4,063 ) $ (64 ) $ (51 ) $ (77 ) Other comprehensive (loss) income: Unrecognized net actuarial loss and prior service cost/benefit (478 ) (492 ) 281 5 (22 ) 28 Tax benefit (expense) 170 167 (88 ) (1 ) 7 (9 ) Total Other comprehensive (loss) income before reclassifications, net of tax (308 ) (325 ) 193 4 (15 ) 19 Amortization of net actuarial loss and prior service cost/benefit (1) 458 394 520 6 3 11 Tax expense (2) (160 ) (138 ) (182 ) (2 ) (1 ) (4 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (8) 298 256 338 4 2 7 Total Other comprehensive (loss) income (10 ) (69 ) 531 8 (13 ) 26 Balance at end of period $ (3,611 ) $ (3,601 ) $ (3,532 ) $ (56 ) $ (64 ) $ (51 ) Foreign currency translation Balance at beginning of period $ (846 ) $ 179 $ 1,147 $ (351 ) $ (110 ) $ 257 Other comprehensive loss (3) (1,566 ) (1,025 ) (968 ) (429 ) (241 ) (367 ) Balance at end of period $ (2,412 ) $ (846 ) $ 179 $ (780 ) $ (351 ) $ (110 ) Available-for-sale securities Balance at beginning of period $ - $ 2 $ 3 $ - $ - $ - Other comprehensive loss (4) (5 ) (2 ) (1 ) - - - Balance at end of period $ (5 ) $ - $ 2 $ - $ - $ - Cash flow hedges (X) Balance at beginning of period $ (230 ) $ (308 ) $ (489 ) $ (2 ) $ (2 ) $ (5 ) Other comprehensive income (loss): Net change from periodic revaluations 1,138 78 205 (1 ) - 4 Tax expense (340 ) (21 ) (43 ) - - (1 ) Total Other comprehensive income before reclassifications, net of tax 798 57 162 (1 ) - 3 Net amount reclassified to earnings: Aluminum contracts (5) 21 27 18 - - - Energy contracts (6) 6 - - - - - Foreign exchange contracts (5) 5 (3 ) 2 - - - Interest rate contracts (7) 1 1 2 - - - Nickel contracts (6) 2 - - - - - Sub-total 35 25 22 - - - Tax (expense) (2) (6 ) (4 ) (3 ) - - - Total amount reclassified from Accumulated other comprehensive loss, net of tax (8) 29 21 19 - - - Total Other comprehensive income (loss) 827 78 181 (1 ) - 3 Balance at end of period $ 597 $ (230 ) $ (308 ) $ (3 ) $ (2 ) $ (2 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note W). (2) These amounts were included in Provision for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (4) 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) These amounts were included in Cost of goods sold on the accompanying Statement of Consolidated Operations. (7) These amounts were included in Interest expense on the accompanying Statement of Consolidated Operations. (8) 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 7. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | C. Asset Retirement Obligations Alcoa has recorded AROs related to legal obligations associated with the normal operations of bauxite mining, alumina refining, and aluminum smelting facilities. These AROs consist primarily of costs associated with spent pot lining disposal, closure of bauxite residue areas, mine reclamation, and landfill closure. Alcoa also recognizes AROs for any significant lease restoration obligation, if required by a lease agreement, and for the disposal of regulated waste materials related to the demolition of certain power facilities. In addition to AROs, certain CAROs related to alumina refineries, aluminum smelters, and fabrication facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. Such uncertainties exist as a result of the perpetual nature of the structures, maintenance and upgrade programs, and other factors. At the date a reasonable estimate of the ultimate settlement date can be made (e.g., planned demolition), Alcoa would record an ARO for the removal, treatment, transportation, storage, and/or disposal of various regulated assets and hazardous materials such as asbestos, underground and aboveground storage tanks, PCBs, various process residuals, solid wastes, electronic equipment waste, and various other materials. If Alcoa was required to demolish all such structures immediately, the estimated CARO as of December 31, 2015 ranges from less than $1 to $46 per structure (156 structures) in today’s dollars. The following table details the carrying value of recorded AROs by major category (of which $97 and $76 was classified as a current liability as of December 31, 2015 and 2014, respectively): December 31, 2015 2014 Spent pot lining disposal $ 141 $ 170 Closure of bauxite residue areas 165 178 Mine reclamation 191 167 Demolition* 117 114 Landfill closure 30 31 Other 4 3 $ 648 $ 663 * In 2015 and 2014, AROs were recorded as a result of management’s decision to permanently shut down and demolish certain structures (see Note D). The following table details the changes in the total carrying value of recorded AROs: December 31, 2015 2014 Balance at beginning of year $ 663 $ 629 Accretion expense 19 25 Payments (74 ) (84 ) Liabilities incurred 96 144 Divestitures* - (20 ) Foreign currency translation and other (56 ) (31 ) Balance at end of year $ 648 $ 663 * In 2014, this amount relates to the sale of an interest in a bauxite mine and alumina refinery in Jamaica and a smelter in the United States (see Note F). |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | D. Restructuring and Other Charges Restructuring and other charges for each year in the three-year period ended December 31, 2015 were comprised of the following: 2015 2014 2013 Asset impairments $ 335 $ 406 $ 116 Layoff costs 299 259 201 Legal matters in Italy (N) 201 - - Net loss on divestitures of businesses (F) 161 332 - Resolution of a legal matter (N) - - 391 Other 213 199 82 Reversals of previously recorded layoff and other exit costs (14 ) (28 ) (8 ) Restructuring and other charges $ 1,195 $ 1,168 $ 782 Layoff costs were recorded based on approved detailed action plans submitted by the operating locations that specified positions to be eliminated, benefits to be paid under existing severance plans, union contracts or statutory requirements, and the expected timetable for completion of the plans. 2015 Actions. During 2015, management initiated various alumina refining and aluminum smelting capacity curtailments and/or closures. The curtailments were composed of the remaining capacity at all of the following: the São Luís smelter in Brazil (74,000 metric-tons-per-year); the Suriname refinery (1,330,000 metric-tons-per-year); the Point Comfort, TX refinery (2,010,000 metric-tons-per-year); and the Wenatchee, WA smelter (143,000 metric-tons-per-year). All of the curtailments were completed in 2015 except for 1,635,000 metric-tons-per-year at the Point Comfort refinery, which is expected to be completed by the end of June 2016. The permanent closures were composed of the capacity at the Warrick, IN smelter (269,000 metric-tons-per-year) (includes the closure of a related coal mine) and the infrastructure of the Massena East, NY smelter (potlines were previously shut down in both 2013 and 2014—see 2013 Actions and 2014 Actions below), as the modernization of this smelter is no longer being pursued. The shutdown of the Warrick smelter is expected to be completed by the end of March 2016. The decisions on the above actions were part of a separate 12-month review in refining (2,800,000 metric-tons-per-year) and smelting (500,000 metric-tons-per-year) capacity initiated by management in March 2015 for possible curtailment (partial or full), permanent closure or divestiture. While many factors contributed to each decision, in general, these actions were initiated to maintain competitiveness amid prevailing market conditions for both alumina and aluminum. Demolition and remediation activities related to the Warrick smelter and the Massena East location will begin in 2016 and are expected to be completed by the end of 2020. Separate from the actions initiated under the reviews described above, in mid-2015, management approved the permanent shutdown and demolition of the Poços de Caldas smelter (capacity of 96,000 metric-tons-per-year) in Brazil and the Anglesea power station (includes the closure of a related coal mine) in Australia. The entire capacity at Poços de Caldas had been temporarily idled since May 2014 and the Anglesea power station was shut down at the end of August 2015. Demolition and remediation activities related to the Poços de Caldas smelter and the Anglesea power station began in late 2015 and are expected to be completed by the end of 2026 and 2020, respectively. The decision on the Poços de Caldas smelter was due to management’s conclusion that the smelter was no longer competitive as a result of challenging global market conditions for primary aluminum, which led to the initial curtailment, that have not dissipated and higher costs. For the Anglesea power station, the decision was made because a sale process did not result in a sale and there would have been imminent operating costs and financial constraints related to this site in the remainder of 2015 and beyond, including significant costs to source coal from available resources, necessary maintenance costs, and a depressed outlook for forward electricity prices. The Anglesea power station previously supplied approximately 40 percent of the power needs for the Point Henry smelter, which was closed in August 2014 (see 2014 Actions below). In 2015, costs related to the shutdown and curtailment actions included asset impairments of $217, representing the write-off of the remaining book value of all related properties, plants, and equipment; $156 for the layoff of approximately 3,100 employees (1,800 in the Primary Metals segment and 1,300 in the Alumina segment), including $30 in pension costs (see Note W); accelerated depreciation of $84 related to certain facilities as they continued to operate during 2015; and $227 in other exit costs. Additionally in 2015, remaining inventories, mostly operating supplies and raw materials, were written down to their net realizable value, resulting in a charge of $90 ($43 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 $227 represent $76 in asset retirement obligations and $86 in environmental remediation, both of which were triggered by the decisions to permanently shut down and demolish the aforementioned structures in the United States, Brazil, and Australia (includes the rehabilitation of a related coal mine in each of Australia and the United States), and $65 in supplier and customer contract-related costs. As of December 31, 2015, approximately 1,500 of the 5,200 employees were separated. The remaining separations for 2015 restructuring programs are expected to be completed by the end of 2016. In 2015, cash payments of $42 were made against layoff reserves related to 2015 restructuring programs. 2014 Actions. In early 2014, management approved the permanent shutdown and demolition of the remaining capacity (84,000 metric-tons-per-year) at the Massena East, NY smelter 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 March 2014 and the Point Henry smelter was fully shut down in August 2014. Demolition and remediation activities related to both the Massena East and Point Henry smelters began in late 2014 and are expected to be completed by the end of 2020 and 2018, respectively. The decisions on the Massena East and Point Henry smelters were part of a 15-month review of 460,000 metric tons of smelting capacity initiated by management in May 2013 (see 2013 Actions below) 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 had 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 were completed by the end of May 2014. As a result of these curtailments, 200,000 metric-tons-per-year of production at the Poços de Caldas refinery was reduced by the end of June 2014. Also in early 2014, 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 had a combined can sheet capacity of 200,000 metric-tons-per-year and were closed by the end of 2014. Demolition and remediation activities related to the two rolling mills began in mid-2015 and are expected to be completed by the end of 2018. Additionally, in August 2014, management approved the permanent shutdown and demolition of the capacity (150,000 metric-tons-per-year) at the Portovesme smelter in Italy, which had been idle since November 2012. This decision was made because the fundamental reasons that made the Portovesme smelter uncompetitive remained unchanged, including the lack of a viable long-term power solution. Demolition and remediation activities related to the Portovesme smelter will begin in 2016 and are expected to be completed by the end of 2020 (delayed due to discussions with the Italian government and other stakeholders). In 2014, costs related to the shutdown and curtailment actions included $208 for the layoff of approximately 1,790 employees (1,210 in the Primary Metals segment, 470 in the Global Rolled Products segment, 80 in the Alumina segment, and 30 in Corporate), including $26 in pension costs (see Note W); accelerated depreciation of $204 related to the three facilities in Australia as they continued to operate during 2014; asset impairments of $166 representing the write-off of the remaining book value of all related properties, plants, and equipment; and $183 in other exit costs. Additionally in 2014, remaining inventories, mostly operating supplies and raw materials, were written down to their net realizable value, resulting in a charge of $67 ($47 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 $183 represent $95 in asset retirement obligations and $42 in environmental remediation, both of which were triggered by the decisions to permanently shut down and demolish the aforementioned structures in Australia, Italy, and the United States, and $46 in other related costs, including supplier and customer contract-related costs. As of December 31, 2015, approximately 2,500 of the 2,870 employees (previously 2,910) were separated. The total number of employees associated with 2014 restructuring programs was updated to reflect employees, who were initially identified for separation, accepting other positions within Alcoa and natural attrition. The remaining separations for 2014 restructuring programs are expected to be completed by the end of 2016. In 2015 and 2014, cash payments of $62 and $141, respectively, were made against layoff reserves related to 2014 restructuring programs. 2013 Actions. In May 2013, management approved the permanent shutdown and demolition of two potlines (capacity of 105,000 metric-tons-per-year) that utilize Soderberg technology at the Baie Comeau smelter in Québec, Canada (remaining capacity of 280,000 metric-tons-per-year composed of two prebake potlines) and the full capacity (44,000 metric-tons-per-year) at the Fusina smelter in Italy. Additionally, in August 2013, management approved the permanent shutdown and demolition of one potline (capacity of 41,000 metric-tons-per-year) that utilizes Soderberg technology at the Massena East, NY smelter (remaining capacity of 84,000 metric-tons-per-year composed of two Soderberg potlines). The aforementioned Soderberg lines at Baie Comeau and Massena East were fully shut down by the end of September 2013 while the Fusina smelter was previously temporarily idled in 2010. Demolition and remediation activities related to all three facilities began in late 2013 and are expected to be completed by the end of 2016 for Massena East and by the end of 2017 for both Baie Comeau and Fusina. The decisions on the Soderberg lines for Baie Comeau and Massena East were part of a 15-month review of 460,000 metric tons of smelting capacity initiated by management in May 2013 for possible curtailment, while the decision on the Fusina smelter was in addition to the capacity being reviewed. Factors leading to all three decisions were in general focused on achieving sustained competitiveness and included, among others: lack of an economically viable, long-term power solution (Italy); changed market fundamentals; other existing idle capacity; and restart costs. In 2013, exit costs related to the shutdown actions included $114 for the layoff of approximately 550 employees (Primary Metals segment), including $83 in pension costs (see Note W); accelerated depreciation of $58 (Baie Comeau) and asset impairments of $18 (Fusina and Massena East) representing the write-off of the remaining book value of all related properties, plants, and equipment; and $55 in other exit costs. Additionally in 2013, remaining inventories, mostly operating supplies and raw materials, were written down to their net realizable value resulting in a charge of $9 ($6 after-tax), which was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. The other exit costs of $55 represent $48 in asset retirement obligations and $5 in environmental remediation, both of which were triggered by the decisions to permanently shut down and demolish these structures, and $2 in other related costs. As of December 31, 2015, the separations associated with 2013 restructuring programs were essentially complete. In 2015, 2014, and 2013, cash payments of $7, $39, and $33, respectively, were made against layoff reserves related to 2013 restructuring programs. 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: 2015 2014 2013 Alumina $ 233 $ 287 $ 11 Primary Metals 691 553 295 Global Rolled Products 131 266 15 Engineered Products and Solutions 49 13 12 Transportation and Construction Solutions 8 10 16 Segment total 1,112 1,129 349 Corporate 83 39 433 Total restructuring and other charges $ 1,195 $ 1,168 $ 782 Activity and reserve balances for restructuring charges were as follows: Layoff Other Total Reserve balances at December 31, 2012 $ 59 $ 52 $ 111 2013: Cash payments (63 ) (11 ) (74 ) Restructuring charges 201 85 286 Other* (101 ) (84 ) (185 ) Reserve balances at December 31, 2013 96 42 138 2014: Cash payments (191 ) (22 ) (213 ) Restructuring charges 259 194 453 Other* (66 ) (180 ) (246 ) Reserve balances at December 31, 2014 98 34 132 2015: Cash payments (111 ) (12 ) (123 ) Restructuring charges 299 233 532 Other* (60 ) (231 ) (291 ) Reserve balances at December 31, 2015 $ 226 $ 24 $ 250 * Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In 2015, 2014, and 2013, Other for layoff costs also included a reclassification of $35, $26, and $92, respectively, in pension and/or other postretirement benefits costs, as these obligations were included in Alcoa’s separate liability for pension and other postretirement benefits obligations (see Note W). Additionally in 2015, 2014, and 2013, Other for other exit costs also included a reclassification of the following restructuring charges: $76, $95, and $58, respectively, in asset retirement and $86, $47, and $12, respectively, in environmental obligations, as these liabilities were included in Alcoa’s separate reserves for asset retirement obligations (see Note C) and environmental remediation (see Note N). The remaining reserves are expected to be paid in cash during 2016, with the exception of approximately $10 to $15, which is expected to be paid over the next several years for ongoing site remediation work and special layoff benefit payments. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | E. Goodwill and Other Intangible Assets The following table details the changes in the carrying amount of goodwill: Alumina Primary Metals Global Products Engineered Products Transportation Corporate* Total Balance at December 31, 2013: Goodwill $ 9 $ 989 $ 218 $ 2,606 $ 117 $ 1,235 $ 5,174 Accumulated impairment losses - (989 ) - - (28 ) (742 ) (1,759 ) 9 - 218 2,606 89 493 3,415 Acquisitions (F) - - - 1,898 - - 1,898 Divestitures (F) (3 ) - - - - - (3 ) Translation 2 - (8 ) (46 ) (3 ) (8 ) (63 ) Balance at December 31, 2014: Goodwill 8 989 210 4,458 114 1,227 7,006 Accumulated impairment losses - (989 ) - - (28 ) (742 ) (1,759 ) 8 - 210 4,458 86 485 5,247 Acquisitions (F) - - - 261 - - 261 Divestitures (F) - - (1 ) - - - (1 ) Impairment - - - - (25 ) - (25 ) Translation (2 ) - (8 ) (59 ) (3 ) (9 ) (81 ) Balance at December 31, 2015: Goodwill 6 989 201 4,660 111 1,218 7,185 Accumulated impairment losses - (989 ) - - (53 ) (742 ) (1,784 ) 6 - 201 4,660 58 476 5,401 * As of December 31, 2015, the amount reflected in Corporate is allocated to four of Alcoa’s five reportable segments ($146 to Alumina, $59 to Global Rolled Products, $253 to Engineered Products and Solutions, and $18 to Transportation and Construction Solutions) included in the table above for purposes of impairment testing (see Note A). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the four reportable segments. In 2015 and 2013, Alcoa recognized an impairment of goodwill in the amount of $25 and $1,731 ($1,719 after noncontrolling interest), respectively, related to the annual impairment review of the soft alloy extrusion business in Brazil (included in the Transportation and Construction Solutions segment) and the Primary Metals segment, respectively, (see Goodwill and Other Intangible Assets policy in Note A). Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows: December 31, 2015 Gross Accumulated Computer software $ 969 $ (801 ) Patents and licenses 135 (104 ) Other intangibles* 988 (74 ) Total amortizable intangible assets 2,092 (979 ) Indefinite-lived trade names and trademarks 45 - Total other intangible assets $ 2,137 $ (979 ) * As of December 31, 2015, Other intangibles include amounts related to the acquisitions of Firth Rixson, TITAL, and RTI (see Note F). December 31, 2014 Gross Accumulated Computer software $ 973 $ (775 ) Patents and licenses 133 (98 ) Other intangibles* 493 (35 ) Total amortizable intangible assets 1,599 (908 ) Indefinite-lived trade names and trademarks 46 - Total other intangible assets $ 1,645 $ (908 ) * As of December 31, 2014, Other intangibles include amounts related to the acquisition of Firth Rixson (see Note F). Computer software consists primarily of software costs associated with an enterprise business solution (EBS) within Alcoa to drive common systems among all businesses. Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2015, 2014, and 2013 was $77, $69, and $73, respectively, and is expected to be in the range of approximately $75 to $85 annually from 2016 to 2020. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | F. Acquisitions and Divestitures Pro forma results of the Company, assuming all acquisitions described below were made at the beginning of the earliest prior period presented, would not have been materially different from the results reported. 2015 Acquisitions Also in March 2015, Alcoa signed a definitive agreement to acquire RTI International Metals, Inc. (RTI), a U.S. company that was publicly traded on the New York Stock Exchange under the ticker symbol “RTI.” On July 23, 2015, after satisfying all customary closing conditions and receiving the required regulatory and RTI shareholder approvals, Alcoa completed the acquisition of RTI. Alcoa purchased all outstanding shares of RTI common stock in a stock-for-stock transaction valued at $870 (based on the $9.96 per share July 23, 2015 closing price of Alcoa’s common stock). Each issued and outstanding share of RTI common stock prior to the completion of the transaction was converted into the right to receive 2.8315 shares of Alcoa common stock. In total, Alcoa issued 87,397,414 shares of its common stock to consummate this transaction, which was not reflected in the accompanying Statement of Consolidated Cash Flows as it represents a noncash financing activity. The exchange ratio was the quotient of a $41 per RTI common share acquisition price and the $14.48 per share March 6, 2015 closing price of Alcoa’s common stock. In addition to the transaction price, Alcoa also paid $25 ($19 after-tax) in professional fees and costs related to this acquisition. This amount was recorded in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations. RTI is a global supplier of titanium and specialty metal products and services for the commercial aerospace, defense, energy, and medical device end markets. The purpose of this acquisition is to expand Alcoa’s range of titanium offerings and add advanced technologies and materials, primarily related to the aerospace end market. In 2014, RTI generated net sales of $794 and had approximately 2,600 employees. The operating results and assets and liabilities of RTI were included within Alcoa’s Engineered Products and Solutions segment since the date of acquisition. Third-party sales and after-tax operating income (Alcoa’s primary segment performance measure—see Note Q) of RTI from the acquisition date through December 31, 2015 were $309 and less than $(1), respectively. The following table represents the preliminary allocation of the purchase price by major asset acquired and liability assumed, as well as the amount of goodwill recognized: Assets: Cash and cash equivalents $ 302 Receivables from customers 103 Inventories 531 Prepaid expenses and other current assets 47 Properties, plants, and equipment 436 Goodwill 240 Other noncurrent assets 93 Total assets $ 1,752 Liabilities: Accounts payable $ 90 Other current liabilities 94 Long-term debt due within one year 115 Long-term debt, less amount due within one year 385 Other noncurrent liabilities 138 Total liabilities $ 822 Equity: Additional capital $ 60 Total equity $ 60 The amounts in the table above are subject to change based, in part, on management’s review of a third-party valuation of the assets acquired and liabilities assumed, which is expected to be completed in mid-2016. As reflected in the table above, Alcoa recognized goodwill of $240, which represents the earnings growth potential of RTI, Alcoa’s ability to expand its titanium capabilities in the aerospace market, and expected synergies from combining the operations of the two companies. This goodwill was allocated to a new Alcoa reporting unit associated with the Engineered Products and Solutions segment, Alcoa Titanium and Engineered Products, which consists solely of the acquired RTI business. None of this goodwill is deductible for income tax purposes. The other noncurrent assets in the table above include an estimate for intangible assets of $73, most of which were included in Alcoa’s other intangibles class (see Note E). The specific identification and weighted-average amortization period for these intangible assets is dependent on the final valuation. As part of this acquisition, Alcoa assumed the obligation to repay two tranches of convertible debt; one tranche was due and settled in cash on December 1, 2015 (principal amount of $115) and the other tranche is due on October 15, 2019 (principal amount of $403). Upon conversion of the 2019 convertible notes in accordance with their terms, holders will receive, at Alcoa’s election, cash, shares of common stock (up to 27,990,966 shares), or a combination of cash and shares. This cash conversion feature requires the convertible notes to be bifurcated into a liability component and an equity component. The fair value of the liability component was determined by calculating the net present value of the cash flows of the convertible notes using the interest rate of a similar instrument without a conversion feature. The fair value of the equity component is the difference between the fair value of the entire instrument on the date of acquisition and the fair value of the liability and is included as Additional capital on the accompanying Consolidated Balance Sheet. 2015 Divestitures. In March 2015, Alcoa completed the sale of a rolling mill located in Belaya Kalitva, Russia to a wholly-owned subsidiary of Stupino Titanium Company. While owned by Alcoa, the operating results and assets and liabilities of the rolling mill were included in the Global Rolled Products segment. The rolling mill generated sales of approximately $130 in 2014 and, at the time of divestiture, had approximately 1,870 employees. 2014 Acquisitions. In addition to the transaction price, Alcoa also paid $42 ($34 after-tax) in professional fees and costs related to this acquisition. This amount was recorded in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations. Additionally, Alcoa recorded $13 ($8 after-tax) in Interest expense on the accompanying Statement of Consolidated Operations for costs associated with the execution (in June 2014) and termination (in September 2014) of a $2,500 364-day senior unsecured bridge term loan facility. This facility was entered into for the purpose of financing all or a portion of the cash consideration for this acquisition and to pay fees and expenses incurred in connection therewith. However, in September 2014, the facility was no longer necessary as Alcoa completed the issuance of $2,500 in debt (see Note K) and equity (see Note R) instruments to finance the acquisition. Firth Rixson manufactures rings, forgings, and metal products for the aerospace end market, as well as other markets requiring highly engineered material applications. This business has 13 operating facilities in the United States, United Kingdom, Europe, and Asia employing approximately 2,400 people combined. The purpose of this acquisition is to strengthen Alcoa’s aerospace business and position the Company to capture additional aerospace growth with a broader range of high-growth, value-add jet engine components. The operating results and assets and liabilities of Firth Rixson were included within the Engineered Products and Solutions segment since the date of acquisition. Third-party sales and after-tax operating income (Alcoa’s primary segment performance measure—see Note Q) of Firth Rixson from the acquisition date through December 31, 2014 were $81 and $(12), respectively. The following table represents the final allocation of the purchase price by major asset acquired and liability assumed, as well as the amount of goodwill recognized and the net present value of the potential earn-out: Assets: Receivables from customers $ 193 Inventories 227 Prepaid expenses and other current assets 22 Properties, plants, and equipment 493 Goodwill 1,801 Other noncurrent assets 758 Total assets $ 3,494 Liabilities: Accounts payable $ 162 Other current liabilities 100 Contingent consideration 130 Other noncurrent liabilities 107 Total liabilities $ 499 As reflected in the table above, Alcoa recognized goodwill of $1,801, which represents the earnings growth potential of Firth Rixson and expected synergies from combining the operations of the two companies. The goodwill was allocated to two of Alcoa’s reporting units associated with the Engineered Products and Solutions segment, Alcoa Fastening Systems and Rings ($1,117) and Alcoa Forging and Extrusions ($684), on a relative fair value basis. None of the goodwill is deductible for income tax purposes. The other noncurrent assets in the table above represent intangible assets, which were included in the other intangibles class (see Note E). These intangible assets consist primarily of customer relationships and contracts, backlog, qualifications, and technology, and have a weighted-average amortization period of 35 years. The contingent consideration liability presented in the table above represents the net present value of the potential earn-out of $150 (Level 3 in the fair value hierarchy—see Note X). This earn-out is contingent on the Firth Rixson forging business in Savannah, Georgia achieving certain identified financial targets through December 31, 2020. Management has determined that payment of the maximum amount is probable based on the forecasted financial performance of this location. It is estimated that the earn-out will be paid in 2019 through 2020. The fair value of this liability will be updated in future periods with any change resulting in a corresponding charge or credit to earnings. In August 2014, Alcoa completed the acquisition of the 30% outstanding noncontrolling interest in the aluminum brazing sheet venture in Kunshan City, China from Shanxi Yuncheng Engraving Group for $28. The $3 difference between the purchase price and the carrying value of the noncontrolling interest on Alcoa’s Consolidated Balance Sheet was included in Additional capital. 2014 Divestitures. In November 2014, Alcoa completed the sale of an aluminum rod plant located in Bécancour, Québec, Canada to Sural Laminated Products. This facility takes molten aluminum and shapes it into the form of a rod, which is used by customers primarily for the transportation of electricity. While owned by Alcoa, the operating results and assets and liabilities of this plant were included in the Primary Metals segment. In conjunction with this transaction, Alcoa entered into a multi-year agreement with Sural Laminated Products to supply molten aluminum for the rod plant. The aluminum rod plant generated sales of approximately $200 in 2013 and, at the time of divestiture, had approximately 60 employees. In December 2014, Alcoa’s majority-owned subsidiary (60%), Alcoa World Alumina and Chemicals (AWAC), completed the sale of its ownership stake in a bauxite mine and alumina refinery joint venture in Jamaica to Noble Group Ltd. The joint venture was 55% owned by a subsidiary of AWAC, which is 40% owned by Alumina Limited. While owned by AWAC, 55% of both the operating results and assets and liabilities of this joint venture were included in the Alumina segment. As it relates to AWAC’s previous 55% ownership stake, the refinery (AWAC’s share of the capacity was 778,800 metric-tons-per-year) generated sales (third-party and intersegment) of approximately $200 in 2013, and the refinery and mine combined, at the time of divestiture, had approximately 500 employees. Also in December 2014, Alcoa completed the sale of its 50.33% ownership stake in the Mt. Holly smelter located in Goose Creek, South Carolina to Century Aluminum Company. While owned by Alcoa, 50.33% of both the operating results and assets and liabilities related to the smelter were included in the Primary Metals segment. As it relates to Alcoa’s previous 50.33% ownership stake, the smelter (Alcoa’s share of the capacity was 115,000 metric-tons-per-year) Additionally in December 2014, Alcoa completed the sale of three rolling mills located in Spain (Alicante and Amorebieta) and France (Castelsarrasin) to a subsidiary of Atlas Holdings LLC. While owned by Alcoa, the operating results and assets and liabilities of the rolling mills were included in the Global Rolled Products segment. In conjunction with this transaction, Alcoa entered into a multi-year agreement with the buyer to supply aluminum for the rolling mills. The rolling mills combined generated sales of approximately $500 in 2013 and, at the time of divestiture, had approximately 750 employees. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | G. Inventories December 31, 2015 2014 Finished goods $ 811 $ 768 Work-in-process 1,272 1,035 Bauxite and alumina 445 578 Purchased raw materials 720 508 Operating supplies 194 193 $ 3,442 $ 3,082 At December 31, 2015 and 2014, the total amount of inventories valued on a LIFO basis was $1,373 and $1,514, respectively. If valued on an average-cost basis, total inventories would have been $559 and $767 higher at December 31, 2015 and 2014, respectively. During 2015 and 2013, reductions in LIFO inventory quantities caused partial liquidations of the lower cost LIFO inventory base. These liquidations resulted in the recognition of income of $1 ($1 after-tax) in 2015 and $26 ($17 after-tax) in 2013. |
Properties, Plants, and Equipme
Properties, Plants, and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants, and Equipment, Net | H. Properties, Plants, and Equipment, Net December 31, 2015 2014 Land and land rights, including mines* $ 481 $ 548 Structures: Alumina: Alumina refining 2,387 2,750 Bauxite mining 1,054 1,403 Primary Metals: Aluminum smelting 3,567 3,725 Power generation 518 645 Global Rolled Products 1,298 1,276 Engineered Products and Solutions* 658 547 Transportation and Construction Solutions 239 239 Other 619 715 10,340 11,300 Machinery and equipment: Alumina: Alumina refining 3,709 4,165 Bauxite mining 428 524 Primary Metals: Aluminum smelting 6,831 7,210 Power generation 1,044 1,080 Global Rolled Products 5,372 5,333 Engineered Products and Solutions* 2,745 2,402 Transportation and Construction Solutions 682 669 Other 750 820 21,561 22,203 Less: accumulated depreciation, depletion, and amortization 32,382 34,051 Construction work-in-progress* 13,510 14,960 $ 14,815 $ 16,426 * As of December 31, 2015 and 2014, these line items include amounts related to the acquisitions of Firth Rixson, TITAL, and/or RTI (see Note F). As of December 31, 2015 and 2014, the net carrying value of temporarily idled smelting assets was $324 and $419, representing 778 kmt and 665 kmt of idle capacity, respectively. Also, as of December 31, 2015 and 2014, the net carrying value of temporarily idled refining assets was $53 and $62, representing 2,801 kmt and 1,216 kmt of idle capacity, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Investments | I. Investments December 31, 2015 2014 Equity investments $ 1,476 $ 1,780 Other investments 209 164 $ 1,685 $ 1,944 Equity Investments. Alcoa and Saudi Arabian Mining Company (known as “Ma’aden”) have a 30-year (from December 2009) joint venture shareholders’ agreement (automatic extension for an additional 20 years, unless the parties agree otherwise or unless earlier terminated) setting forth the terms for the development, construction, ownership, and operation of an integrated aluminum complex in Saudi Arabia. Specifically, the project being developed by the joint venture consists of: (i) a bauxite mine for the extraction of approximately 4,000 kmt of bauxite from the Al Ba’itha bauxite deposit near Quiba in the northern part of Saudi Arabia; (ii) an alumina refinery with an initial capacity of 1,800 kmt; (iii) a primary aluminum smelter with an initial capacity of 740 kmt; and (iv) a rolling mill with an initial capacity of 380 kmt. The refinery, smelter, and rolling mill have been constructed in an industrial area at Ras Al Khair on the east coast of Saudi Arabia. The facilities use critical infrastructure, including power generation derived from reserves of natural gas, as well as port and rail facilities, developed by the government of Saudi Arabia. First production from the smelter, rolling mill, and mine and refinery occurred in December of 2012, 2013, and 2014, respectively. In 2012, Alcoa and Ma’aden agreed to expand the capabilities of the rolling mill to include a capacity of 100 kmt dedicated to supplying aluminum automotive, building and construction, and foil stock sheet. First production related to the expanded capacity occurred in 2014. This expansion is not expected to result in additional equity investment (see below) due to significant savings anticipated from a change in the project execution strategy of the initial 380 kmt capacity of the rolling mill. The joint venture is owned 74.9% by Ma’aden and 25.1% by Alcoa and consists of three separate companies as follows: one each for the mine and refinery, the smelter, and the rolling mill. Following the signing of the joint venture shareholders’ agreement, Alcoa paid Ma’aden $80 representing the initial investment in the project. In addition, Alcoa paid $56 to Ma’aden, representing Alcoa’s pro rata share of certain agreed upon pre-incorporation costs incurred by Ma’aden prior to formation of the joint venture. Ma’aden and Alcoa have put and call options, respectively, whereby Ma’aden can require Alcoa to purchase from Ma’aden, or Alcoa can require Ma’aden to sell to Alcoa, a 14.9% interest in the joint venture at the then fair market value. These options may only be exercised in a six-month window that opens five years after the Commercial Production Date (as defined in the joint venture shareholders’ agreement) and, if exercised, must be exercised for the full 14.9% interest. The Commercial Production Date for the smelting company was declared on September 1, 2014. There have not been similar declarations yet for the rolling mill company and the mining and refining company. The Alcoa affiliate that holds Alcoa’s interests in the smelting company and the rolling mill company is wholly owned by Alcoa, and the Alcoa affiliate that holds Alcoa’s interests in the mining and refining company is wholly owned by AWAC. Except in limited circumstances, Alcoa may not sell, transfer or otherwise dispose of or encumber or enter into any agreement in respect of the votes or other rights attached to its interests in the joint venture without Ma’aden’s prior written consent. A number of Alcoa employees perform various types of services for the smelting, rolling mill, and refining and mining companies as part of the construction of the fully-integrated aluminum complex. At December 31, 2015 and 2014, Alcoa had an outstanding receivable of $19 and $30, respectively, from the smelting, rolling mill, and refining and mining companies for labor and other employee-related expenses. Capital investment in the project is expected to total approximately $10,800 (SAR 40.5 billion) and has been funded through a combination of equity contributions by the joint venture partners and project financing by the joint venture, which has been guaranteed by both partners (see below). Both the equity contributions and the guarantees of the project financing are based on the joint venture’s partners’ ownership interests. Originally, it was estimated that Alcoa’s total equity investment in the joint venture would be approximately $1,100, of which Alcoa has contributed $981, including $29 and $120 in 2015 and 2014, respectively. Based on changes to both the project’s capital investment and equity and debt structure from the initial plans, the estimated $1,100 equity contribution may be reduced. As of December 31, 2015 and 2014, the carrying value of Alcoa’s investment in this project was $928 and $983, respectively. The smelting and rolling mill companies have project financing totaling $4,311 (reflects principal payments made through December 31, 2015), of which $1,082 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 2017 and 2020 for the smelting company and 2018 and 2021 for the rolling mill company (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 $142 in principal and up to a maximum of approximately $50 in interest per year (based on projected interest rates). At December 31, 2015 and 2014, the combined fair value of the guarantees was $7 and $8, respectively, which was included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet. The mining and refining company has project financing totaling $2,232, of which $560 represents AWAC’s 25.1% interest in the mining and refining company. 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 2019 and 2024 (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 $120 in principal and up to a maximum of approximately $30 in interest per year (based on projected interest rates). At December 31, 2015 and 2014, the combined fair value of the guarantees was $3 and $4, respectively, which 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. In June 2013, all three joint venture companies entered into a 20-year gas supply agreement with Saudi Aramco, replacing the previous authorized gas allocation of the Ministry of Petroleum and Mineral Resources of Saudi Arabia (the “Ministry of Petroleum”). The gas supply agreement provides sufficient fuel to meet manufacturing process requirements as well as fuel to the adjacent combined water and power plant being constructed by Saline Water Conversion Corporation, which is owned by the government of Saudi Arabia and is responsible for desalinating sea water and producing electricity for Saudi Arabia. The combined water and power plant will convert the three joint venture companies’ gas into electricity and water at cost, which will be supplied to the refinery, smelter, and rolling mill. A $60 letter of credit previously provided to the Ministry of Petroleum by Ma’aden (Alcoa is responsible for its pro rata share) under the gas allocation was terminated in June 2015 due to the completion of certain auxiliary rolling facilities. The parties subject to the joint venture shareholders’ agreement may not sell, transfer, or otherwise dispose of, pledge, or encumber any interests in the joint venture until certain milestones have been met as defined in both agreements. Under the joint venture shareholders’ agreement, upon the occurrence of an unremedied event of default by Alcoa, Ma’aden may purchase, or, upon the occurrence of an unremedied event of default by Ma’aden, Alcoa may sell, its interest for consideration that varies depending on the time of the default. Other Investments |
Other Noncurrent Assets
Other Noncurrent Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | J. Other Noncurrent Assets December 31, 2015 2014 Intangibles, net (E) $ 1,158 $ 737 Fair value of derivative contracts (X) 1,008 163 Cash surrender value of life insurance 492 506 Gas supply prepayment (N) 288 - Prepaid gas transmission contract (N) 268 295 Value-added tax receivable 233 294 Deferred mining costs, net 203 209 Unamortized debt expense 58 65 Prepaid pension benefit (W) 44 53 Advance related to European Commission Matter in Italy (N) - 111 Other 254 326 $ 4,006 $ 2,759 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | K. Debt Long-Term Debt. December 31, 2015 2014 5.55% Notes, due 2017 $ 750 $ 750 6.50% Bonds, due 2018 250 250 6.75% Notes, due 2018 750 750 5.72% Notes, due 2019 750 750 1.63% Convertible Notes, due 2019* 403 - 6.150% Notes, due 2020 1,000 1,000 5.40% Notes, due 2021 1,250 1,250 5.87% Notes, due 2022 627 627 5.125% Notes, due 2024 1,250 1,250 5.90% Notes, due 2027 625 625 6.75% Bonds, due 2028 300 300 5.95% Notes due 2037 625 625 BNDES Loans, due 2015-2029 (see below for weighted average rates) 174 267 Iowa Finance Authority Loan, due 2042 (4.75%) 250 250 Other** 61 104 9,065 8,798 Less: amount due within one year 21 29 $ 9,044 $ 8,769 * Amount was assumed in conjunction with the acquisition of RTI (see Note F). ** Other includes various financing arrangements related to subsidiaries, unamortized debt discounts related to the outstanding notes and bonds listed in the table above, an equity option related to the convertible notes due in 2019 (see Note F), and adjustments to the carrying value of long-term debt related to an interest swap contract accounted for as a fair value hedge (see Derivatives in Note X). The principal amount of long-term debt maturing in each of the next five years is $21 in 2016, $771 in 2017, $1,039 in 2018, $1,140 in 2019, and $1,018 in 2020. Public Debt In September 2014, Alcoa completed a public debt offering under its shelf registration statement for $1,250 of 5.125% Notes due 2024 (the “2024 Notes”). Alcoa received $1,238 in net proceeds from the public debt offering reflecting an original issue discount. The net proceeds were used, together with the net proceeds of newly issued mandatory convertible preferred stock (see Note R), to finance the cash portion of the acquisition of Firth Rixson (see Note F). The original issue discount was deferred and is being amortized to interest expense over the term of the 2024 Notes. Interest on the 2024 Notes will be paid semi-annually in April and October, commencing April 2015. Alcoa has the option to redeem the 2024 Notes, as a whole or in part, at any time or from time to time, on at least 30 days, but not more than 60 days, prior notice to the holders of the 2024 Notes at a redemption price specified in the 2024 Notes. The 2024 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the 2024 Notes) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2024 Notes repurchased, plus any accrued and unpaid interest on the 2024 Notes repurchased. The 2024 Notes rank pari passu BNDES Loans As of December 31, 2015 and 2014, Alumínio’s outstanding borrowings were $136 (R$522) and $209 (R$560), respectively, and the weighted-average interest rate was 8.49%. During 2015 and 2014, Alumínio repaid $15 (R$48) and $20 (R$47), respectively, of outstanding borrowings. Additionally, Alumínio borrowed less than $1 (R$1) and $1 (R$2) under the loan in 2015 and 2014, respectively. Alumínio has another loan agreement with BNDES that provides for a financing commitment of $85 (R$177), which also was used to pay for certain expenditures of the Estreito hydroelectric power project. Interest on the loan is a Brazil real rate of interest equal to BNDES’ long-term interest rate plus a margin of 1.55%. Principal and interest are payable monthly, which began in January 2013 and end in September 2029. This loan may be repaid early without penalty with the approval of BNDES. As of December 31, 2015 and 2014, Alumínio’s outstanding borrowings were $38 (R146) and $58 (R$156), respectively, and the interest rate was 6.55%. During 2015 and 2014, Alumínio repaid $3 (R$10) and $5 (R$11), respectively, of outstanding borrowings. Credit Facilities. The Credit Facility was scheduled to mature on July 25, 2019; however, on July 7, 2015, Alcoa received approval for a one-year extension of the maturity date by the lenders and issuers that support the Credit Facility. As such, the Credit Facility now matures on July 25, 2020, unless extended or earlier terminated in accordance with the provisions of the Credit Agreement. Alcoa may make one additional one-year extension request during the remaining term of the Credit Facility, subject to the lender consent requirements set forth in the Credit Agreement. Under the provisions of the Credit Agreement, Alcoa will pay a fee of 0.25% (based on Alcoa’s long-term debt ratings as of December 31, 2015) of the total commitment per annum to maintain the Credit Facility. The Credit Facility is unsecured and amounts payable under it will rank pari passu The Credit Agreement replaces Alcoa’s Five-Year Revolving Credit Agreement, dated as of July 25, 2011 (the “Former Credit Agreement”), which was scheduled to mature on July 25, 2017. The Former Credit Agreement, which had a total capacity of $3,750 and was undrawn, was terminated effective July 25, 2014. The Credit Agreement includes covenants substantially similar to those in the Former Credit Agreement, including, among others, (a) a leverage ratio, (b) limitations on Alcoa’s ability to incur liens securing indebtedness for borrowed money, (c) limitations on Alcoa’s ability to consummate a merger, consolidation or sale of all or substantially all of its assets, and (d) limitations on Alcoa’s ability to change the nature of its business. As of December 31, 2015, Alcoa was in compliance with all such covenants. The obligation of Alcoa to pay amounts outstanding under the Credit Facility may be accelerated upon the occurrence of an “Event of Default” as defined in the Credit Agreement. Such Events of Default include, among others, (a) Alcoa’s failure to pay the principal of, or interest on, borrowings under the Credit Facility, (b) any representation or warranty of Alcoa in the Credit Agreement proving to be materially false or misleading, (c) Alcoa’s breach of any of its covenants contained in the Credit Agreement, and (d) the bankruptcy or insolvency of Alcoa. There were no amounts outstanding at December 31, 2015 and 2014 and no amounts were borrowed during 2015 or 2014 under the Credit Facility. Also, there were no amounts borrowed during 2014 related to the Former Credit Agreement. In addition to the Credit Agreement above, Alcoa has a number of other credit agreements that provide a combined borrowing capacity of $990 as of December 31, 2015, of which $890 is due to expire in 2016 and $100 is due to expire in 2017. The purpose of any borrowings under these credit arrangements is to provide for working capital requirements and for other general corporate purposes. The covenants contained in all these arrangements are the same as the Credit Agreement (see above). In 2015 and 2014, Alcoa borrowed and repaid $1,890 and $1,640, respectively, under the respective credit arrangements. The weighted-average interest rate and weighted-average days outstanding of the respective borrowings during 2015, 2014, and 2013 were 1.61%, 1.54%, and 1.57%, respectively, and 69 days, 67 days, and 213 days, respectively. Short-Term Borrowings. Commercial Paper. |
Other Noncurrent Liabilities an
Other Noncurrent Liabilities and Deferred Credits | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Other Noncurrent Liabilities and Deferred Credits | L. Other Noncurrent Liabilities and Deferred Credits December 31, 2015 2014 Environmental remediation (N) $ 554 $ 473 Asset retirement obligations (C) 551 587 Income taxes (T) 521 377 Accrued compensation and retirement costs 329 346 Fair value of derivative contracts (X) 208 376 Liability related to the resolution of a legal matter (N) 148 222 Contingent payment related to an acquisition (F) 130 130 Deferred alumina sales revenue 84 93 Deferred credit related to derivative contract (X) - 62 Other 213 230 $ 2,738 $ 2,896 |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | M. Noncontrolling Interests The following table summarizes the noncontrolling shareholders’ interests in the equity of certain Alcoa majority-owned December 31, 2015 2014 Alcoa World Alumina and Chemicals $ 2,071 $ 2,474 Other 14 14 $ 2,085 $ 2,488 In 2015, 2014, and 2013, Alcoa received $2, $43, and $9, respectively, in contributions from the noncontrolling shareholder (Alumina Limited) of Alcoa World Alumina and Chemicals. In August 2014, Alcoa acquired the 30% outstanding noncontrolling interest in its aluminum brazing sheet venture in Kunshan City, China (see Note F). In 2013, Noncontrolling interests included a charge of $17 related to a legal matter (see Settlement with Alumina Limited under Litigation in Note N). |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | N. Contingencies and Commitments Contingencies Litigation Alba Matter Civil Suit. On October 9, 2012, the Alcoa Parties, without admitting any liability, entered into a settlement agreement with Alba. The agreement called for AWA to pay Alba $85 in two equal installments, one-half at time of settlement and one-half one year later, and for the case against the Alcoa Parties to be dismissed with prejudice. Additionally, AWA and Alba entered into a long-term alumina supply agreement. On October 9, 2012, pursuant to the settlement agreement, AWA paid Alba $42.5, and all claims against the Alcoa Parties were dismissed with prejudice. On October 9, 2013 pursuant to the settlement agreement, AWA paid the remaining $42.5. Based on the settlement agreement, in the 2012 third quarter, Alcoa recorded a $40 charge in addition to the $45 charge it recorded in the 2012 second quarter in respect of the suit (see Agreement with Alumina Limited below). Government Investigations. In the past year, Alcoa had been seeking settlements of both investigations. In the second quarter of 2013, Alcoa proposed to settle the DOJ matter by offering the DOJ a cash payment of $103. Based on this offer, Alcoa recorded a charge of $103 in the 2013 second quarter. Also in the second quarter of 2013, Alcoa exchanged settlement offers with the SEC. However, the SEC staff rejected Alcoa’s offer of $60 and no charge was recorded. During the remainder of 2013, settlement discussions with both the DOJ and the SEC continued. On January 9, 2014, Alcoa resolved the investigations by the DOJ and the SEC. The settlement with the DOJ was reached with AWA. Under the terms of a plea agreement entered into with the DOJ, effective January 9, 2014, AWA pled guilty to one count of violating the anti-bribery provisions of the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”). As part of the DOJ resolution, AWA agreed to pay a total of $223, including a fine of $209 payable in five equal installments over four years. The first installment of $41.8, plus a one-time administrative forfeiture of $14, was paid in the first quarter of 2014, the second installment of $41.8 was paid in the first quarter of 2015, and the remaining installments of $41.8 each will be paid in the first quarters of 2016 through 2018 (the third installment was paid on January 8, 2016). The DOJ is bringing no case against Alcoa Inc. Effective January 9, 2014, the Company also settled civil charges filed by the SEC in an administrative proceeding relating to the anti-bribery, internal controls, and books and records provisions of the FCPA. Under the terms of the settlement with the SEC, the Company agreed to a settlement amount of $175, but will be given credit for the $14 one-time There was no allegation in the filings by the DOJ and there was no finding by the SEC that anyone at Alcoa Inc. knowingly engaged in the conduct at issue. Based on the resolutions with both the DOJ and SEC, in the 2013 fourth quarter, Alcoa recorded a $288 charge, which includes legal costs of $7, in addition to the $103 charge it recorded in the 2013 second quarter in respect of the investigations (see Agreement with Alumina Limited below). Agreement with Alumina Limited. In October 2012, Alcoa and Alumina Limited entered into an agreement to allocate the costs of the Alba civil settlement and all legal fees associated with this matter (including the government investigations discussed above) between Alcoa and Alumina Limited on an 85% and 15% basis, respectively, but this would occur only if a settlement is reached with the DOJ and the SEC regarding their investigations. As such, the $85 civil settlement in 2012 and all legal costs associated with the civil suit and government investigations incurred prior to 2013 were allocated on a 60% and 40% basis in the respective periods on Alcoa’s Statement of Consolidated Operations. As a result of the resolutions of the government investigations, the $384 charge and legal costs incurred in 2013 were allocated on an 85% and 15% basis per the allocation agreement with Alumina Limited. Additionally, the $85 civil settlement from 2012 and all legal costs associated with the civil suit and government investigations incurred prior to 2013 were reallocated on the 85% and 15% basis. The following table details the activity related to the Alba matter: 2013 2012 Alcoa Alumina Total Alcoa Alumina Total Government investigations (1) $ 326 $ 58 $ 384 $ - $ - $ - Civil suit (1) - - - 51 34 85 Reallocation of civil suit 21 (21 ) - - - - Reallocation of legal costs 20 (20 ) - - - - Loss before income taxes 367 17 384 51 34 85 Benefit for income taxes 66 - 66 18 - 18 Net loss (2) $ 301 $ 17 $ 318 $ 33 $ 34 $ 67 (1) The amount in the Total column was recorded in Restructuring and other charges (see Note D). (2) In 2013 and 2012, the amount for Alcoa was included in Net (loss) income attributable to Alcoa, and the amount for Alumina Limited was included in Net income (loss) attributable to noncontrolling interests. Other Matters On June 5, 2015, AWA and St. Croix Alumina, L.L.C. (“SCA”) filed a complaint in Delaware Chancery Court for a declaratory judgment and injunctive relief to resolve a dispute between Alcoa and Glencore Ltd. (“Glencore”) with respect to claimed obligations under a 1995 asset purchase agreement between Alcoa and Glencore. The dispute arose from Glencore’s demand that Alcoa indemnify it for liabilities it may have to pay to Lockheed Martin (“Lockheed”) related to the St. Croix alumina refinery. Lockheed had earlier filed suit against Glencore in federal court in New York seeking indemnity for liabilities it had incurred and would incur to the U.S. Virgin Islands to remediate certain properties at the refinery property and claimed that Glencore was required by an earlier, 1989 purchase agreement to indemnify it. Glencore had demanded that Alcoa indemnify and defend it in the Lockheed case and threatened to claim over against Alcoa in the New York action despite exclusive jurisdiction for resolution of disputes under the 1995 purchase agreement being in Delaware. After Glencore conceded that it was not seeking to add Alcoa to the New York action, AWA and SCA dismissed their complaint in the Chancery Court case and on August 6, 2015 filed a complaint for declaratory judgment in Delaware Superior Court. AWA and SCA filed a motion for judgment on the pleadings on September 16, 2015. Glencore answered AWA’s and SCA’s complaint and asserted counterclaims on August 27, 2015, and on October 2, 2015 filed its own motion for judgment on the pleadings. Argument on the parties’ motions was held by the court on December 7, 2015, and by order dated February 8, 2016, Alcoa’s motion was granted and Glencore’s motion was denied resulting in Alcoa not being liable to indemnify Glencore for the Lockheed action. On February 17, 2016, Glencore filed notice of its application for interlocutory appeal of the February 8 ruling. AWA and SCA have 10 days to respond. At this time, the Company is unable to reasonably predict the ultimate outcome for this matter. 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 further postponed until June 19, 2014. On this date, the Administrative Court listened to Alcoa’s oral argument, and on September 2, 2014, rendered its decision. The Administrative Court declared the payment request of CCSE and the Energy Authority to Alcoa to be unsubstantiated based on the 148/2004 resolution with respect to the January 19, 2007 through November 19, 2009 timeframe. On December 18, 2014, the CCSE and the Energy Authority appealed the Administrative Court’s September 2, 2014 decision; however, a date for the hearing has not been scheduled. As a result of the conclusion of the European Commission Matter on January 26, 2016 described below, management has modified its outlook with respect to a portion of the pending legal proceedings related to this matter. As such, a charge of $37 (€34) was recorded in Restructuring and other charges for the year ended December 31, 2015 on the accompanying Statement of Consolidated Operations to establish a partial reserve for this matter. At this time, the Company is unable to reasonably predict the ultimate outcome for this matter. European Commission Matter. energy-intensive 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 (see below). Prior to 2012, Alcoa was involved in other legal proceedings related to this matter that separately 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 (on October 17, 2013, the European Court of Justice 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. On October 16, 2014, Alcoa received notice from the General Court of the EU that its April 19, 2010 appeal of the EC’s November 19, 2009 decision was denied. On December 27, 2014, Alcoa filed an appeal of the General Court’s October 16, 2014 ruling to the European Court of Justice (ECJ). Following submission of the EC’s response to the appeal, on June 10, 2015, Alcoa filed a request for an oral hearing before the ECJ; no decision on that request was received. On January 26, 2016, Alcoa was informed that the ECJ had dismissed Alcoa’s December 27, 2014 appeal of the General Court’s October 16, 2014 ruling. The dismissal of Alcoa’s appeal represents the conclusion of the legal proceedings in this matter. Prior to this dismissal, Alcoa had a noncurrent asset of $100 (€91) reflecting the excess of the total of the five payments made to the Italian Government over the reserve recorded in 2009. As a result, this noncurrent asset, along with the $58 (€53) for amounts owed by the Italian Government to Alcoa mentioned above plus $6 (€6) for interest previously paid, was written-off. A charge of $164 (€150) was recorded in Restructuring and other charges for the year ended December 31, 2015 on the accompanying Statement of Consolidated Operations (see Note D). 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 September 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). In June 2013 and August 2014, Alcoa decided to permanently shut down and demolish the Fusina and Portovesme smelters, respectively, due to persistent uneconomical conditions (see Note D). Environmental Matters. 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 $604 and $543 at December 31, 2015 and 2014 (of which $50 and $70 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 2015, the remediation reserve was increased by $115 due to a charge of $52 related to the planned demolition of the remaining structures at the Massena East smelter location (see Note D), a charge of $29 related to the planned demolition of the Poços de Caldas smelter and the Anglesea power station (see Note D), a charge of $12 related to the Mosjøen location (see below), a charge of $7 related to the Portovesme location (see below), and a net charge of $15 associated with a number of other sites. In 2014, the remediation reserve was increased by $61 due to a charge of $42 related to the planned demolition of certain structures at the Massena East, NY, Point Henry and Yennora, Australia, and Portovesme, Italy locations (see Note D), a charge of $3 related to the Portovesme location (see below), and a net charge of $16 associated with a number of other sites. Of the changes to the remediation reserve in 2015 and 2014, $86 and $47, respectively, was recorded in Restructuring and other charges, while the remainder was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. Payments related to remediation expenses applied against the reserve were $43 and $46 in 2015 and 2014, respectively. These amounts include expenditures currently mandated, as well as those not required by any regulatory authority or third party. In 2015, the change in the reserve also reflects a decrease of $16 due to the effects of foreign currency translation and an increase of $5 related to the acquisition of Firth Rixson (see Note F). In 2014, the change in the reserve also reflects an increase of $19 due to the effects of foreign currency translation and 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— Sherwin, TX— East St. Louis, IL— — Fusina and Portovesme, Italy— In December 2009, Trasformazioni and Ligestra reached an initial agreement for settlement of the liabilities related to Fusina while negotiations continued related to Portovesme (see below). 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 was 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 as soon as Alcoa receives final approval from the Ministry of Infrastructure. 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, which began in April 2014, and was previously fully reserved. Separately, in 2009, due to additional information derived from the site investigations conducted at Portovesme, Alcoa increased the reserve by $3. 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 May 2014, Trasformazioni and Ligestra submitted a revised soil remediation project that addressed certain stakeholders’ concerns. Alcoa increased the reserve by $3 in 2014 to reflect the estimated higher costs associated with the revised soil remediation project, as well as current operating and maintenance costs of the Portovesme site. In October 2014, the MOE required a further revised project be submitted to reflect the removal of a larger volume of contaminated soil than what had been proposed, as well as design changes for the cap related to the remaining contaminated soil left in place and the expansion of an emergency containment groundwater pump and treatment system that was previously installed. Trasformazioni and Ligestra submitted the further revised soil remediation project in February 2015. As a result, Alcoa increased the reserve by $7 in March 2015 to reflect the increase in the estimated costs of the project. In October 2015, Alcoa received a final ministerial decree approving the February 2015 revised soil remediation project. Work on the soil remediation project will commence in 2016 and is expected to be completed in 2019. Alcoa and Ligestra are now working on a final groundwater remediation project, which will be submitted to the MOE for review during 2016. The ultimate outcome of this matter may result in a change to the existing reserve for Portovesme. Baie Comeau, Quebec, Canada— Mosjøen, Norway— In April 2015, the NEA notified Alcoa that the revised project was approved and required submission of the final project design before issuing a final order. Alcoa completed and submitted the final project design, which identified a need to stabilize the related wharf structure to allow for the sediment dredging in the harbor. As a result, Alcoa increased the reserve for Mosjøen by $11 in June 2015 to reflect the estimated cost of the wharf stabilization. Also in June 2015, the NEA issued a final order approving the project as well as the final project design. In September 2015, Alcoa increased the reserve by $1 to reflect the potential need (based on prior experience with similar projects) to perform additional dredging if the results of sampling, which is required by the order, don’t achieve the required cleanup levels. Project construction will commence in 2016 and is expected to be completed by the end of 2017. Tax. 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, which was denied in January 2015. The Company filed an appeal of this second assessment in Spain’s National Court in March 2015. The combined assessments (remeasured for a tax rate change enacted in November 2014—see Note T) total $263 (€241). 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. AWAB presented defense of its claim to the RFB on April 8, 2013. If AWAB is successful in this administrative process, the RFB would have no further recourse. If unsuccessful in this process, AWAB has the option to litigate at a judicial level. Separately from the AWAB’s administrative appeal, in June 2015, new tax law was enacted repealing the provisions in the tax code that were the basis for the RFB assessing a 50% penalty in this matter. As such, the estimated range of reasonably possible loss is $0 to $27 (R$103), whereby the maximum end of this range represents the portion of the disallowed credits applicable to the export sales and excludes the 50% penalty. Additionally, the estimated range of disallowed credits related to AWAB’s fixed assets is $0 to $30 (R$117), which would increase the net carrying value of AWAB’s fixed assets if ultimately disallowed. It is management’s opinion that the allegations have no basis; however, at this time, 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 August 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 December 31, 2015, the assessment totaled $35 (R$135), including penalties and interest. While the Company believes it has meritorious defenses, the Company is unable to reasonably predict an outcome. Other. Commitments Investments. Alumínio committed to taking a share of the output of the Machadinho and Barra Grande projects each for 30 years and the Serra do Facão and Estreito projects each for 26 years at cost (including cost of financing the project). In the event that other participants in any of these projects fail to fulfill their financial responsibilities, Alumínio may be required to fund a portion of the deficiency. In accordance with the respective agreements, if Alumínio funds any such deficiency, its participation and share of the output from the respective project will increase proportionately. The Machadinho project reached full capacity in 2002. Alumínio’s investment in this project is 30.99%, which entitles Alumínio to approximately 120 megawatts of assured power. The Machadinho 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. The Barra Grande project reached full capacity in 2006. Alumínio’s investment in this project is 42.18% and is accounted for under the equity method. This entitles Alumínio to approximately 160 megawatts of assured power. Alumínio’s total investment in this project was $94 (R$374) and $132 (R$355) at December 31, 2015 and 2014, respectively. The Serra do Facão project reached full capacity in 2010. Alumínio’s investment in this project is 34.97% and is accounted for under the equity method. This entitles Alumínio to approximately 65 megawatts of assured power. Alumínio’s total investment in this project was $52 (R$208) and $66 (R$178) at December 31, 2015 and 2014, respectively. The Estreito project 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. As of December 31, 2015, construction of the Estreito project is essentially complete. Prior to October 2013, Alumínio’s power self-sufficiency satisfied approximately 70% of a total energy demand of approximately 690 megawatts from two smelters (São Luís (Alumar) and Poços de Caldas) and one refinery (Poços de Caldas) in Brazil. Since that time, the total energy demand has declined by approximately 675 megawatts due to capacity curtailments of both smelters in both 2013 and 2014, as well as the eventual permanent closure of the Poços de Caldas smelter in 2015. 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 made additional contributions of $141 (A$176) for its share of the pipeline capacity expansion and other operational |
Other Expenses (Income), Net
Other Expenses (Income), Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Expenses (Income), Net | O. Other Expenses (Income), Net 2015 2014 2013 Equity loss $ 89 $ 92 $ 68 Interest income (16 ) (19 ) (13 ) Foreign currency losses (gains), net - 1 (33 ) Net gain from asset sales (74 ) (47 ) (10 ) Net loss (gain) on mark-to-market derivative contracts (X) 23 15 (29 ) Other, net (20 ) 5 (8 ) $ 2 $ 47 $ (25 ) In 2015, Net gain from asset sales included a $49 gain related to the sale of land around both the Lake Charles, LA anode facility and at Alcoa’s former Sherwin, TX refinery site, and a $19 gain related to the sale of the remaining equity investment in a China rolling mill. In 2014, Net gain from asset sales included a $28 gain and a $14 gain related to the sale of a mining interest in Suriname and an equity investment in a China rolling mill, respectively. |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | P. Cash Flow Information Cash paid for interest and income taxes was as follows: 2015 2014 2013 Interest, net of amount capitalized $ 487 $ 441 $ 433 Income taxes, net of amount refunded $ 345 301 200 The details related to cash paid for acquisitions (including of a noncontrolling interest in 2014) were as follows: 2015 2014 2013 Assets acquired $ 2,003 $ 3,515 $ - Liabilities assumed (868 ) (345 ) - Contingent consideration liability - (130 ) - Equity issued (870 ) (610 ) - Noncontrolling interest acquired - 31 - Increase in Alcoa’s shareholders’ equity (60 ) (3 ) - Cash paid 205 2,458 - Less: cash acquired 302 45 - Net cash paid $ (97 ) $ 2,413 $ - Noncash Financing and Investing Activities. In early 2014, holders of $575 principal amount of Alcoa’s 5.25% Convertible Notes due March 15, 2014 (the “2014 Notes”) exercised their option to convert the 2014 Notes into 89 million shares of Alcoa common stock (see Note K). This transaction was not reflected in the accompanying Statement of Consolidated Cash Flows as it represents a noncash financing activity. In late 2014, Alcoa paid $2,995 (net of cash acquired) to acquire Firth Rixson (see Note F). A portion of this consideration was paid through the issuance of 37 million shares in Alcoa common stock valued at $610. The issuance of common stock was not reflected in the accompanying Statement of Consolidated Cash Flows as it represents a noncash investing activity. |
Segment and Geographic Area Inf
Segment and Geographic Area Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographic Area Information | Q. Segment and Geographic Area Information Alcoa is primarily a producer of aluminum products. Aluminum and alumina represent approximately 80% of Alcoa’s revenues. Nonaluminum products include precision castings and aerospace and industrial fasteners. Alcoa’s products are used worldwide in transportation (including aerospace, automotive, truck, trailer, rail, and shipping), packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa’s segments are organized by product on a worldwide basis. Segment performance under Alcoa’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is the after-tax operating income (ATOI) of each segment. Certain items such as the impact of LIFO inventory accounting; metal price lag (see below); 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; and other items, including intersegment profit eliminations, differences between tax rates applicable to the segments and the consolidated effective tax rate, and other nonoperating items such as foreign currency transaction gains/losses and interest income are excluded from segment ATOI. Segment assets exclude, among others, cash and cash equivalents; deferred income taxes; goodwill not allocated to businesses for segment reporting purposes; corporate fixed assets; and LIFO reserves. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note A). Transactions among segments are established based on negotiation among the parties. Differences between segment totals and Alcoa’s consolidated totals for line items not reconciled are in Corporate. Effective in the second quarter of 2015, management removed the impact of metal price lag from the results of the Global Rolled Products and Engineered Products and Solutions (now Engineered Products and Solutions and Transportation and Construction Solutions—see below) segments in order to enhance the visibility of the underlying operating performance of these businesses. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by the respective segment. In general, when the price of metal increases, metal price lag is favorable, and when the price of metal decreases, metal price lag is unfavorable. The impact of metal price lag is now reported as a separate line item in Alcoa’s reconciliation of total segment ATOI to consolidated net (loss) income attributable to Alcoa. As a result, this change does not impact the consolidated results of Alcoa. Segment information for all prior periods presented was updated to reflect this change. In the third quarter of 2015, management approved a realignment of Alcoa’s Engineered Products and Solutions segment due to the expansion of this part of Alcoa’s business portfolio through both organic and inorganic growth. This realignment consisted of moving both the Alcoa Wheel and Transportation Products and Building and Construction Systems business units to a new reportable segment named Transportation and Construction Solutions. Additionally, the Latin American soft alloy extrusions business previously included in Corporate was moved into the new Transportation and Construction Solutions segment. The remaining Engineered Products and Solutions segment consists of the Alcoa Fastening Systems and Rings (renamed to include portions of the Firth Rixson business acquired in November 2014), Alcoa Power and Propulsion (includes the TITAL business acquired in March 2015), Alcoa Forgings and Extrusions (includes the other portions of Firth Rixson), and Alcoa Titanium and Engineered Products (a new business unit that consists solely of the RTI International Metals business acquired in July 2015) business units. Segment information for all prior periods presented was updated to reflect the new segment structure. Alcoa’s operations consist of five worldwide reportable segments as follows: Alumina. Primary Metals. Global Rolled Products. Engineered Products and Solutions. Transportation and Construction Solutions. The operating results and assets of Alcoa’s reportable segments were as follows: Alumina Primary Metals Global Products Engineered Products Transportation Total 2015 Sales: Third-party sales $ 3,455 $ 5,591 $ 6,238 $ 5,342 $ 1,882 $ 22,508 Intersegment sales 1,687 2,170 125 - - 3,982 Total sales $ 5,142 $ 7,761 $ 6,363 $ 5,342 $ 1,882 $ 26,490 Profit and loss: Equity loss $ (41 ) $ (12 ) $ (32 ) $ - $ - $ (85 ) Depreciation, depletion, and amortization 296 429 227 233 43 1,228 Income taxes 300 (28 ) 109 282 63 726 ATOI 746 155 244 595 166 1,906 2014 Sales: Third-party sales $ 3,509 $ 6,800 $ 7,351 $ 4,217 $ 2,021 $ 23,898 Intersegment sales 1,941 2,931 185 - - 5,057 Total sales $ 5,450 $ 9,731 $ 7,536 $ 4,217 $ 2,021 $ 28,955 Profit and loss: Equity loss $ (29 ) $ (34 ) $ (27 ) $ - $ - $ (90 ) Depreciation, depletion, and amortization 387 494 235 137 42 1,295 Income taxes 153 203 89 298 69 812 ATOI 370 594 245 579 180 1,968 2013 Sales: Third-party sales $ 3,326 $ 6,596 $ 7,106 $ 4,054 $ 1,951 $ 23,033 Intersegment sales 2,235 2,621 178 - - 5,034 Total sales $ 5,561 $ 9,217 $ 7,284 $ 4,054 $ 1,951 $ 28,067 Profit and loss: Equity loss $ (4 ) $ (51 ) $ (13 ) $ - $ - $ (68 ) Depreciation, depletion, and amortization 426 526 226 124 42 1,344 Income taxes 66 (74 ) 123 286 67 468 ATOI 259 (20 ) 292 569 167 1,267 2015 Assets: Capital expenditures $ 184 $ 156 $ 307 $ 383 $ 77 $ 1,107 Equity investments 667 634 217 - - 1,518 Goodwill 6 - 201 4,660 58 4,925 Total assets 6,165 7,324 4,498 10,732 947 29,666 2014 Assets: Capital expenditures $ 246 $ 176 $ 389 $ 249 $ 72 $ 1,132 Equity investments 669 890 226 - - 1,785 Goodwill 8 - 210 4,458 86 4,762 Total assets 7,350 9,308 4,908 8,800 975 31,341 The following tables reconcile certain segment information to consolidated totals: 2015 2014 2013 Sales: Total segment sales $ 26,490 $ 28,955 $ 28,067 Elimination of intersegment sales (3,982 ) (5,057 ) (5,034 ) Corporate 26 8 (1 ) Consolidated sales $ 22,534 $ 23,906 $ 23,032 2015 2014 2013 Net (loss) income attributable to Alcoa: Total segment ATOI $ 1,906 $ 1,968 $ 1,267 Unallocated amounts (net of tax): Impact of LIFO 136 (54 ) 52 Metal price lag (133 ) 78 (45 ) Interest expense (324 ) (308 ) (294 ) Noncontrolling interests (125 ) 91 (41 ) Corporate expense (266 ) (284 ) (274 ) Impairment of goodwill (25 ) - (1,731 ) Restructuring and other charges (943 ) (894 ) (607 ) Other (548 ) (329 ) (612 ) Consolidated net (loss) income attributable to Alcoa $ (322 ) $ 268 $ (2,285 ) December 31, 2015 2014 Assets: Total segment assets $ 29,666 $ 31,341 Elimination of intersegment receivables (318 ) (490 ) Unallocated amounts: Cash and cash equivalents 1,919 1,877 Deferred income taxes 2,668 3,139 Corporate goodwill 476 485 Corporate fixed assets, net 733 819 LIFO reserve (559 ) (767 ) Fair value of derivative contracts 1,078 16 Other 865 943 Consolidated assets $ 36,528 $ 37,363 Sales by major product grouping were as follows: 2015 2014 2013 Sales: Alumina $ 3,333 $ 3,401 $ 3,151 Primary aluminum 5,085 6,011 6,194 Flat-rolled aluminum 6,238 7,351 7,106 Investment castings 1,812 1,784 1,807 Fastening systems 2,168 1,647 1,505 Architectural aluminum systems 951 1,002 977 Aluminum wheels 790 786 702 Other extruded and forged products 1,332 1,019 1,015 Other 825 905 575 $ 22,534 $ 23,906 $ 23,032 Geographic information for sales was as follows (based upon the country where the point of sale occurred): 2015 2014 2013 Sales: United States (1) $ 12,425 $ 12,103 $ 11,766 Spain (2) (3) 2,853 3,359 2,282 Australia 2,196 3,028 3,240 Brazil 854 1,398 1,221 France 802 915 862 United Kingdom 698 464 475 Hungary 622 630 555 China 565 415 259 Russia 455 642 683 Canada 308 143 123 Germany 264 229 230 Italy 139 150 157 Netherlands (3) 34 36 524 Norway (2) 30 31 283 Other 289 363 372 $ 22,534 $ 23,906 $ 23,032 (1) Sales of a portion of the alumina from Alcoa’s refineries in Suriname, Brazil, Australia, and Jamaica (prior to divestiture—see Note F) and most of the aluminum from Alcoa’s smelters in Canada occurred in the United States. (2) In 2015, 2014, and 2013, Sales of the aluminum from Alcoa’s smelters in Norway occurred in Spain. (3) In 2015 and 2014, Sales of the aluminum from Alcoa’s smelter in Iceland occurred in Spain. In 2013, Sales of the aluminum from Alcoa’s smelter in Iceland occurred in both Spain and the Netherlands. Geographic information for long-lived assets was as follows (based upon the physical location of the assets): December 31, 2015 2014 Long-lived assets: United States $ 5,758 $ 5,403 Australia 2,159 2,538 Brazil 2,046 3,137 Iceland 1,397 1,460 Canada 1,238 1,216 Norway 463 588 China 352 389 United Kingdom 312 333 Russia 303 443 Spain 294 339 Hungary 190 210 Other 303 370 $ 14,815 $ 16,426 |
Preferred and Common Stock
Preferred and Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Preferred and Common Stock | R. Preferred and Common Stock Preferred Stock. In September 2014, Alcoa completed a public offering under its shelf registration statement for $1,250 of 25 million depositary shares, each of which represents a 1/10th interest in a share of Alcoa’s 5.375% Class B Mandatory Convertible Preferred Stock, Series 1, par value $1 per share, liquidation preference $500 per share (the “Mandatory Convertible Preferred Stock”). The 25 million depositary shares are equivalent to 2.5 million shares of Mandatory Convertible Preferred Stock. Each depositary share entitles the holder, through the depositary, to a proportional fractional interest in the rights and preferences of a share of Mandatory Convertible Preferred Stock, including conversion, dividend, liquidation, and voting rights, subject to terms of the deposit agreement. Alcoa received $1,213 in net proceeds from the public offering reflecting an underwriting discount. The net proceeds were used, together with the net proceeds of issued debt (see Note K), to finance the cash portion of the acquisition of Firth Rixson (see Note F). The underwriting discount was recorded as a decrease to Additional capital on the accompanying Consolidated Balance Sheet. The Mandatory Convertible Preferred Stock constitutes a series of Alcoa’s Class B Serial Preferred Stock, which ranks senior to Alcoa’s common stock and junior to Alcoa’s Class A Preferred Stock and existing and future indebtedness. Dividends on the Mandatory Convertible Preferred Stock are cumulative in nature and are paid at the rate of $26.8750 per annum per share, which commenced January 1, 2015 (paid on December 30, 2014). Holders of the Mandatory Convertible Preferred Stock generally have no voting rights. On the mandatory conversion date, October 1, 2017, all outstanding shares of Mandatory Convertible Preferred Stock will automatically convert into shares of Alcoa’s common stock. Based on the Applicable Market Value (as defined in the terms of the Mandatory Convertible Preferred Stock) of Alcoa’s common stock on the mandatory conversion date, each share of Mandatory Convertible Preferred Stock will be convertible into not more than 30.9406 shares of common stock and not less than 25.7838 shares of common stock, subject to certain anti-dilution and other adjustments as described in the terms of the Mandatory Convertible Preferred Stock. At any time prior to October 1, 2017, a holder may elect to convert shares of Mandatory Convertible Preferred Stock, in whole or in part (but in no event less than one share of Mandatory Convertible Preferred Stock), at the minimum conversion rate of 25.7838 shares of common stock, subject to certain anti-dilution and other adjustments as described in the terms of the Mandatory Convertible Preferred Stock. Alcoa does not have the right to redeem the Mandatory Convertible Preferred Stock. If Alcoa undergoes a fundamental change, as defined in the terms of the Mandatory Convertible Preferred Stock, holders may elect to convert their Mandatory Convertible Preferred Stock, in whole or in part (but in no event less than one share of Mandatory Convertible Preferred Stock), into shares of Alcoa’s common stock. The per share conversion rate under a fundamental change is not less than 25.2994 shares of common stock and not more than 30.9406 shares of common stock. Holders who elect to convert will also receive any accumulated and unpaid dividends and a Fundamental Change Dividend Make-whole Amount (as defined in the terms of the Mandatory Convertible Preferred Stock) equal to the present value of all remaining dividend payments on the Mandatory Convertible Preferred Stock. Common Stock. In July 2015, Alcoa issued 87 million shares of common stock as consideration paid to acquire RTI (see Note F). In early 2014, Alcoa issued 89 million shares of common stock under the terms of Alcoa’s 5.25% Convertible Notes due March 15, 2014 (see Note K). Also, in November 2014, Alcoa issued 37 million shares of common stock as part of the consideration paid to acquire an aerospace business, Firth Rixson (see Note F). As of December 31, 2015, 77 million shares of common stock were reserved for issuance under Alcoa’s stock-based compensation plans, respectively. Alcoa issues shares from treasury stock to satisfy the exercise of stock options and the conversion of stock awards. Share Activity Common stock Treasury Outstanding Balance at end of 2012 110,694,604 1,067,211,953 Conversion of convertible notes - 310 Issued for stock-based compensation plans (3,798,899 ) 3,798,899 Balance at end of 2013 106,895,705 1,071,011,162 Conversion of convertible notes - 89,383,953 Private placement - 36,523,010 Issued for stock-based compensation plans (19,745,536 ) 19,745,536 Balance at end of 2014 87,150,169 1,216,663,661 Acquisition of RTI - 87,397,414 Issued for stock-based compensation plans (6,099,066 ) 6,099,066 Balance at end of 2015 81,051,103 1,310,160,141 Stock-based Compensation Alcoa has a stock-based compensation plan under which stock options and stock awards are granted in January each year to eligible employees. Most plan participants can choose whether to receive their award in the form of stock options, stock awards, or a combination of both. This choice is made before the grant is issued and is irrevocable. Stock options are granted at the closing market price of Alcoa’s common stock on the date of grant and vest over a three-year service period (1/3 each year) with a ten-year contractual term. Stock awards also vest over a three-year service period from the date of grant and certain of these awards also include performance conditions. In 2015, 2014, and 2013, the final number of performance stock awards earned will be based on Alcoa’s achievement of sales and profitability targets over the respective three-year period. One-third of the award will be earned each year based on the performance against the pre-established targets for that year. The performance stock awards earned over the three-year period vest at the end of the third year. In 2015, 2014, and 2013, Alcoa recognized stock-based compensation expense of $92 ($61 after-tax), $87 ($58 after-tax), and $71 ($48 after-tax), respectively, of which approximately 80%, 80%, and 70%, respectively, related to stock awards (there was no stock-based compensation expense capitalized in 2015, 2014, or 2013). At December 31, 2015, there was $71 (pretax) of unrecognized compensation expense related to non-vested stock option grants and non-vested stock award grants. This expense is expected to be recognized over a weighted average period of 1.6 years. As part of Alcoa’s stock-based compensation plan design, individuals who are retirement-eligible have a six-month requisite service period in the year of grant. As a result, a larger portion of expense will be recognized in the first half of each year for these retirement-eligible employees. Of the total pretax compensation expense recognized in 2015, 2014, and 2013, $17, $15, and $14, respectively, pertains to the acceleration of expense related to retirement-eligible employees. Stock-based compensation expense is based on the grant date fair value of the applicable equity grant. For stock awards, the fair value was equivalent to the closing market price of Alcoa’s common stock on the date of grant. For stock options, the fair value was estimated on the date of grant using a lattice-pricing model, which generated a result of $4.47, $2.84, and $2.24 per option in 2015, 2014, and 2013, respectively. The lattice-pricing model uses a number of assumptions to estimate the fair value of a stock option, including an average risk-free interest rate, dividend yield, volatility, exercise behavior, and contractual life. The following paragraph describes in detail the assumptions used to estimate the fair value of stock options granted in 2015 (the assumptions used to estimate the fair value of stock options granted in 2014 and 2013 were not materially different). The range of average risk-free interest rates (0.07-1.83%) was based on a yield curve of interest rates at the time of the grant based on the contractual life of the option. The dividend yield (0.8%) was based on a one-year average. Volatility (32-41%) was based on historical and implied volatilities over the term of the option. Alcoa utilized historical option forfeiture data to estimate annual pre- and post-vesting forfeitures (7%). Exercise behavior (50%) was based on a weighted average exercise ratio (exercise patterns for grants issued over the number of years in the contractual option term) of an option’s intrinsic value resulting from historical employee exercise behavior. Based upon the other assumptions used in the determination of the fair value, the life of an option (5.9 years) was an output of the lattice-pricing model. The activity for stock options and stock awards during 2015 was as follows (options and awards in millions): Stock options Stock awards Number of options Weighted average exercise price Number of awards Weighted average FMV per award Outstanding, January 1, 2015 32 11.26 19 9.98 Granted 3 15.55 7 14.85 Assumed at Acquisition 2 11.24 1 9.96 Exercised (3 ) 8.95 - - Converted - - (5 ) 10.08 Expired or forfeited (1 ) 13.39 (1 ) 11.64 Performance share adjustment - - (1 ) 10.96 Outstanding, December 31, 2015 33 11.91 20 11.38 As of December 31, 2015, the number of stock options outstanding had a weighted average remaining contractual life of 6.08 years and a total intrinsic value of $8. Additionally, 23.3 million of the stock options outstanding were fully vested and exercisable and had a weighted average remaining contractual life of 5.25 years, a weighted average exercise price of $11.82, and a total intrinsic value of $5 as of December 31, 2015. In 2015, 2014, and 2013, the cash received from stock option exercises was $25, $150, and $13 and the total tax benefit realized from these exercises was $6, $28, and $1, respectively. The total intrinsic value of stock options exercised during 2015, 2014, and 2013 was $19, $84, and $2, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | S. 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): 2015 2014 2013 Net (loss) income attributable to Alcoa $ (322 ) $ 268 $ (2,285 ) Less: preferred stock dividends declared 69 21 2 Net (loss) income available to Alcoa common shareholders—basic (391 ) 247 (2,287 ) Add: dividends related to mandatory convertible preferred stock - - - Add: interest expense related to convertible notes - - - Net (loss) income available to Alcoa common shareholders—diluted $ (391 ) $ 247 $ (2,287 ) Average shares outstanding—basic 1,259 1,162 1,070 Effect of dilutive securities: Stock options - 7 - Stock and performance awards - 11 - Mandatory convertible preferred stock - - - Convertible notes - - - Average shares outstanding—diluted 1,259 1,180 1,070 In 2015, 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, 77 million share equivalents related to mandatory convertible preferred were not included in the computation of diluted EPS. Additionally, 20 million stock awards, 33 million stock options, and 15 million (weighted-average) share equivalents related to convertible debt (acquired from RTI—see Note F) were not included in the computation of diluted EPS. Had Alcoa generated net income in 2015, 77 million, 15 million, 12 million, and 3 million potential shares of common stock related to the mandatory convertible preferred stock, convertible notes, stock awards, and stock options, respectively, would have been included in diluted average shares outstanding. In 2014, 16 million and 22 million share equivalents related to convertible notes and mandatory convertible preferred stock, respectively, were not included in the computation of diluted EPS because their effect was anti-dilutive. In 2013, 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, 89 million share equivalents related to convertible notes, 16 million stock awards, and 12 million stock options were not included in the computation of diluted EPS. Had Alcoa generated sufficient income from continuing operations in 2013, 89 million, 9 million, and 2 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. Options to purchase 26 million, 3 million, and 12 million shares of common stock at a weighted average exercise price of $12.75, $16.24, and $15.81 per share were outstanding as of December 31, 2015, 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 | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | T. Income Taxes The components of income (loss) before income taxes were as follows: 2015 2014 2013 United States $ (607 ) $ (125 ) $ (1,269 ) Foreign 855 622 (547 ) $ 248 $ 497 $ (1,816 ) The provision for income taxes consisted of the following: 2015 2014 2013 Current: Federal* $ 3 $ (3 ) $ 14 Foreign 409 357 235 State and local (1 ) 1 1 411 355 250 Deferred: Federal* (108 ) 7 84 Foreign 142 (41 ) 95 State and local - (1 ) (1 ) 34 (35 ) 178 Total $ 445 $ 320 $ 428 * Includes U.S. taxes related to foreign income The exercise of employee stock options generated a tax benefit of $3 and $9 in 2015 and 2014, respectively, and a tax charge of $1 in 2013, representing only the difference between compensation expense recognized for financial reporting and tax purposes. These amounts decreased equity and increased either current taxes payable or deferred tax assets (not operating losses) in the respective periods. Alcoa has unamortized tax-deductible goodwill of $27 resulting from intercompany stock sales and reorganizations. Alcoa recognizes the tax benefits (at a 28% rate in 2015 and will be at a rate of 25% in 2016 and later years) associated with this tax-deductible goodwill as it is being amortized for local income tax purposes rather than in the period in which the transaction is consummated. A reconciliation of the U.S. federal statutory rate to Alcoa’s effective tax rate was as follows (the effective tax rate for 2015 and 2014 was a provision on income and for 2013 was a provision on a loss): 2015 2014 2013 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % Taxes on foreign operations 0.4 (3.2 ) 0.7 Permanent differences on restructuring and other charges and asset disposals 2.7 (3.5 ) (0.8 ) Non-deductible acquisition costs 5.2 1.7 - Equity income/loss 4.9 3.2 (0.7 ) Noncontrolling interests (1) 11.4 6.8 (3.1 ) Statutory tax rate and law changes (2) (0.8 ) 17.9 0.6 Tax holidays (3) (11.3 ) 6.1 - Tax credits (3.6 ) (1.3 ) 0.2 Changes in valuation allowances 135.3 3.5 (23.2 ) Impairment of goodwill 3.6 - (33.3 ) Company-owned life insurance/split-dollar net premiums (2.2 ) (2.2 ) 1.1 Other (1.2 ) 0.4 (0.1 ) Effective tax rate 179.4 % 64.4 % (23.6 )% (1) In 2014, the noncontrolling interests’ impact on Alcoa’s effective tax rate was mostly due to the noncontrolling interest’s share of a loss on the divestiture of an ownership interest in a mining and refining joint venture in Jamaica (see Note F). (2) In November 2014, Spain enacted corporate tax reform that changed the corporate tax rate from 30% in 2014 to 28% in 2015 to 25% in 2016. As a result, Alcoa remeasured certain deferred tax assets related to Spanish subsidiaries. (3) In 2014, a tax holiday for certain Alcoa subsidiaries in Brazil became effective (see below). The components of net deferred tax assets and liabilities were as follows: 2015 2014 December 31, Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Depreciation $ 194 $ 1,353 $ 147 $ 1,187 Employee benefits 2,517 34 2,413 37 Loss provisions 486 9 441 10 Deferred income/expense 37 294 30 230 Tax loss carryforwards 1,917 - 2,075 - Tax credit carryforwards 693 - 625 - Derivatives and hedging activities - 276 5 39 Other 680 339 521 297 6,524 2,305 6,257 1,800 Valuation allowance (2,037 ) - (1,668 ) - $ 4,487 $ 2,305 $ 4,589 $ 1,800 The following table details the expiration periods of the deferred tax assets presented above: December 31, 2015 Expires within 10 years Expires within 11-20 years No expiration* Other* Total Tax loss carryforwards $ 361 $ 694 $ 862 $ - $ 1,917 Tax credit carryforwards 492 103 98 - 693 Other - - 473 3,441 3,914 Valuation allowance (596 ) (704 ) (423 ) (314 ) (2,037 ) $ 257 $ 93 $ 1,010 $ 3,127 $ 4,487 * Deferred tax assets with no expiration may still have annual limitations on utilization. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. A substantial amount of Other relates to employee benefits that will become deductible for tax purposes over an extended period of time as contributions are made to employee benefit plans and payments are made to retirees. The total deferred tax asset (net of valuation allowance) is supported by projections of future taxable income exclusive of reversing temporary differences (58%) and taxable temporary differences that reverse within the carryforward period (42%). Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Alcoa’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. In certain jurisdictions, deferred tax assets related to cumulative losses exist without a valuation allowance where in management’s judgment the weight of the positive evidence more than offsets the negative evidence of the cumulative losses. Upon changes in facts and circumstances, management may conclude that deferred tax assets for which no valuation allowance is currently recorded may not be realized, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. In 2013, Alcoa recognized a $372 discrete income tax charge for valuation allowances on certain deferred tax assets in Spain and the United States. Of this amount, a $237 valuation allowance was established on the full value of the deferred tax assets related to a Spanish consolidated tax group. These deferred tax assets have an expiration period ranging from 2016 (for certain credits) to an unlimited life (for operating losses). After weighing all available positive and negative evidence, as described above, management determined that it was no longer more likely than not that Alcoa will realize the tax benefit of these deferred tax assets. This was mainly driven by a decline in the outlook of the Primary Metals business (2013 realized prices were the lowest since 2009) combined with prior year cumulative losses of the Spanish consolidated tax group. During 2014, the underlying value of the deferred tax assets decreased due to a remeasurement as a result of the enactment of new tax rates in Spain beginning in 2015, the sale of a member of the Spanish consolidated tax group, and a change in foreign currency exchange rates. As a result the valuation allowance decreased by the same amount. At December 31, 2015, the amount of the valuation allowance was $149. This valuation allowance was reevaluated as of December 31, 2015, and no change to the allowance was deemed necessary based on all available evidence. The need for this valuation allowance will be assessed on a continuous basis in future periods and, as a result, a portion or all of the allowance may be reversed based on changes in facts and circumstances. The remaining $135 recognized in 2013 relates to a valuation allowance established on a portion of available foreign tax credits in the United States. These credits can be carried forward for 10 years, and have an expiration period ranging from 2016 to 2023 as of December 31, 2013 (2016 to 2025 as of December 31, 2015). After weighing all available positive and negative evidence, as described above, management determined that it was no longer more likely than not that Alcoa will realize the full tax benefit of these foreign tax credits. This was primarily due to lower foreign sourced taxable income after consideration of tax planning strategies and after the inclusion of earnings from foreign subsidiaries projected to be distributable as taxable foreign dividends. This valuation allowance was reevaluated as of December 31, 2015, and due to reductions in foreign sourced taxable income, a $134 discrete income tax charge was recognized. Additionally, $15 of foreign tax credits expired at the end of 2015 resulting in a corresponding decrease to the valuation allowance. At December 31, 2015, the amount of the valuation allowance was $254. The need for this valuation allowance will be assessed on a continuous basis in future periods and, as a result, an increase or decrease to this allowance may result based on changes in facts and circumstances. In 2015, Alcoa recognized an additional $141 discrete income tax charge for valuation allowances on certain deferred tax assets in Iceland and Suriname. Of this amount, an $85 valuation allowance was established on the full value of the deferred tax assets in Suriname, which were related mostly to employee benefits and tax loss carryforwards. These deferred tax assets have an expiration period ranging from 2016 to 2022. The remaining $56 charge relates to a valuation allowance established on a portion of the deferred tax assets recorded in Iceland. These deferred tax assets have an expiration period ranging from 2017 to 2023. After weighing all available positive and negative evidence, as described above, management determined that it was no longer more likely than not that Alcoa will realize the tax benefit of either of these deferred tax assets. This was mainly driven by a decline in the outlook of the Primary Metals business, combined with prior year cumulative losses and a short expiration period. The need for this valuation allowance will be assessed on a continuous basis in future periods and, as a result, a portion or all of the allowance may be reversed based on changes in facts and circumstances. In December 2011, one of Alcoa’s subsidiaries in Brazil applied for a tax holiday related to its expanded mining and refining operations. During 2013, the application was amended and re-filed and, separately, a similar application was filed for another one of the Company’s subsidiaries in Brazil. The deadline for the Brazilian government to deny the application was July 11, 2014. Since Alcoa did not receive notice that its applications were denied, the tax holiday took effect automatically on July 12, 2014. As a result, the tax rate applicable to qualified holiday income for these subsidiaries decreased significantly (from 34% to 15.25%), resulting in future cash tax savings over the 10-year holiday period (retroactively effective as of January 1, 2013). Additionally, a portion of one of the subsidiaries net deferred tax asset that reverses within the holiday period was remeasured at the new tax rate (the net deferred tax asset of the other subsidiary was not remeasured since it could still be utilized against the subsidiary’s future earnings not subject to the tax holiday). This remeasurement resulted in a decrease to that subsidiary’s net deferred tax asset and a noncash charge to earnings of $52 ($31 after noncontrolling interest). The following table details the changes in the valuation allowance: December 31, 2015 2014 2013 Balance at beginning of year $ 1,668 $ 1,804 $ 1,400 Increase to allowance 472 117 471 Release of allowance (42 ) (77 ) (41 ) Acquisitions and divestitures (F) 29 (37 ) - U.S. state tax apportionment and tax rate changes (45 ) (80 ) (32 ) Foreign currency translation (45 ) (59 ) 6 Balance at end of year $ 2,037 $ 1,668 $ 1,804 The cumulative amount of Alcoa’s foreign undistributed net earnings for which no deferred taxes have been provided was approximately $4,000 at December 31, 2015. Alcoa has a number of commitments and obligations related to the Company’s growth strategy in foreign jurisdictions. As such, management has no plans to distribute such earnings in the foreseeable future, and, therefore, has determined it is not practicable to determine the related deferred tax liability. Alcoa and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. With a few minor exceptions, Alcoa is no longer subject to income tax examinations by tax authorities for years prior to 2006. All U.S. tax years prior to 2015 have been audited by the Internal Revenue Service. Various state and foreign jurisdiction tax authorities are in the process of examining Alcoa’s income tax returns for various tax years through 2014. A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows: December 31, 2015 2014 2013 Balance at beginning of year $ 35 $ 63 $ 66 Additions for tax positions of the current year 2 2 2 Additions for tax positions of prior years 15 5 11 Reductions for tax positions of prior years (2 ) (4 ) (2 ) Settlements with tax authorities (2 ) (29 ) (8 ) Expiration of the statute of limitations (1 ) - (2 ) Foreign currency translation (4 ) (2 ) (4 ) Balance at end of year $ 43 $ 35 $ 63 For all periods presented, a portion of the balance at end of year pertains to state tax liabilities, which are presented before any offset for federal tax benefits. The effect of unrecognized tax benefits, if recorded, that would impact the annual effective tax rate for 2015, 2014, and 2013 would be approximately 12%, 4%, and (1)%, respectively, of pretax book income (loss). Alcoa does not anticipate that changes in its unrecognized tax benefits will have a material impact on the Statement of Consolidated Operations during 2016 (see Other Matters in Note N for a matter for which no reserve has been recognized). It is Alcoa’s policy to recognize interest and penalties related to income taxes as a component of the Provision for income taxes on the accompanying Statement of Consolidated Operations. In 2015, 2014, and 2013, Alcoa recognized $8, $1, and $2, respectively, in interest and penalties. Due to the expiration of the statute of limitations, settlements with tax authorities, and refunded overpayments, Alcoa also recognized interest income of $2, $5, and $12 in 2015, 2014, and 2013, respectively. As of December 31, 2015 and 2014, the amount accrued for the payment of interest and penalties was $9. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |
Receivables | U. Receivables Sale of Receivables Programs 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 $200 up to a maximum of $500 for receivables sold. On March 30, 2012, Alcoa initially sold $304 of customer receivables in exchange for $50 in cash and $254 of deferred purchase price under this arrangement. Alcoa has received additional net cash funding of $200 for receivables sold ($1,258 in draws and $1,058 in repayments) since the program’s inception (no draws or repayments occurred in 2015), including $40 ($710 in draws and $670 in repayments) in 2014. As of December 31, 2015 and 2014, the deferred purchase price receivable was $249 and $356, respectively, 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 Decrease (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. In 2015 and 2014, the gross cash outflows and inflows associated with the deferred purchase price receivable were $6,893 and $7,001, respectively, and $7,381 and $7,272, respectively. The gross amount of receivables sold and total cash collected under this program since its inception was $24,598 and $24,099 respectively. Alcoa services the customer receivables for the financial institutions at market rates; therefore, no servicing asset or liability was recorded. Allowance for Doubtful Accounts The following table details the changes in the allowance for doubtful accounts related to customer receivables and other receivables: Customer receivables Other receivables December 31, 2015 2014 2013 2015 2014 2013 Balance at beginning of year $ 14 $ 20 $ 39 $ 41 $ 47 $ 74 Provision for doubtful accounts 5 2 3 8 8 29 Write off of uncollectible accounts (4 ) (3 ) (19 ) (2 ) (4 ) (39 ) Recoveries of prior write-offs - (2 ) (3 ) 1 (7 ) (10 ) Other (2 ) (3 ) - 1 (3 ) (7 ) Balance at end of year $ 13 $ 14 $ 20 $ 49 $ 41 $ 47 |
Interest Cost Components
Interest Cost Components | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Interest Cost Components | V. Interest Cost Components 2015 2014 2013 Amount charged to expense $ 498 $ 473 $ 453 Amount capitalized 57 56 99 $ 555 $ 529 $ 552 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | W. Pension and Other Postretirement Benefits Alcoa maintains pension plans covering most U.S. employees and certain employees in foreign locations. Pension benefits generally depend on length of service, job grade, and remuneration. Substantially all benefits are paid through pension trusts that are sufficiently funded to ensure that all plans can pay benefits to retirees as they become due. Most salaried and non-bargaining hourly U.S. employees hired after March 1, 2006 participate in a defined contribution plan instead of a defined benefit plan. On June 6, 2014, the United Steelworkers ratified a new five-year labor agreement covering approximately 6,100 employees at 10 U.S. locations; the previous labor agreement expired on May 15, 2014. In 2014, as a result of the preparation for and ratification of the new agreement, Alcoa recognized $18 ($12 after-tax) in Cost of goods sold on the accompanying Statement of Consolidated Operations for, among other items, business contingency costs and a one-time signing bonus for employees. Additionally, as a result of the provisions of the new labor agreement, a significant plan amendment was adopted by one of Alcoa’s U.S. pension plans. Accordingly, this plan was required to be remeasured, and through this process, the discount rate was updated from 4.80% at December 31, 2013 to 4.25% at May 31, 2014. The plan remeasurement resulted in an increase to both Alcoa’s pension liability of $100 and a combination of the plan’s unrecognized net actuarial loss and prior service cost (included in Accumulated other comprehensive loss) of $65 (after-tax). The plan remeasurement also resulted in a $13 decrease to 2014 net periodic benefit cost. Alcoa also maintains health care and life insurance postretirement benefit plans covering eligible U.S. retired employees and certain retirees from foreign locations. Generally, the medical plans are unfunded and pay a percentage of medical expenses, reduced by deductibles and other coverage. Life benefits are generally provided by insurance contracts. Alcoa retains the right, subject to existing agreements, to change or eliminate these benefits. All salaried and certain non-bargaining hourly U.S. employees hired after January 1, 2002 and certain bargaining hourly U.S. employees hired after July 1, 2010 are not eligible for postretirement health care benefits. All salaried and certain hourly U.S. employees that retire on or after April 1, 2008 are not eligible for postretirement life insurance benefits. Effective January 1, 2015, Alcoa no longer offers postretirement health care benefits to Medicare-eligible, primarily non-bargaining, U.S. retirees through Company-sponsored plans. Qualifying retirees (hired prior to January 1, 2002), both current and future, may access these benefits in the marketplace by purchasing coverage directly from insurance carriers. This change resulted in the adoption of a significant plan amendment by certain Alcoa U.S. postretirement benefit plans in August 2014. Accordingly, these plans were required to be remeasured, and through this process, the discount rate was updated from 4.80% at December 31, 2013 to 4.15% at August 31, 2014. The remeasurement of the plans resulted in a decrease to both Alcoa’s other postretirement benefits liability of $90 and a combination of the plans’ unrecognized net actuarial loss and prior service benefit (included in Accumulated other comprehensive loss) of $59 (after-tax). The remeasurement of the plans also resulted in a $7 decrease to 2014 net periodic benefit cost. The funded status of all of Alcoa’s pension and other postretirement benefit plans are measured as of December 31 each calendar year. Obligations and Funded Status Pension benefits Other December 31, 2015 2014 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 15,019 $ 13,730 $ 2,368 $ 2,592 Service cost 187 182 14 15 Interest cost 583 640 92 114 Amendments 18 33 - (111 ) Actuarial (gains) losses (222 ) 1,552 26 16 Acquisitions (F) 188 455 48 - Divestitures (F) - (142 ) - (10 ) Settlements (72 ) (134 ) - - Curtailments (12 ) - (6 ) - Benefits paid, net of participants’ contributions (1,033 ) (1,051 ) (235 ) (264 ) Medicare Part D subsidy receipts - - 15 19 Foreign currency translation impact (409 ) (246 ) (3 ) (3 ) Benefit obligation at end of year* $ 14,247 $ 15,019 $ 2,319 $ 2,368 Change in plan assets Fair value of plan assets at beginning of year $ 11,717 $ 10,580 $ - $ - Actual return on plan assets 24 1,764 - - Employer contributions 479 507 - - Participants’ contributions 21 25 - - Benefits paid (1,015 ) (1,038 ) - - Administrative expenses (55 ) (54 ) - - Acquisitions (F) 164 431 - - Divestitures (F) - (164 ) - - Settlements (72 ) (134 ) - - Foreign currency translation impact (335 ) (200 ) - - Fair value of plan assets at end of year* $ 10,928 $ 11,717 $ - $ - Funded status* $ (3,319 ) $ (3,302 ) $ (2,319 ) $ (2,368 ) Less: Amounts attributed to joint venture partners (30 ) (33 ) - - Net funded status $ (3,289 ) $ (3,269 ) $ (2,319 ) $ (2,368 ) Amounts recognized in the Consolidated Balance Sheet consist of: Noncurrent assets $ 44 $ 53 $ - $ - Current liabilities (35 ) (31 ) (213 ) (213 ) Noncurrent liabilities (3,298 ) (3,291 ) (2,106 ) (2,155 ) Net amount recognized $ (3,289 ) $ (3,269 ) $ (2,319 ) $ (2,368 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss $ 5,351 $ 5,379 $ 398 $ 392 Prior service cost (benefit) 70 102 (106 ) (144 ) Total, before tax effect 5,421 5,481 292 248 Less: Amounts attributed to joint venture partners 38 43 - - Net amount recognized, before tax effect $ 5,383 $ 5,438 $ 292 $ 248 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss consist of: Net actuarial loss $ 440 $ 572 $ 23 $ 15 Amortization of accumulated net actuarial loss (468 ) (391 ) (17 ) (13 ) Prior service (benefit) cost (7 ) 26 1 (112 ) Amortization of prior service (cost) benefit (25 ) (18 ) 37 25 Total, before tax effect (60 ) 189 44 (85 ) Less: Amounts attributed to joint venture partners (5 ) 5 - - Net amount recognized, before tax effect $ (55 ) $ 184 $ 44 $ (85 ) * At December 31, 2015, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $10,983, $8,077, and $(2,906), respectively. At December 31, 2014, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $11,404, $8,576, and $(2,828), respectively. Pension Plan Benefit Obligations Pension benefits 2015 2014 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows: Projected benefit obligation $ 14,247 $ 15,019 Accumulated benefit obligation 13,832 14,553 The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets was as follows: Projected benefit obligation 14,146 14,151 Fair value of plan assets 10,786 10,777 The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets was as follows: Accumulated benefit obligation 12,510 13,112 Fair value of plan assets 9,512 10,144 Components of Net Periodic Benefit Cost Pension benefits (1) Other postretirement benefits (2) 2015 2014 2013 2015 2014 2013 Service cost $ 175 $ 166 $ 194 $ 14 $ 15 $ 17 Interest cost 577 630 602 92 114 114 Expected return on plan assets (753 ) (782 ) (788 ) - - - Recognized net actuarial loss 468 391 489 17 13 35 Amortization of prior service cost (benefit) 16 18 19 (37 ) (25 ) (18 ) Settlements (3) 16 26 9 - - - Curtailments (4) 9 - 6 (4 ) - - Special termination benefits (5) 16 - 77 - - - Net periodic benefit cost (6) $ 524 $ 449 $ 608 $ 82 $ 117 $ 148 (1) In 2015, 2014, and 2013, net periodic benefit cost for U.S pension plans was $423, $335, and $391, respectively. (2) In 2015, 2014, and 2013, net periodic benefit cost for other postretirement benefits reflects a reduction of $34, $38, and $55, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D. (3) In 2015, settlements were due to workforce reductions (see Note D) and the payment of lump sum benefits and/or purchases of annuity contracts. In 2014, settlements were due to workforce reductions (see Note D). In 2013, settlements were due to the payment of lump sum benefits and/or purchases of annuity contracts. (4) In 2015 and 2013, curtailments were due to elimination of benefits or workforce reductions (see Note D). (5) In 2015 and 2013, special termination benefits were due to workforce reductions (see Note D). (6) Amounts attributed to joint venture partners are not included. Amounts Expected to be Recognized in Net Periodic Benefit Cost Pension benefits Other postretirement benefits 2016 2016 Net actuarial loss recognition 413 21 Prior service cost (benefit) recognition 15 (26 ) Assumptions Weighted average assumptions used to determine benefit obligations for U.S. pension and other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially): December 31, 2015 2014 Discount rate 4.29 % 4.00 % Rate of compensation increase 3.5 3.5 The discount rate is determined using a Company-specific yield curve model (above-median) developed with the assistance of an external actuary. The cash flows of the plans’ projected benefit obligations are discounted using a single equivalent rate derived from yields on high quality corporate bonds, which represent a broad diversification of issuers in various sectors, including finance and banking, consumer products, transportation, insurance, and pharmaceutical, among others. The yield curve model parallels the plans’ projected cash flows, which have an average duration of 10 years, and the underlying cash flows of the bonds included in the model exceed the cash flows needed to satisfy the Company’s plans’ obligations multiple times. The rate of compensation increase is based upon actual experience. For 2016, the rate of compensation increase will be 3.5%, which approximates the five-year average. Weighted average assumptions used to determine net periodic benefit cost for U.S. pension and other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially): 2015 2014 2013 Discount rate* 4.00 % 4.80 % 4.15 % Expected long-term rate of return on plan assets 7.75 8.00 8.50 Rate of compensation increase 3.50 3.50 3.50 * In all periods presented, the respective discount rates were used to determine net periodic benefit cost for most U.S. pension plans for the full annual period. However, the discount rates for a limited number of plans were updated during 2015, 2014, and 2013 to reflect the remeasurement of these plans due to new union labor agreements, settlements, and/or curtailments. The updated discount rates used were not significantly different from the discount rates presented. In conjunction with the annual measurement of the funded status of Alcoa’s pension and other postretirement benefit plans at December 31, 2015, management elected to change the manner in which the interest cost component of net periodic benefit cost will be determined in 2016 and beyond. Previously, the interest cost component was determined by multiplying the single equivalent rate described above and the aggregate discounted cash flows of the plans’ projected benefit obligations. Under the new methodology, the interest cost component will be determined by aggregating the product of the discounted cash flows of the plans’ projected benefit obligations for each year and an individual spot rate (referred to as the “spot rate” approach). This change will result in a lower interest cost component of net periodic benefit cost under the new methodology compared to the previous methodology of approximately $100 ($65 after-tax) in 2016. Management believes this new methodology, which represents a change in an accounting estimate, is a better measure of the interest cost as each year’s cash flows are specifically linked to the interest rates of bond payments in the same respective year. The expected long-term rate of return on plan assets is generally applied to a five-year market-related value of plan assets (a four-year average or the fair value at the plan measurement date is used for certain non-U.S. plans). The process used by management to develop this assumption is one that relies on a combination of historical asset return information and forward-looking returns by asset class. As it relates to historical asset return information, management focuses on the annual, 10-year moving, and 20-year moving averages when developing this assumption. Management also incorporates expected future returns on current and planned asset allocations using information from various external investment managers and consultants, as well as management’s own judgment. For 2015, 2014, and 2013, the expected long-term rate of return used by management was based on the prevailing and planned strategic asset allocations, as well as estimates of future returns by asset class. These rates fell within the respective range of the 20-year moving average of actual performance and the expected future return developed by asset class. In 2015, the decrease of 25 basis points in the expected long-term rate of return was due to a decrease in the 20-year moving average of actual performance. For 2016, management anticipates that 7.75% will be the expected long-term rate of return. Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially): 2015 2014 2013 Health care cost trend rate assumed for next year 5.5 % 5.5 % 5.5 % Rate to which the cost trend rate gradually declines 4.5 % 4.5 % 4.5 % Year that the rate reaches the rate at which it is assumed to remain 2019 2018 2017 The assumed health care cost trend rate is used to measure the expected cost of gross eligible charges covered by Alcoa’s other postretirement benefit plans. For 2016, a 5.5% trend rate will be used, reflecting management’s best estimate of the change in future health care costs covered by the plans. The plans’ actual annual health care cost trend experience over the past three years has ranged from 4.0%. to 9.6% Management does not believe this three-year range is indicative of expected increases for future health care costs over the long-term. Assumed health care cost trend rates have an effect on the amounts reported for the health care plan. A one-percentage point change in these assumed rates would have the following effects: 1% increase 1% Effect on other postretirement benefit obligations $ 126 $ (113 ) Effect on total of service and interest cost components 5 (5 ) Plan Assets Alcoa’s pension plans’ investment policy and weighted average asset allocations at December 31, 2015 and 2014, by asset class, were as follows: Plan assets Asset class Policy range 2015 2014 Equities 20–55 % 30 % 33 % Fixed income 25–55 % 43 45 Other investments 15–35 % 27 22 Total 100 % 100 % The principal objectives underlying the investment of the pension plans’ assets are to ensure that Alcoa can properly fund benefit obligations as they become due under a broad range of potential economic and financial scenarios, maximize the long-term investment return with an acceptable level of risk based on such obligations, and broadly diversify investments across and within various asset classes to protect asset values against adverse movements. Specific objectives for long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities and achieving risk factor diversification across the balance of the asset portfolio. A portion of the assets are matched to the interest rate profile of the benefit obligation through long duration fixed income investments and exposure to broad equity risk has been decreased and diversified through investments in discretionary and systematic macro hedge funds, long/short equity hedge funds, and global and emerging market equities. Investments are further diversified by strategy, asset class, geography, and sector to enhance returns and mitigate downside risk. A large number of external investment managers are used to gain broad exposure to the financial markets and to mitigate manager-concentration risk. Investment practices comply with the requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and other applicable laws and regulations. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, the use of derivative instruments is not significant when compared to the overall investment portfolio. The following section describes the valuation methodologies used by the trustees to measure the fair value of pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note X for the definition of fair value and a description of the fair value hierarchy). Equities. Fixed income. Other investments. The fair value methods described above may not be indicative of net realizable value or reflective of future fair values. Additionally, while Alcoa believes the valuation methods used by the plans’ trustees are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table presents the fair value of pension plan assets classified under the appropriate level of the fair value hierarchy: December 31, 2015 Level 1 Level 2 Level 3 Total Equities: Equity securities $ 826 $ 929 $ 170 $ 1,925 Long/short equity hedge funds - - 932 932 Private equity - - 466 466 $ 826 $ 929 $ 1,568 $ 3,323 Fixed income: Intermediate and long duration government/credit $ 2,496 $ 1,255 $ - $ 3,751 Other - 952 - 952 $ 2,496 $ 2,207 $ - $ 4,703 Other investments: Real estate $ 158 $ 16 $ 562 $ 736 Discretionary and systematic macro hedge funds - - 1,671 1,671 Other 126 - 367 493 $ 284 $ 16 $ 2,600 $ 2,900 Total* $ 3,606 $ 3,152 $ 4,168 $ 10,926 December 31, 2014 Level 1 Level 2 Level 3 Total Equities Equity securities $ 1,156 $ 1,131 $ 176 $ 2,463 Long/short equity hedge funds - - 963 963 Private equity - - 543 543 $ 1,156 $ 1,131 $ 1,682 $ 3,969 Fixed income: Intermediate and long duration government/credit $ 2,998 $ 1,900 $ - $ 4,898 Other - 413 - 413 $ 2,998 $ 2,313 $ - $ 5,311 Other investments: Real estate $ 152 $ 18 $ 459 $ 629 Discretionary and systematic macro hedge funds - - 1,408 1,408 Other 140 - 376 516 $ 292 $ 18 $ 2,243 $ 2,553 Total** $ 4,446 $ 3,462 $ 3,925 $ 11,833 * As of December 31, 2015, the total fair value of pension plans’ assets excludes a net receivable of $2 which represents securities sold not yet settled plus interest and dividends earned on various investments. ** As of December 31, 2014, the total fair value of pension plans’ assets excludes a net payable of $116, which represents assets related to divested businesses (see Note F) to be transferred to the buyers’ pension plans less securities sold not yet settled plus interest and dividends earned on various investments. Pension plan assets classified as Level 3 in the fair value hierarchy represent investments in which the trustees have used significant unobservable inputs in the valuation model. The following table presents a reconciliation of activity for such investments: 2015 2014 Balance at beginning of year $ 3,925 $ 3,421 Realized gains 118 180 Unrealized gains 94 146 Purchases 640 868 Sales (481 ) (768 ) Issuances - - Settlements - - Acquisitions (F) 12 117 Foreign currency translation impact (140 ) (39 ) Transfers in and/or out of Level 3* - - Balance at end of year $ 4,168 $ 3,925 * In 2015 and 2014, there were no transfers of financial instruments into or out of Level 3. Funding and Cash Flows It is Alcoa’s policy to fund amounts for pension plans sufficient to meet the minimum requirements set forth in applicable country benefits laws and tax laws, including the Pension Protection Act of 2006; the Worker, Retiree, and Employer Recovery Act of 2008; the Moving Ahead for Progress in the 21 st Century Act of 2012; the Highway and Transportation Funding Act of 2014; and the Bipartisan Budget Act of 2015 for U.S. plans. From time to time, Alcoa contributes additional amounts as deemed appropriate. In 2015 and 2014, cash contributions to Alcoa’s pension plans were $470 and $501. The minimum required contribution to pension plans in 2016 is estimated to be $300, of which $218 is for U.S. plans. Benefit payments expected to be paid to pension and other postretirement benefit plans’ participants and expected Medicare Part D subsidy receipts are as follows: Year ended December 31, Pension Gross Other Medicare Part D Net Other 2016 $ 910 $ 230 $ 15 $ 215 2017 900 225 15 210 2018 910 225 15 210 2019 910 220 15 205 2020 920 220 20 200 2021 through 2025 4,650 975 80 895 $ 9,200 $ 2,095 $ 160 $ 1,935 Defined Contribution Plans Alcoa sponsors savings and investment plans in several countries, including the United States and Australia. Expenses related to these plans were $142 in 2015, $151 in 2014, and $149 in 2013. In the United States, employees may contribute a portion of their compensation to the plans, and Alcoa matches a portion of these contributions in equivalent form of the investments elected by the employee. Prior to January 1, 2014, Alcoa’s match was mostly in company stock. |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Other Financial Instruments | X. Derivatives and Other Financial Instruments Fair Value. • Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3—Inputs that are both significant to the fair value measurement and unobservable. Derivatives. Alcoa’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. A number of Alcoa’s aluminum, energy, and foreign exchange contracts are classified as Level 1 and an interest rate contract is classified as Level 2 under the fair value hierarchy. These energy, foreign exchange, and interest rate contracts are not material to Alcoa’s Consolidated Financial Statements for all periods presented except as follows for two foreign exchange contracts. Alcoa had a forward contract to purchase $53 (C$58) to mitigate the foreign currency risk related to a Canadian-denominated loan, which was repaid on August 31, 2014 upon maturity. The forward contract expired on August 5, 2014 and a gain of $1 was recognized in Other expenses, net on the accompanying Statement of Consolidated Operations in 2014. Also, Alcoa had 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 Other expenses, net on the accompanying Statement of Consolidated Operations in 2014. For the aluminum contracts classified as Level 1, the total fair value of derivatives recorded as assets and liabilities was $8 and $58 and $2 and $31 at December 31, 2015 and 2014, respectively. These contracts were entered into to either hedge forecasted sales or purchases of aluminum in order to manage the associated aluminum price risk. Certain of these contracts are designated as hedging instruments, either fair value or cash flow, and the remaining are not designated as such. Combined, Alcoa recognized a net gain of $19, a net loss of $15, and a net gain of $4 in Sales on the accompanying Statement of Consolidated Operations in 2015, 2014, and 2013, respectively, related to these aluminum contracts. Additionally, for the contracts designated as cash flow hedges, Alcoa recognized an unrealized gain of $9 in Other comprehensive loss in 2013. In addition to the Level 1 and 2 derivative instruments described above, Alcoa has nine derivative instruments classified as Level 3 under the fair value hierarchy. These instruments are composed of seven embedded aluminum derivatives, an energy contract, and an embedded credit derivative, all of which relate to energy supply contracts associated with eight smelters and three refineries. Five of the embedded aluminum derivatives and the energy contract were designated as cash flow hedging instruments and two of the embedded aluminum derivatives and the embedded credit derivative were not designated as hedging instruments. The following section describes the valuation methodologies used by Alcoa to measure its Level 3 derivative instruments at fair value. Derivative instruments classified as Level 3 in the fair value hierarchy represent those in which management has used at least one significant unobservable input in the valuation model. Alcoa uses a discounted cash flow model to fair value all Level 3 derivative instruments. Where appropriate, the description below includes the key inputs to those models and any significant assumptions. These valuation models are reviewed and tested at least on an annual basis. Inputs in the valuation models for Level 3 derivative instruments are composed of the following: (i) quoted market prices (e.g., aluminum prices on the 10-year London Metal Exchange (LME) forward curve and energy prices), (ii) significant other observable inputs (e.g., information concerning time premiums and volatilities for certain option type embedded derivatives and regional premiums for aluminum contracts), and (iii) unobservable inputs (e.g., aluminum and energy prices beyond those quoted in the market). For periods beyond the term of quoted market prices for aluminum, Alcoa estimates the price of aluminum by extrapolating the 10-year LME forward curve. Additionally, for periods beyond the term of quoted market prices for energy, management has developed a forward curve based on independent consultant market research. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence (Level 2). In the absence of such evidence, management’s best estimate is used (Level 3). If a significant input that is unobservable in one period becomes observable in a subsequent period, the related asset or liability would be transferred to the appropriate classification (Level 1 or 2) in the period of such change (there were no such transfers in the periods presented). Alcoa has embedded derivatives in two power contracts that index the price of power to the LME price of aluminum. Additionally, in late 2014, Alcoa renewed three power contracts, each of which contain an embedded derivative that indexes the price of power to the LME price of aluminum plus the Midwest premium. The embedded derivatives in these five power contracts are primarily valued using observable market prices; however, due to the length of the contracts, the valuation models also require management to estimate the long-term price of aluminum based upon an extrapolation of the 10-year LME forward curve and/or 5-year Midwest premium curve. Significant increases or decreases in the actual LME price beyond 10 years and/or the Midwest premium beyond 5 years would result in a higher or lower fair value measurement. An increase in actual LME price and/or the Midwest premium over the inputs used in the valuation models will result in a higher cost of power and a corresponding decrease to the derivative asset or increase to the derivative liability. The embedded derivatives have been designated as cash flow hedges of forward sales of aluminum. Unrealized gains and losses were included in Other comprehensive loss on the accompanying Consolidated Balance Sheet while realized gains and losses were included in Sales on the accompanying Statement of Consolidated Operations. Also, Alcoa has a power contract separate from above that contains an LME-linked embedded derivative. 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 corresponding decrease to the derivative asset. This embedded derivative did not qualify for hedge accounting treatment. Unrealized gains and losses from the embedded derivative were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations as electricity purchases were made under the contract. At the time this derivative asset was recognized, an equivalent amount was recognized as a deferred credit in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet (see Note L). This 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 contract. Alcoa had a similar power contract and related embedded derivative associated with another smelter and rolling mill combined; however, the contract and related derivative instrument matured in July 2014. Additionally, Alcoa has a natural gas supply contract, which has an LME-linked ceiling. This embedded derivative 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. This embedded derivative did not qualify for hedge accounting treatment. Unrealized gains and losses from the embedded derivative were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations as gas purchases were made under the contract. Furthermore, Alcoa has 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. 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 a higher cost of power and a corresponding increase in the derivative liability. This embedded derivative did not qualify for hedge accounting treatment. Unrealized gains and losses were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations as electricity purchases were made under the contract. Finally, Alcoa has a derivative contract that will hedge the anticipated power requirements at one of its smelters once the existing power contract expires in September 2016. Beyond the term where market information is available, management has developed a forward curve, for valuation purposes, based on independent consultant market research. Significant increases or decreases in the power market may result in a higher or lower fair value measurement. Lower prices in the power market would cause a decrease in the derivative asset. The derivative contract has been designated as a cash flow hedge of future purchases of electricity. Unrealized gains and losses on this contract were recorded in Other comprehensive loss on the accompanying Consolidated Balance Sheet. Once the designated hedge period begins in September 2016, realized gains and losses will be recorded in Cost of goods sold as electricity purchases are made under the power contract. Alcoa had a similar contract related to another smelter once the prior existing contract expired 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. The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative contracts: Fair value at December 31, 2015 Unobservable input Range ($in full amounts) Assets: Embedded aluminum derivatives $ 1,060 Price of aluminum beyond forward curve Aluminum: $2,060 per metric ton in 2026 to $2,337 per metric ton in 2029 (two contracts) and $2,534 per metric ton in 2036 (one contract) Midwest premium: $0.0940 per pound in 2021 to $0.0940 per pound in 2029 (two contracts) and 2036 (one contract) Embedded aluminum derivative 69 Interrelationship of future aluminum prices, foreign currency exchange rates, and the U.S. consumer price index (CPI) Aluminum: $1,525 per metric ton in January 2016 to $1,550 per metric ton in September 2016 Foreign currency: A$1 = $0.73 in 2016 (January through September) CPI: 1982 base year of 100 and 233 in January 2016 to 236 in September 2016 Embedded aluminum derivative 6 Interrelationship of LME price to overall energy price Aluminum: $1,512 per metric ton in 2016 to $1,686 per metric ton in 2019 Embedded aluminum derivative - Interrelationship of future aluminum and oil prices Aluminum: $1,525 per metric ton in 2016 to $1,652 per metric ton in 2018 Oil: $38 per barrel in 2016 to $53 per barrel in 2018 Liabilities: Embedded aluminum derivative 169 Price of aluminum beyond forward curve Aluminum: $2,060 per metric ton in 2026 to $2,128 per metric ton in 2027 Embedded credit derivative 35 Credit spread between Alcoa and counterparty 3.41% to 4.29% Energy contract 2 Price of electricity beyond forward curve Electricity: $45 per megawatt hour in 2019 to $121 per megawatt hour in 2036 * The fair value of the energy contract reflected as a liability in this table is lower by $2 compared to the respective amount reflected in the Level 3 tables presented below. This is due to the fact that this contract is in a liability position for the current portion but is in an asset position for the noncurrent portion, and is reflected as such on the accompanying Consolidated Balance Sheet. However, this derivative is reflected as a net liability in the above table for purposes of presenting the assumptions utilized to measure the fair value of the derivative instrument in its entirety. The fair values of Level 3 derivative instruments recorded as assets and liabilities in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives December 31, 2015 December 31, 2014 Derivatives designated as hedging instruments: Prepaid expenses and other current assets: Embedded aluminum derivatives $ 72 $ 24 Other noncurrent assets: Embedded aluminum derivative 994 73 Energy contract 2 2 Total derivatives designated as hedging instruments $ 1,068 $ 99 Derivatives not designated as hedging instruments: Prepaid expenses and other current assets: Embedded aluminum derivatives $ 69 $ 98 Other noncurrent assets: Embedded aluminum derivatives - 71 Total derivatives not designated as hedging instruments $ 69 $ 169 Total Asset Derivatives $ 1,137 $ 268 Liability Derivatives Derivatives designated as hedging instruments: Other current liabilities: Embedded aluminum derivative $ 9 $ 24 Energy contract 4 - Other noncurrent liabilities and deferred credits: Embedded aluminum derivatives 160 352 Total derivatives designated as hedging instruments $ 173 $ 376 Derivatives not designated as hedging instruments: Other current liabilities: Embedded credit derivative $ 6 $ 2 Other noncurrent liabilities and deferred credits: Embedded credit derivative 29 16 Total derivatives not designated as hedging instruments $ 35 $ 18 Total Liability Derivatives $ 208 $ 394 The following table shows the net fair values of the Level 3 derivative instruments at December 31, 2015 and the effect on these amounts of a hypothetical change (increase or decrease of 10%) in the market prices or rates that existed as of December 31, 2015: Fair value asset/(liability) Index change of + / - 10% Embedded aluminum derivatives $ 966 $ 340 Embedded credit derivative (35 ) 4 Energy contract (2 ) 136 The following tables present a reconciliation of activity for Level 3 derivative contracts: Assets Liabilities 2015 Embedded aluminum derivatives Energy contract Embedded aluminum derivatives Embedded credit derivative Energy contract Opening balance—January 1, 2015 $ 266 $ 2 $ 376 $ 18 $ - Total gains or losses (realized and unrealized) included in: Sales 5 - (16 ) - - Cost of goods sold (99 ) - - - - Other expenses, net (8 ) (2 ) - 17 1 Other comprehensive loss 964 1 (191 ) - 3 Purchases, sales, issuances, and settlements* - - - - - Transfers into and/or out of Level 3* - - - - - Foreign currency translation 7 1 - - - Closing balance—December 31, 2015 $ 1,135 $ 2 $ 169 $ 35 $ 4 Change in unrealized gains or losses included in earnings for derivative contracts held at December 31, 2015: Sales $ - $ - $ - $ - $ - Cost of goods sold - - - - - Other expenses, net (8 ) (2 ) - (17 ) 1 * In 2015, there were no purchases, sales, issuances or settlements of Level 3 derivative instruments. Additionally, there were no transfers of derivative instruments into or out of Level 3. Assets Liabilities 2014 Embedded aluminum derivatives Energy contract Embedded aluminum derivatives Embedded credit derivative Opening balance—January 1, 2014 $ 349 $ 6 $ 410 $ 21 Total gains or losses (realized and unrealized) included in: Sales (1 ) - (27 ) - Cost of goods sold (163 ) - - (1 ) Other expenses, net (15 ) - - (2 ) Other comprehensive loss 71 (4 ) (7 ) - Purchases, sales, issuances, and settlements* - - - - Transfers into and/or out of Level 3* - - - - Foreign currency translation 23 - - - Closing balance—December 31, 2014 $ 266 $ 2 $ 376 $ 18 Change in unrealized gains or losses included in earnings for derivative contracts held at December 31, 2014: Sales $ - $ - $ - $ - Cost of goods sold - - - - Other expenses, net (15 ) - - (2 ) * In November 2014, three new embedded derivatives were contained within renewed power contracts; however, there was no amount included for issuances as the fair value on the date of issuance was zero. There were no purchases, sales or settlements of Level 3 derivative instruments. Additionally, there were no transfers of derivative instruments into or out of Level 3. Derivatives Designated As Hedging Instruments—Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of unrealized gains or losses on the derivative is reported as a component of other comprehensive income (OCI). Realized gains or losses on the derivative are reclassified from OCI into earnings in the same period or periods during which the hedged transaction impacts earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized directly in earnings immediately. Alcoa has five Level 3 embedded aluminum derivatives and one Level 3 energy contract (a second one was terminated in early 2013) that have been designated as cash flow hedges as follows. Embedded aluminum derivatives. In 2015, 2014, and 2013, Alcoa recognized an unrealized gain of $1,155, $78, and $190, respectively, in Other comprehensive loss related to these five derivative instruments. Additionally, Alcoa reclassified a realized loss of $21, $28, and $29 from Accumulated other comprehensive loss to Sales in 2015, 2014, and 2013, respectively. There was no ineffectiveness related to these five derivative instruments in 2015, 2014, and 2013. Assuming market rates remain constant with the rates at December 31, 2015, a realized gain of $45 is expected to be recognized in Sales over the next 12 months. Energy contract. Derivatives Not Designated As Hedging Instruments Alcoa has two Level 3 embedded aluminum derivatives and one Level 3 embedded credit derivative that do not qualify for hedge accounting treatment. As such, gains and losses related to the changes in fair value of these instruments are recorded directly in earnings. In 2015, 2014, and 2013, Alcoa recognized a loss of $25, a loss of $13, and a gain of $36, respectively, in Other expenses (income), net, of which a loss of $8, a loss of $15, and a gain of $28, respectively, related to the two embedded aluminum derivatives and a loss of $17, a gain of $2, and a gain of $8, respectively, related to the embedded credit derivative. 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. December 31, 2015 2014 Carrying Fair Carrying Fair Cash and cash equivalents $ 1,919 $ 1,919 $ 1,877 $ 1,877 Restricted cash 37 37 20 20 Noncurrent receivables 17 17 17 17 Available-for-sale securities 193 193 153 153 Short-term borrowings 38 38 54 54 Commercial paper - - - - Long-term debt due within one year 21 21 29 29 Contingent payment related to an acquisition 130 130 130 130 Long-term debt, less amount due within one year 9,044 8,922 8,769 9,445 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. Noncurrent receivables. Available-for-sale securities. Contingent payment related to an acquisition (see Note F). Long-term debt due within one year and Long-term debt, less amount due within one year. |
Proposed Separation Transaction
Proposed Separation Transaction | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Proposed Separation Transaction | Y. Proposed Separation Transaction On September 28, 2015, Alcoa announced that its Board of Directors approved a plan to separate into two independent, publicly-traded companies. One company will comprise the Alumina and Primary Metals segments and the other company will comprise the Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions segments. Alcoa is targeting to complete the separation in the second half of 2016. The transaction is subject to a number of conditions, including, but not limited to, final approval by Alcoa’s Board of Directors, receipt of a favorable opinion of legal counsel with respect to the tax-free nature of the transaction for U.S. federal income tax purposes, and the effectiveness of a Form 10 registration statement to be filed with the U.S. Securities and Exchange Commission. Upon completion of the separation, Alcoa shareholders will own all of the outstanding shares of both companies. Alcoa may, at any time and for any reason until the proposed transaction is complete, abandon the separation plan or modify or change its terms. In 2015, Alcoa recognized $24 (pre- and after-tax) in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations for costs related to the proposed separation transaction. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Z. 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, except as described below. On January 26, 2016, the European Court of Justice issued a decision in connection with legal proceedings related to whether the extension of energy tariffs by Italy to Alcoa constituted unlawful state aid (see European Commission Matters in Note N). In addition, a separate but related matter was also updated as a result of the aforementioned decision (see Other Matters in the Litigation section of Note N). |
Quarterly Data
Quarterly Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data | Supplemental Financial Information (unaudited) Quarterly Data (in millions, except per-share amounts) First Second Third Fourth* Year 2015 Sales $ 5,819 $ 5,897 $ 5,573 $ 5,245 $ 22,534 Net income (loss) attributable to Alcoa $ 195 $ 140 $ 44 $ (701 ) $ (322 ) Earnings per share attributable to Alcoa common shareholders**: Basic $ 0.15 $ 0.10 $ 0.02 $ (0.55 ) $ (0.31 ) Diluted $ 0.14 $ 0.10 $ 0.02 $ (0.55 ) $ (0.31 ) 2014 Sales $ 5,454 $ 5,836 $ 6,239 $ 6,377 $ 23,906 Net (loss) income attributable to Alcoa $ (178 ) $ 138 $ 149 $ 159 $ 268 Earnings per share attributable to Alcoa common shareholders**: Basic $ (0.16 ) $ 0.12 $ 0.13 $ 0.12 $ 0.21 Diluted $ (0.16 ) $ 0.12 $ 0.12 $ 0.11 $ 0.21 * In the fourth quarter of 2015, Alcoa recorded restructuring and other charges of $735 ($507 after-tax and noncontrolling interest), which were primarily related to closures and/or curtailments of a number of smelters and refineries (see Note D) and a charge for legal matters in Italy (see Note N); a discrete income tax charge of $190 for valuation allowances on certain deferred tax assets in the United States and Iceland (see Note T); and an impairment of goodwill of $25 (see Goodwill and Other Intangible Assets in Notes A and E). In the fourth quarter of 2014, Alcoa recorded a net loss of $332 ($163 after-tax and noncontrolling interest) related to the divestiture of four operations (see Notes D and F). ** Per share amounts are calculated independently for each period presented; therefore, the sum of the quarterly per share amounts may not equal the per share amounts for the year. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. |
Principles of Consolidation | Principles of Consolidation. Management also evaluates whether an Alcoa entity or interest is a variable interest entity and whether Alcoa is the primary beneficiary. Consolidation is required if both of these criteria are met. Alcoa does not have any variable interest entities requiring consolidation. |
Related Party Transactions | Related Party Transactions. |
Cash Equivalents | Cash Equivalents. |
Inventory Valuation | Inventory Valuation. |
Properties, Plants, and Equipment | Properties, Plants, and Equipment. Segment Structures Machinery and equipment Alumina: Alumina refining 30 27 Bauxite mining 34 17 Primary Metals: Aluminum smelting 36 22 Power generation 31 22 Global Rolled Products 31 21 Engineered Products and Solutions 29 18 Transportation and Construction Solutions 28 19 Gains or losses from the sale of assets are generally recorded in other income or expenses (see policy below for assets classified as held for sale and discontinued operations). Repairs and maintenance are charged to expense as incurred. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable. Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the operations related to the assets (asset group) to their carrying amount. An impairment loss would be recognized when the carrying amount of the assets (asset group) exceeds the estimated undiscounted net cash flows. The amount of the impairment loss to be recorded is calculated as the excess of the carrying value of the assets (asset group) over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow (DCF) model. The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of assets also require significant judgments. |
Mineral Rights | Mineral Rights. |
Deferred Mining Costs | Deferred Mining Costs. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Alcoa has ten reporting units, of which four are included in the Engineered Products and Solutions segment and three are included in the Transportation and Construction Solutions segment. The remaining three reporting units are the Alumina segment, the Primary Metals segment (all goodwill was impaired in 2013—see below), and the Global Rolled Products segment. More than 70% of Alcoa’s total goodwill is allocated to two reporting units as follows: Alcoa Fastening Systems and Rings (AFSR) ($2,232) and Alcoa Power and Propulsion (APP) ($1,695) businesses, both of which are included in the Engineered Products and Solutions segment. These amounts include an allocation of Corporate’s goodwill. In November 2014, Alcoa acquired Firth Rixson (see Note F), and, as a result recognized $1,801 in goodwill. This amount was allocated between the AFSR and Alcoa Forgings and Extrusion reporting units, which is part of the Engineered Products and Solutions segment. In March and July 2015, Alcoa acquired TITAL and RTI, respectively, (see Note F) and recognized $118 and $240, respectively, in goodwill. The goodwill amount related to TITAL was allocated to the APP reporting unit and the amount related to RTI was allocated to Alcoa Titanium and Engineered Products, a new Alcoa reporting unit that consists solely of the acquired RTI business and is part of the Engineered Products and Solutions segment. In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the existing two-step quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform the qualitative assessment or proceeds directly to the two-step quantitative impairment test. Alcoa’s policy for its annual review of goodwill is to perform the qualitative assessment for all reporting units not subjected directly to the two-step quantitative impairment test. Generally, management will proceed directly to the two-step quantitative impairment test for two to three reporting units (based on facts and circumstances) during each annual review of goodwill. This policy will result in each of the nine reporting units with goodwill being subjected to the two-step quantitative impairment test at least once during every three-year period. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators above). These factors are then classified by the type of impact they would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions. Additionally, an assessment of the level of impact that a particular factor would have on the estimated fair value is determined using high, medium, and low weighting. Furthermore, management considers the results of the most recent two-step quantitative impairment test completed for a reporting unit and compares the weighted average cost of capital (WACC) between the current and prior years for each reporting unit. During the 2015 annual review of goodwill, management performed the qualitative assessment for seven reporting units, the Alumina segment, the four reporting units in the Engineered Products and Solutions segment, including AFSR and APP, and two reporting units in the Transportation and Construction Solutions segment. Management concluded that it was not more likely than not that the estimated fair values of the seven reporting units were less than their carrying values. As such, no further analysis was required. Under the two-step quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. Alcoa uses a DCF model to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including markets and market share, sales volumes and prices, production costs, tax rates, capital spending, discount rate, and working capital changes. Most of these assumptions vary significantly among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years. The betas used in calculating the individual reporting units’ WACC rate are estimated for each business with the assistance of valuation experts. In the event the estimated fair value of a reporting unit per the DCF model is less than the carrying value, additional analysis would be required. The additional analysis would compare the carrying amount of the reporting unit’s goodwill with the implied fair value of that goodwill, which may involve the use of valuation experts. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the fair value amounts assigned to all of the assets and liabilities of that unit as if the reporting unit was acquired in a business combination and the fair value of the reporting unit represented the purchase price. If the carrying value of goodwill exceeds its implied fair value, an impairment loss equal to such excess would be recognized, which could significantly and adversely impact reported results of operations and shareholders’ equity. During the 2015 annual review of goodwill, management proceeded directly to the two-step quantitative impairment test for two reporting units as follows: Global Rolled Products segment and the soft alloys extrusion business in Brazil (hereafter “SAE”), which is included in the Transportation and Construction Solutions segment. The estimated fair value of the Global Rolled Products segment was substantially in excess of its respective carrying value, resulting in no impairment. For SAE, the estimated fair value as determined by the DCF model was lower than the associated carrying value. As a result, management performed the second step of the impairment analysis in order to determine the implied fair value of the SAE reporting unit’s goodwill. The results of the second-step analysis showed that the implied fair value of the goodwill was zero. Therefore, in the fourth quarter of 2015, Alcoa recorded a goodwill impairment of $25. The impairment of the SAE goodwill resulted from headwinds from the recent downturn in the Brazilian economy and the continued erosion of gross margin despite the execution of cost reduction strategies. As a result of the goodwill impairment, there is no goodwill remaining for the SAE reporting unit. Goodwill impairment tests in prior years indicated that goodwill was not impaired for any of the Company’s reporting units, except for the Primary Metals segment in 2013 (see below), and there were no triggering events since that time that necessitated an impairment test. In 2013, for Primary Metals, the estimated fair value as determined by the DCF model was lower than the associated carrying value. As a result, management performed the second step of the impairment analysis in order to determine the implied fair value of Primary Metals’ goodwill. The results of the second-step analysis showed that the implied fair value of goodwill was zero. Therefore, in the fourth quarter of 2013, Alcoa recorded a goodwill impairment of $1,731 ($1,719 after noncontrolling interest). As a result of the goodwill impairment, there is no goodwill remaining for the Primary Metals reporting unit. The impairment of Primary Metals’ goodwill resulted from several causes: the prolonged economic downturn; a disconnect between industry fundamentals and pricing that has resulted in lower metal prices; and the increased cost of alumina, a key raw material, resulting from expansion of the Alumina Price Index throughout the industry. All of these factors, exacerbated by increases in discount rates, continue to place significant downward pressure on metal prices and operating margins, and the resulting estimated fair value, of the Primary Metals business. As a result, management decreased the near-term and long-term estimates of the operating results and cash flows utilized in assessing Primary Metals’ goodwill for impairment. The valuation of goodwill for the second step of the goodwill impairment analysis is considered a level 3 fair value measurement, which means that the valuation of the assets and liabilities reflect management’s own judgments regarding the assumptions market participants would use in determining the fair value of the assets and liabilities. Intangible assets with indefinite useful lives are not amortized while intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Segment Software Other intangible assets Alumina 7 15 Primary Metals 6 37 Global Rolled Products 9 14 Engineered Products and Solutions 7 31 Transportation and Construction Solutions 8 23 |
Equity Investments | Equity Investments. |
Revenue Recognition | Revenue Recognition. Alcoa periodically enters into long-term supply contracts with alumina and aluminum customers and receives advance payments for product to be delivered in future periods. These advance payments are recorded as deferred revenue, and revenue is recognized as shipments are made and title, ownership, and risk of loss pass to the customer during the term of the contracts. Deferred revenue is included in Other current liabilities and Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet. |
Environmental Matters | Environmental Matters. |
Litigation Matters | Litigation Matters. |
Asset Retirement Obligations | Asset Retirement Obligations. Certain conditional asset retirement obligations (CAROs) related to alumina refineries, aluminum smelters, and fabrication facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. A CARO is a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within Alcoa’s control. Such uncertainties exist as a result of the perpetual nature of the structures, maintenance and upgrade programs, and other factors. At the date a reasonable estimate of the ultimate settlement date can be made, Alcoa would record an ARO for the removal, treatment, transportation, storage, and/or disposal of various regulated assets and hazardous materials such as asbestos, underground and aboveground storage tanks, polychlorinated biphenyls (PCBs), various process residuals, solid wastes, electronic equipment waste, and various other materials. Such amounts may be material to the Consolidated Financial Statements in the period in which they are recorded. |
Income Taxes | Income Taxes. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Alcoa’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitation has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. |
Stock-Based Compensation | Stock-Based Compensation. Most plan participants can choose whether to receive their award in the form of stock options, stock awards, or a combination of both. This choice is made before the grant is issued and is irrevocable. |
Derivatives and Hedging | Derivatives and Hedging. Alcoa accounts for interest rate swaps related to its existing long-term debt and hedges of firm customer commitments for aluminum as fair value hedges. As a result, the fair values of the derivatives and changes in the fair values of the underlying hedged items are reported in other current and noncurrent assets and liabilities in the Consolidated Balance Sheet. Changes in the fair values of these derivatives and underlying hedged items generally offset and are recorded each period in sales or interest expense, consistent with the underlying hedged item. Alcoa accounts for hedges of foreign currency exposures and certain forecasted transactions as cash flow hedges. The fair values of the derivatives are recorded in other current and noncurrent assets and liabilities in the Consolidated Balance Sheet. The effective portions of the changes in the fair values of these derivatives are recorded in other comprehensive income and are reclassified to sales, cost of goods sold, or other income or expense in the period in which earnings are impacted by the hedged items or in the period that the transaction no longer qualifies as a cash flow hedge. These contracts cover the same periods as known or expected exposures, generally not exceeding five years. If no hedging relationship is designated, the derivative is marked to market through earnings. Cash flows from derivatives are recognized in the Statement of Consolidated Cash Flows in a manner consistent with the underlying transactions. |
Foreign Currency | Foreign Currency. |
Acquisitions | Acquisitions. |
Discontinued Operations and Assets Held For Sale | Discontinued Operations and Assets Held For Sale. For businesses classified as discontinued operations, the balance sheet amounts and results of operations are reclassified from their historical presentation to assets and liabilities of operations held for sale on the Consolidated Balance Sheet and to discontinued operations on the Statement of Consolidated Operations, respectively, for all periods presented. The gains or losses associated with these divested businesses are recorded in discontinued operations on the Statement of Consolidated Operations. The Statement of Consolidated Cash Flows is also reclassified for assets and liabilities of operations held for sale and discontinued operations for all periods presented. Additionally, segment information does not include the assets or operating results of businesses classified as discontinued operations for all periods presented. These businesses are expected to be disposed of within one year. For businesses classified as held for sale that do not qualify for discontinued operations treatment, the balance sheet and cash flow amounts are reclassified from their historical presentation to assets and liabilities of operations held for sale for all periods presented. The results of operations continue to be reported in continuing operations. The gains or losses associated with these divested businesses are recorded in restructuring and other charges on the Statement of Consolidated Operations. The segment information includes the assets and operating results of businesses classified as held for sale for all periods presented. Management expects that Alcoa will have continuing involvement with these businesses following their divestiture, primarily in the form of equity participation, or ongoing aluminum or other significant supply contracts. |
Recently Adopted Accounting Guidance | Recently Issued Accounting Guidance. In February 2015, the FASB issued changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. These changes become effective for Alcoa on January 1, 2016. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. In April 2015, the FASB issued changes to the presentation of debt issuance costs. Currently, such costs are required to be presented as a deferred asset in an entity’s balance sheet and amortized into interest expense over the term of the related debt instrument. The changes require that debt issuance costs be presented in an entity’s balance sheet as a direct deduction from the carrying value of the related debt liability. The amortization of debt issuance costs remains unchanged. These changes become effective for Alcoa on January 1, 2016. In August 2015, the FASB issued an update to these changes based on an announcement of the staff of the U.S. Securities and Exchange Commission. This change provides an exception to the April 2015 FASB changes allowing debt issuance costs related to line-of-credit arrangements to continue to be presented as an asset regardless of whether there are any outstanding borrowings under such arrangement. This additional change also becomes effective for Alcoa on January 1, 2016. Management has determined that the adoption of all of these changes will result in a decrease of $58 to both Other noncurrent assets and Long-term debt, less amount due within one year on the accompanying Consolidated Balance Sheet. In July 2015, the FASB issued changes to the subsequent measurement of inventory. Currently, an entity is required to measure its inventory at the lower of cost or market, whereby market can be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The changes require that inventory be measured at the lower of cost and net realizable value, thereby eliminating the use of the other two market methodologies. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. These changes do not apply to inventories measured using LIFO (last-in, first-out) or the retail inventory method. Currently, Alcoa applies the net realizable value market option to measure non-LIFO inventories at the lower of cost or market. These changes become effective for Alcoa on January 1, 2017. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements. In May 2014, the FASB issued changes to the recognition of revenue from contracts with customers. These changes created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersede virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB deferred the effective date by one year, making these changes effective for Alcoa on January 1, 2018. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. In August 2014, the FASB issued changes to the disclosure of uncertainties about an entity’s ability to continue as a going concern. Under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Even if an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. Because there is no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related note disclosures, there is diversity in practice whether, when, and how an entity discloses the relevant conditions and events in its financial statements. As a result, these changes require an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued. Substantial doubt is defined as an indication that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that financial statements are issued. If management has concluded that substantial doubt exists, then the following disclosures should be made in the financial statements: (i) principal conditions or events that raised the substantial doubt, (ii) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, (iii) management’s plans that alleviated the initial substantial doubt or, if substantial doubt was not alleviated, management’s plans that are intended to at least mitigate the conditions or events that raise substantial doubt, and (iv) if the latter in (iii) is disclosed, an explicit statement that there is substantial doubt about the entity’s ability to continue as a going concern. These changes become effective for Alcoa for the 2016 annual period. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements. Subsequent to adoption, this guidance will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the Consolidated Financial Statements in a given reporting period. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance. In February 2015, the FASB issued changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. These changes become effective for Alcoa on January 1, 2016. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. In April 2015, the FASB issued changes to the presentation of debt issuance costs. Currently, such costs are required to be presented as a deferred asset in an entity’s balance sheet and amortized into interest expense over the term of the related debt instrument. The changes require that debt issuance costs be presented in an entity’s balance sheet as a direct deduction from the carrying value of the related debt liability. The amortization of debt issuance costs remains unchanged. These changes become effective for Alcoa on January 1, 2016. In August 2015, the FASB issued an update to these changes based on an announcement of the staff of the U.S. Securities and Exchange Commission. This change provides an exception to the April 2015 FASB changes allowing debt issuance costs related to line-of-credit arrangements to continue to be presented as an asset regardless of whether there are any outstanding borrowings under such arrangement. This additional change also becomes effective for Alcoa on January 1, 2016. Management has determined that the adoption of all of these changes will result in a decrease of approximately $58 to both Other noncurrent assets and Long-term debt, less amount due within one year on the accompanying Consolidated Balance Sheet. In July 2015, the FASB issued changes to the subsequent measurement of inventory. Currently, an entity is required to measure its inventory at the lower of cost or market, whereby market can be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The changes require that inventory be measured at the lower of cost and net realizable value, thereby eliminating the use of the other two market methodologies. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. These changes do not apply to inventories measured using LIFO (last-in, first-out) or the retail inventory method. Currently, Alcoa applies the net realizable value market option to measure non-LIFO inventories at the lower of cost or market. These changes become effective for Alcoa on January 1, 2017. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements. In May 2014, the FASB issued changes to the recognition of revenue from contracts with customers. These changes created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersede virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB deferred the effective date by one year, making these changes effective for Alcoa on January 1, 2018. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. In August 2014, the FASB issued changes to the disclosure of uncertainties about an entity’s ability to continue as a going concern. Under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Even if an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. Because there is no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related note disclosures, there is diversity in practice whether, when, and how an entity discloses the relevant conditions and events in its financial statements. As a result, these changes require an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued. Substantial doubt is defined as an indication that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that financial statements are issued. If management has concluded that substantial doubt exists, then the following disclosures should be made in the financial statements: (i) principal conditions or events that raised the substantial doubt, (ii) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, (iii) management’s plans that alleviated the initial substantial doubt or, if substantial doubt was not alleviated, management’s plans that are intended to at least mitigate the conditions or events that raise substantial doubt, and (iv) if the latter in (iii) is disclosed, an explicit statement that there is substantial doubt about the entity’s ability to continue as a going concern. These changes become effective for Alcoa for the 2016 annual period. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements. Subsequent to adoption, this guidance will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the Consolidated Financial Statements in a given reporting period. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Weighted-Average Useful Lives of Structures and Machinery and Equipment | The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Segment Structures Machinery and equipment Alumina: Alumina refining 30 27 Bauxite mining 34 17 Primary Metals: Aluminum smelting 36 22 Power generation 31 22 Global Rolled Products 31 21 Engineered Products and Solutions 29 18 Transportation and Construction Solutions 28 19 |
Weighted-Average Useful Lives of Software and Other Intangible Assets | The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Segment Software Other intangible assets Alumina 7 15 Primary Metals 6 37 Global Rolled Products 9 14 Engineered Products and Solutions 7 32 Transportation and Construction Solutions 8 23 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 for both Alcoa’s shareholders and noncontrolling interests: Alcoa Noncontrolling Interests 2015 2014 2013 2015 2014 2013 Pension and other postretirement benefits (W) Balance at beginning of period $ (3,601 ) $ (3,532 ) $ (4,063 ) $ (64 ) $ (51 ) $ (77 ) Other comprehensive (loss) income: Unrecognized net actuarial loss and prior service cost/benefit (478 ) (492 ) 281 5 (22 ) 28 Tax benefit (expense) 170 167 (88 ) (1 ) 7 (9 ) Total Other comprehensive (loss) income before reclassifications, net of tax (308 ) (325 ) 193 4 (15 ) 19 Amortization of net actuarial loss and prior service cost/benefit (1) 458 394 520 6 3 11 Tax expense (2) (160 ) (138 ) (182 ) (2 ) (1 ) (4 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (8) 298 256 338 4 2 7 Total Other comprehensive (loss) income (10 ) (69 ) 531 8 (13 ) 26 Balance at end of period $ (3,611 ) $ (3,601 ) $ (3,532 ) $ (56 ) $ (64 ) $ (51 ) Foreign currency translation Balance at beginning of period $ (846 ) $ 179 $ 1,147 $ (351 ) $ (110 ) $ 257 Other comprehensive loss (3) (1,566 ) (1,025 ) (968 ) (429 ) (241 ) (367 ) Balance at end of period $ (2,412 ) $ (846 ) $ 179 $ (780 ) $ (351 ) $ (110 ) Available-for-sale securities Balance at beginning of period $ - $ 2 $ 3 $ - $ - $ - Other comprehensive loss (4) (5 ) (2 ) (1 ) - - - Balance at end of period $ (5 ) $ - $ 2 $ - $ - $ - Cash flow hedges (X) Balance at beginning of period $ (230 ) $ (308 ) $ (489 ) $ (2 ) $ (2 ) $ (5 ) Other comprehensive income (loss): Net change from periodic revaluations 1,138 78 205 (1 ) - 4 Tax expense (340 ) (21 ) (43 ) - - (1 ) Total Other comprehensive income before reclassifications, net of tax 798 57 162 (1 ) - 3 Net amount reclassified to earnings: Aluminum contracts (5) 21 27 18 - - - Energy contracts (6) 6 - - - - - Foreign exchange contracts (5) 5 (3 ) 2 - - - Interest rate contracts (7) 1 1 2 - - - Nickel contracts (6) 2 - - - - - Sub-total 35 25 22 - - - Tax (expense) (2) (6 ) (4 ) (3 ) - - - Total amount reclassified from Accumulated other comprehensive loss, net of tax (8) 29 21 19 - - - Total Other comprehensive income (loss) 827 78 181 (1 ) - 3 Balance at end of period $ 597 $ (230 ) $ (308 ) $ (3 ) $ (2 ) $ (2 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note W). (2) These amounts were included in Provision for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (4) 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) These amounts were included in Cost of goods sold on the accompanying Statement of Consolidated Operations. (7) These amounts were included in Interest expense on the accompanying Statement of Consolidated Operations. (8) 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 7. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Carrying Value of Recorded AROs by Major Category | The following table details the carrying value of recorded AROs by major category (of which $97 and $76 was classified as a current liability as of December 31, 2015 and 2014, respectively): December 31, 2015 2014 Spent pot lining disposal $ 141 $ 170 Closure of bauxite residue areas 165 178 Mine reclamation 191 167 Demolition* 117 114 Landfill closure 30 31 Other 4 3 $ 648 $ 663 * In 2015 and 2014, AROs were recorded as a result of management’s decision to permanently shut down and demolish certain structures (see Note D). |
Schedule of Changes in Carrying Value of Recorded AROs | The following table details the changes in the total carrying value of recorded AROs: December 31, 2015 2014 Balance at beginning of year $ 663 $ 629 Accretion expense 19 25 Payments (74 ) (84 ) Liabilities incurred 96 144 Divestitures* - (20 ) Foreign currency translation and other (56 ) (31 ) Balance at end of year $ 648 $ 663 * In 2014, this amount relates to the sale of an interest in a bauxite mine and alumina refinery in Jamaica and a smelter in the United States (see Note F). |
Restructuring and Other Charg40
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges | Restructuring and other charges for each year in the three-year period ended December 31, 2015 were comprised of the following: 2015 2014 2013 Asset impairments $ 335 $ 406 $ 116 Layoff costs 299 259 201 Legal matters in Italy (N) 201 - - Net loss on divestitures of businesses (F) 161 332 - Resolution of a legal matter (N) - - 391 Other 213 199 82 Reversals of previously recorded layoff and other exit costs (14 ) (28 ) (8 ) Restructuring and other charges $ 1,195 $ 1,168 $ 782 |
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: 2015 2014 2013 Alumina $ 233 $ 287 $ 11 Primary Metals 691 553 295 Global Rolled Products 131 266 15 Engineered Products and Solutions 49 13 12 Transportation and Construction Solutions 8 10 16 Segment total 1,112 1,129 349 Corporate 83 39 433 Total restructuring and other charges $ 1,195 $ 1,168 $ 782 |
Activity and Reserve Balances for Restructuring Charges | Activity and reserve balances for restructuring charges were as follows: Layoff Other Total Reserve balances at December 31, 2012 $ 59 $ 52 $ 111 2013: Cash payments (63 ) (11 ) (74 ) Restructuring charges 201 85 286 Other* (101 ) (84 ) (185 ) Reserve balances at December 31, 2013 96 42 138 2014: Cash payments (191 ) (22 ) (213 ) Restructuring charges 259 194 453 Other* (66 ) (180 ) (246 ) Reserve balances at December 31, 2014 98 34 132 2015: Cash payments (111 ) (12 ) (123 ) Restructuring charges 299 233 532 Other* (60 ) (231 ) (291 ) Reserve balances at December 31, 2015 $ 226 $ 24 $ 250 * Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In 2015, 2014, and 2013, Other for layoff costs also included a reclassification of $35, $26, and $92, respectively, in pension and/or other postretirement benefits costs, as these obligations were included in Alcoa’s separate liability for pension and other postretirement benefits obligations (see Note W). Additionally in 2015, 2014, and 2013, Other for other exit costs also included a reclassification of the following restructuring charges: $76, $95, and $58, respectively, in asset retirement and $86, $47, and $12, respectively, in environmental obligations, as these liabilities were included in Alcoa’s separate reserves for asset retirement obligations (see Note C) and environmental remediation (see Note N). |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table details the changes in the carrying amount of goodwill: Alumina Primary Metals Global Products Engineered Products Transportation Corporate* Total Balance at December 31, 2013: Goodwill $ 9 $ 989 $ 218 $ 2,606 $ 117 $ 1,235 $ 5,174 Accumulated impairment losses - (989 ) - - (28 ) (742 ) (1,759 ) 9 - 218 2,606 89 493 3,415 Acquisitions (F) - - - 1,898 - - 1,898 Divestitures (F) (3 ) - - - - - (3 ) Translation 2 - (8 ) (46 ) (3 ) (8 ) (63 ) Balance at December 31, 2014: Goodwill 8 989 210 4,458 114 1,227 7,006 Accumulated impairment losses - (989 ) - - (28 ) (742 ) (1,759 ) 8 - 210 4,458 86 485 5,247 Acquisitions (F) - - - 261 - - 261 Divestitures (F) - - (1 ) - - - (1 ) Impairment - - - - (25 ) - (25 ) Translation (2 ) - (8 ) (59 ) (3 ) (9 ) (81 ) Balance at December 31, 2015: Goodwill 6 989 201 4,660 111 1,218 7,185 Accumulated impairment losses - (989 ) - - (53 ) (742 ) (1,784 ) 6 - 201 4,660 58 476 5,401 * As of December 31, 2015, the amount reflected in Corporate is allocated to four of Alcoa’s five reportable segments ($146 to Alumina, $59 to Global Rolled Products, $253 to Engineered Products and Solutions, and $18 to Transportation and Construction Solutions) included in the table above for purposes of impairment testing (see Note A). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the four reportable segments. |
Other Intangible Assets | Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows: December 31, 2015 Gross Accumulated Computer software $ 969 $ (801 ) Patents and licenses 135 (104 ) Other intangibles* 988 (74 ) Total amortizable intangible assets 2,092 (979 ) Indefinite-lived trade names and trademarks 45 - Total other intangible assets $ 2,137 $ (979 ) * As of December 31, 2015, Other intangibles include amounts related to the acquisitions of Firth Rixson, TITAL, and RTI (see Note F). December 31, 2014 Gross Accumulated Computer software $ 973 $ (775 ) Patents and licenses 133 (98 ) Other intangibles* 493 (35 ) Total amortizable intangible assets 1,599 (908 ) Indefinite-lived trade names and trademarks 46 - Total other intangible assets $ 1,645 $ (908 ) * As of December 31, 2014, Other intangibles include amounts related to the acquisition of Firth Rixson (see Note F). |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Firth Rixson [Member] | |
Summary of Preliminary and Final Allocation of Purchase Price by Major Asset Acquired and Liability Assumed, Amount of Goodwill Recognized and Net Present Value of Potential Earn-out | The following table represents the final allocation of the purchase price by major asset acquired and liability assumed, as well as the amount of goodwill recognized and the net present value of the potential earn-out: Assets: Receivables from customers $ 193 Inventories 227 Prepaid expenses and other current assets 22 Properties, plants, and equipment 493 Goodwill 1,801 Other noncurrent assets 758 Total assets $ 3,494 Liabilities: Accounts payable $ 162 Other current liabilities 100 Contingent consideration 130 Other noncurrent liabilities 107 Total liabilities $ 499 |
RTI [Member] | |
Summary of Preliminary and Final Allocation of Purchase Price by Major Asset Acquired and Liability Assumed, Amount of Goodwill Recognized and Net Present Value of Potential Earn-out | The following table represents the preliminary allocation of the purchase price by major asset acquired and liability assumed, as well as the amount of goodwill recognized: Assets: Cash and cash equivalents $ 302 Receivables from customers 103 Inventories 531 Prepaid expenses and other current assets 47 Properties, plants, and equipment 436 Goodwill 240 Other noncurrent assets 93 Total assets $ 1,752 Liabilities: Accounts payable $ 90 Other current liabilities 94 Long-term debt due within one year 115 Long-term debt, less amount due within one year 385 Other noncurrent liabilities 138 Total liabilities $ 822 Equity: Additional capital $ 60 Total equity $ 60 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | December 31, 2015 2014 Finished goods $ 811 $ 768 Work-in-process 1,272 1,035 Bauxite and alumina 445 578 Purchased raw materials 720 508 Operating supplies 194 193 $ 3,442 $ 3,082 |
Properties, Plants, and Equip44
Properties, Plants, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Properties, Plants, and Equipment, Net | December 31, 2015 2014 Land and land rights, including mines* $ 481 $ 548 Structures: Alumina: Alumina refining 2,387 2,750 Bauxite mining 1,054 1,403 Primary Metals: Aluminum smelting 3,567 3,725 Power generation 518 645 Global Rolled Products 1,298 1,276 Engineered Products and Solutions* 658 547 Transportation and Construction Solutions 239 239 Other 619 715 10,340 11,300 Machinery and equipment: Alumina: Alumina refining 3,709 4,165 Bauxite mining 428 524 Primary Metals: Aluminum smelting 6,831 7,210 Power generation 1,044 1,080 Global Rolled Products 5,372 5,333 Engineered Products and Solutions* 2,745 2,402 Transportation and Construction Solutions 682 669 Other 750 820 21,561 22,203 Less: accumulated depreciation, depletion, and amortization 32,382 34,051 Construction work-in-progress* 13,510 14,960 $ 14,815 $ 16,426 * As of December 31, 2015 and 2014, these line items include amounts related to the acquisitions of Firth Rixson, TITAL, and/or RTI (see Note F). |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Schedule of Investments | December 31, 2015 2014 Equity investments $ 1,476 $ 1,780 Other investments 209 164 $ 1,685 $ 1,944 |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Noncurrent Assets | December 31, 2015 2014 Intangibles, net (E) $ 1,158 $ 737 Fair value of derivative contracts (X) 1,008 163 Cash surrender value of life insurance 492 506 Gas supply prepayment (N) 288 - Prepaid gas transmission contract (N) 268 295 Value-added tax receivable 233 294 Deferred mining costs, net 203 209 Unamortized debt expense 58 65 Prepaid pension benefit (W) 44 53 Advance related to European Commission Matter in Italy (N) - 111 Other 254 326 $ 4,006 $ 2,759 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-Term Debt. December 31, 2015 2014 5.55% Notes, due 2017 $ 750 $ 750 6.50% Bonds, due 2018 250 250 6.75% Notes, due 2018 750 750 5.72% Notes, due 2019 750 750 1.63% Convertible Notes, due 2019* 403 - 6.150% Notes, due 2020 1,000 1,000 5.40% Notes, due 2021 1,250 1,250 5.87% Notes, due 2022 627 627 5.125% Notes, due 2024 1,250 1,250 5.90% Notes, due 2027 625 625 6.75% Bonds, due 2028 300 300 5.95% Notes due 2037 625 625 BNDES Loans, due 2015-2029 (see below for weighted average rates) 174 267 Iowa Finance Authority Loan, due 2042 (4.75%) 250 250 Other** 61 104 9,065 8,798 Less: amount due within one year 21 29 $ 9,044 $ 8,769 * Amount was assumed in conjunction with the acquisition of RTI (see Note F). ** Other includes various financing arrangements related to subsidiaries, unamortized debt discounts related to the outstanding notes and bonds listed in the table above, an equity option related to the convertible notes due in 2019 (see Note F), and adjustments to the carrying value of long-term debt related to an interest swap contract accounted for as a fair value hedge (see Derivatives in Note X). |
Other Noncurrent Liabilities 48
Other Noncurrent Liabilities and Deferred Credits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Other Noncurrent Liabilities and Deferred Credits | December 31, 2015 2014 Environmental remediation (N) $ 554 $ 473 Asset retirement obligations (C) 551 587 Income taxes (T) 521 377 Accrued compensation and retirement costs 329 346 Fair value of derivative contracts (X) 208 376 Liability related to the resolution of a legal matter (N) 148 222 Contingent payment related to an acquisition (F) 130 130 Deferred alumina sales revenue 84 93 Deferred credit related to derivative contract (X) - 62 Other 213 230 $ 2,738 $ 2,896 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Shareholders' Interests | The following table summarizes the noncontrolling shareholders’ interests in the equity of certain Alcoa majority-owned December 31, 2015 2014 Alcoa World Alumina and Chemicals $ 2,071 $ 2,474 Other 14 14 $ 2,085 $ 2,488 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Activity Related to Alba Matter | The following table details the activity related to the Alba matter: 2013 2012 Alcoa Alumina Total Alcoa Alumina Total Government investigations (1) $ 326 $ 58 $ 384 $ - $ - $ - Civil suit (1) - - - 51 34 85 Reallocation of civil suit 21 (21 ) - - - - Reallocation of legal costs 20 (20 ) - - - - Loss before income taxes 367 17 384 51 34 85 Benefit for income taxes 66 - 66 18 - 18 Net loss (2) $ 301 $ 17 $ 318 $ 33 $ 34 $ 67 (1) The amount in the Total column was recorded in Restructuring and other charges (see Note D). (2) In 2013 and 2012, the amount for Alcoa was included in Net (loss) income attributable to Alcoa, and the amount for Alumina Limited was included in Net income (loss) attributable to noncontrolling interests. |
Other Expenses (Income), Net (T
Other Expenses (Income), Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expenses (Income), Net | 2015 2014 2013 Equity loss $ 89 $ 92 $ 68 Interest income (16 ) (19 ) (13 ) Foreign currency losses (gains), net - 1 (33 ) Net gain from asset sales (74 ) (47 ) (10 ) Net loss (gain) on mark-to-market derivative contracts (X) 23 15 (29 ) Other, net (20 ) 5 (8 ) $ 2 $ 47 $ (25 ) |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Paid for Interest and Income Taxes | Cash paid for interest and income taxes was as follows: 2015 2014 2013 Interest, net of amount capitalized $ 487 $ 441 $ 433 Income taxes, net of amount refunded $ 345 301 200 |
Schedule of Cash Paid for Acquisitions Including Non-Controlling Interest | The details related to cash paid for acquisitions (including of a noncontrolling interest in 2014) were as follows: 2015 2014 2013 Assets acquired $ 2,003 $ 3,515 $ - Liabilities assumed (868 ) (345 ) - Contingent consideration liability - (130 ) - Equity issued (870 ) (610 ) - Noncontrolling interest acquired - 31 - Increase in Alcoa’s shareholders’ equity (60 ) (3 ) - Cash paid 205 2,458 - Less: cash acquired 302 45 - Net cash paid $ (97 ) $ 2,413 $ - |
Segment and Geographic Area I53
Segment and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results and Assets of Alcoa's Reportable Segments | The operating results and assets of Alcoa’s reportable segments were as follows: Alumina Primary Metals Global Products Engineered Products Transportation Total 2015 Sales: Third-party sales $ 3,455 $ 5,591 $ 6,238 $ 5,342 $ 1,882 $ 22,508 Intersegment sales 1,687 2,170 125 - - 3,982 Total sales $ 5,142 $ 7,761 $ 6,363 $ 5,342 $ 1,882 $ 26,490 Profit and loss: Equity loss $ (41 ) $ (12 ) $ (32 ) $ - $ - $ (85 ) Depreciation, depletion, and amortization 296 429 227 233 43 1,228 Income taxes 300 (28 ) 109 282 63 726 ATOI 746 155 244 595 166 1,906 2014 Sales: Third-party sales $ 3,509 $ 6,800 $ 7,351 $ 4,217 $ 2,021 $ 23,898 Intersegment sales 1,941 2,931 185 - - 5,057 Total sales $ 5,450 $ 9,731 $ 7,536 $ 4,217 $ 2,021 $ 28,955 Profit and loss: Equity loss $ (29 ) $ (34 ) $ (27 ) $ - $ - $ (90 ) Depreciation, depletion, and amortization 387 494 235 137 42 1,295 Income taxes 153 203 89 298 69 812 ATOI 370 594 245 579 180 1,968 2013 Sales: Third-party sales $ 3,326 $ 6,596 $ 7,106 $ 4,054 $ 1,951 $ 23,033 Intersegment sales 2,235 2,621 178 - - 5,034 Total sales $ 5,561 $ 9,217 $ 7,284 $ 4,054 $ 1,951 $ 28,067 Profit and loss: Equity loss $ (4 ) $ (51 ) $ (13 ) $ - $ - $ (68 ) Depreciation, depletion, and amortization 426 526 226 124 42 1,344 Income taxes 66 (74 ) 123 286 67 468 ATOI 259 (20 ) 292 569 167 1,267 2015 Assets: Capital expenditures $ 184 $ 156 $ 307 $ 383 $ 77 $ 1,107 Equity investments 667 634 217 - - 1,518 Goodwill 6 - 201 4,660 58 4,925 Total assets 6,165 7,324 4,498 10,732 947 29,666 2014 Assets: Capital expenditures $ 246 $ 176 $ 389 $ 249 $ 72 $ 1,132 Equity investments 669 890 226 - - 1,785 Goodwill 8 - 210 4,458 86 4,762 Total assets 7,350 9,308 4,908 8,800 975 31,341 |
Schedule of Reconciliation of Certain Segment Information to Consolidated Totals | The following tables reconcile certain segment information to consolidated totals: 2015 2014 2013 Sales: Total segment sales $ 26,490 $ 28,955 $ 28,067 Elimination of intersegment sales (3,982 ) (5,057 ) (5,034 ) Corporate 26 8 (1 ) Consolidated sales $ 22,534 $ 23,906 $ 23,032 |
Schedule of Segment ATOI to Consolidated Net (Loss) Income Attributable to Alcoa | 2015 2014 2013 Net (loss) income attributable to Alcoa: Total segment ATOI $ 1,906 $ 1,968 $ 1,267 Unallocated amounts (net of tax): Impact of LIFO 136 (54 ) 52 Metal price lag (133 ) 78 (45 ) Interest expense (324 ) (308 ) (294 ) Noncontrolling interests (125 ) 91 (41 ) Corporate expense (266 ) (284 ) (274 ) Impairment of goodwill (25 ) - (1,731 ) Restructuring and other charges (943 ) (894 ) (607 ) Other (548 ) (329 ) (612 ) Consolidated net (loss) income attributable to Alcoa $ (322 ) $ 268 $ (2,285 ) |
Schedule of Segment Reporting Information to Consolidated Assets | December 31, 2015 2014 Assets: Total segment assets $ 29,666 $ 31,341 Elimination of intersegment receivables (318 ) (490 ) Unallocated amounts: Cash and cash equivalents 1,919 1,877 Deferred income taxes 2,668 3,139 Corporate goodwill 476 485 Corporate fixed assets, net 733 819 LIFO reserve (559 ) (767 ) Fair value of derivative contracts 1,078 16 Other 865 943 Consolidated assets $ 36,528 $ 37,363 |
Sales by Major Product Grouping | Sales by major product grouping were as follows: 2015 2014 2013 Sales: Alumina $ 3,333 $ 3,401 $ 3,151 Primary aluminum 5,085 6,011 6,194 Flat-rolled aluminum 6,238 7,351 7,106 Investment castings 1,812 1,784 1,807 Fastening systems 2,168 1,647 1,505 Architectural aluminum systems 951 1,002 977 Aluminum wheels 790 786 702 Other extruded and forged products 1,332 1,019 1,015 Other 825 905 575 $ 22,534 $ 23,906 $ 23,032 |
Schedule of Geographic Information for Sales | Geographic information for sales was as follows (based upon the country where the point of sale occurred): 2015 2014 2013 Sales: United States (1) $ 12,425 $ 12,103 $ 11,766 Spain (2) (3) 2,853 3,359 2,282 Australia 2,196 3,028 3,240 Brazil 854 1,398 1,221 France 802 915 862 United Kingdom 698 464 475 Hungary 622 630 555 China 565 415 259 Russia 455 642 683 Canada 308 143 123 Germany 264 229 230 Italy 139 150 157 Netherlands (3) 34 36 524 Norway (2) 30 31 283 Other 289 363 372 $ 22,534 $ 23,906 $ 23,032 (1) Sales of a portion of the alumina from Alcoa’s refineries in Suriname, Brazil, Australia, and Jamaica (prior to divestiture—see Note F) and most of the aluminum from Alcoa’s smelters in Canada occurred in the United States. (2) In 2015, 2014, and 2013, Sales of the aluminum from Alcoa’s smelters in Norway occurred in Spain. (3) In 2015 and 2014, Sales of the aluminum from Alcoa’s smelter in Iceland occurred in Spain. In 2013, Sales of the aluminum from Alcoa’s smelter in Iceland occurred in both Spain and the Netherlands. |
Schedule of Geographic Information for Long-Lived Assets | Geographic information for long-lived assets was as follows (based upon the physical location of the assets): December 31, 2015 2014 Long-lived assets: United States $ 5,758 $ 5,403 Australia 2,159 2,538 Brazil 2,046 3,137 Iceland 1,397 1,460 Canada 1,238 1,216 Norway 463 588 China 352 389 United Kingdom 312 333 Russia 303 443 Spain 294 339 Hungary 190 210 Other 303 370 $ 14,815 $ 16,426 |
Preferred and Common Stock (Tab
Preferred and Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Share Activity | Share Activity Common stock Treasury Outstanding Balance at end of 2012 110,694,604 1,067,211,953 Conversion of convertible notes - 310 Issued for stock-based compensation plans (3,798,899 ) 3,798,899 Balance at end of 2013 106,895,705 1,071,011,162 Conversion of convertible notes - 89,383,953 Private placement - 36,523,010 Issued for stock-based compensation plans (19,745,536 ) 19,745,536 Balance at end of 2014 87,150,169 1,216,663,661 Acquisition of RTI - 87,397,414 Issued for stock-based compensation plans (6,099,066 ) 6,099,066 Balance at end of 2015 81,051,103 1,310,160,141 |
Schedule of Activity for Stock Options and Stock Awards | The activity for stock options and stock awards during 2015 was as follows (options and awards in millions): Stock options Stock awards Number of options Weighted average exercise price Number of awards Weighted average FMV per award Outstanding, January 1, 2015 32 11.26 19 9.98 Granted 3 15.55 7 14.85 Assumed at Acquisition 2 11.24 1 9.96 Exercised (3 ) 8.95 - - Converted - - (5 ) 10.08 Expired or forfeited (1 ) 13.39 (1 ) 11.64 Performance share adjustment - - (1 ) 10.96 Outstanding, December 31, 2015 33 11.91 20 11.38 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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): 2015 2014 2013 Net (loss) income attributable to Alcoa $ (322 ) $ 268 $ (2,285 ) Less: preferred stock dividends declared 69 21 2 Net (loss) income available to Alcoa common shareholders—basic (391 ) 247 (2,287 ) Add: dividends related to mandatory convertible preferred stock - - - Add: interest expense related to convertible notes - - - Net (loss) income available to Alcoa common shareholders—diluted $ (391 ) $ 247 $ (2,287 ) Average shares outstanding—basic 1,259 1,162 1,070 Effect of dilutive securities: Stock options - 7 - Stock and performance awards - 11 - Mandatory convertible preferred stock - - - Convertible notes - - - Average shares outstanding—diluted 1,259 1,180 1,070 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income (loss) from Continuing Operations Before Income Taxes | The components of income (loss) before income taxes were as follows: 2015 2014 2013 United States $ (607 ) $ (125 ) $ (1,269 ) Foreign 855 622 (547 ) $ 248 $ 497 $ (1,816 ) |
Schedule of Provision for Income Taxes on Income from Continuing Operations | The provision for income taxes consisted of the following: 2015 2014 2013 Current: Federal* $ 3 $ (3 ) $ 14 Foreign 409 357 235 State and local (1 ) 1 1 411 355 250 Deferred: Federal* (108 ) 7 84 Foreign 142 (41 ) 95 State and local - (1 ) (1 ) 34 (35 ) 178 Total $ 445 $ 320 $ 428 * Includes U.S. taxes related to foreign income |
Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to Alcoa’s effective tax rate was as follows (the effective tax rate for 2015 and 2014 was a provision on income and for 2013 was a provision on a loss): 2015 2014 2013 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % Taxes on foreign operations 0.4 (3.2 ) 0.7 Permanent differences on restructuring and other charges and asset disposals 2.7 (3.5 ) (0.8 ) Non-deductible acquisition costs 5.2 1.7 - Equity income/loss 4.9 3.2 (0.7 ) Noncontrolling interests (1) 11.4 6.8 (3.1 ) Statutory tax rate and law changes (2) (0.8 ) 17.9 0.6 Tax holidays (3) (11.3 ) 6.1 - Tax credits (3.6 ) (1.3 ) 0.2 Changes in valuation allowances 135.3 3.5 (23.2 ) Impairment of goodwill 3.6 - (33.3 ) Company-owned life insurance/split-dollar net premiums (2.2 ) (2.2 ) 1.1 Other (1.2 ) 0.4 (0.1 ) Effective tax rate 179.4 % 64.4 % (23.6 )% (1) In 2014, the noncontrolling interests’ impact on Alcoa’s effective tax rate was mostly due to the noncontrolling interest’s share of a loss on the divestiture of an ownership interest in a mining and refining joint venture in Jamaica (see Note F). (2) In November 2014, Spain enacted corporate tax reform that changed the corporate tax rate from 30% in 2014 to 28% in 2015 to 25% in 2016. As a result, Alcoa remeasured certain deferred tax assets related to Spanish subsidiaries. (3) In 2014, a tax holiday for certain Alcoa subsidiaries in Brazil became effective (see below). |
Schedule of Components of Net Deferred Tax Assets and Liabilities | The components of net deferred tax assets and liabilities were as follows: 2015 2014 December 31, Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Depreciation $ 194 $ 1,353 $ 147 $ 1,187 Employee benefits 2,517 34 2,413 37 Loss provisions 486 9 441 10 Deferred income/expense 37 294 30 230 Tax loss carryforwards 1,917 - 2,075 - Tax credit carryforwards 693 - 625 - Derivatives and hedging activities - 276 5 39 Other 680 339 521 297 6,524 2,305 6,257 1,800 Valuation allowance (2,037 ) - (1,668 ) - $ 4,487 $ 2,305 $ 4,589 $ 1,800 |
Schedule of Expiration Periods of Deferred Tax Assets | The following table details the expiration periods of the deferred tax assets presented above: December 31, 2015 Expires within 10 years Expires within 11-20 years No expiration* Other* Total Tax loss carryforwards $ 361 $ 694 $ 862 $ - $ 1,917 Tax credit carryforwards 492 103 98 - 693 Other - - 473 3,441 3,914 Valuation allowance (596 ) (704 ) (423 ) (314 ) (2,037 ) $ 257 $ 93 $ 1,010 $ 3,127 $ 4,487 * Deferred tax assets with no expiration may still have annual limitations on utilization. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. A substantial amount of Other relates to employee benefits that will become deductible for tax purposes over an extended period of time as contributions are made to employee benefit plans and payments are made to retirees. |
Schedule of Changes in Valuation Allowance | The following table details the changes in the valuation allowance: December 31, 2015 2014 2013 Balance at beginning of year $ 1,668 $ 1,804 $ 1,400 Increase to allowance 472 117 471 Release of allowance (42 ) (77 ) (41 ) Acquisitions and divestitures (F) 29 (37 ) - U.S. state tax apportionment and tax rate changes (45 ) (80 ) (32 ) Foreign currency translation (45 ) (59 ) 6 Balance at end of year $ 2,037 $ 1,668 $ 1,804 |
Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows: December 31, 2015 2014 2013 Balance at beginning of year $ 35 $ 63 $ 66 Additions for tax positions of the current year 2 2 2 Additions for tax positions of prior years 15 5 11 Reductions for tax positions of prior years (2 ) (4 ) (2 ) Settlements with tax authorities (2 ) (29 ) (8 ) Expiration of the statute of limitations (1 ) - (2 ) Foreign currency translation (4 ) (2 ) (4 ) Balance at end of year $ 43 $ 35 $ 63 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The following table details the changes in the allowance for doubtful accounts related to customer receivables and other receivables: Customer receivables Other receivables December 31, 2015 2014 2013 2015 2014 2013 Balance at beginning of year $ 14 $ 20 $ 39 $ 41 $ 47 $ 74 Provision for doubtful accounts 5 2 3 8 8 29 Write off of uncollectible accounts (4 ) (3 ) (19 ) (2 ) (4 ) (39 ) Recoveries of prior write-offs - (2 ) (3 ) 1 (7 ) (10 ) Other (2 ) (3 ) - 1 (3 ) (7 ) Balance at end of year $ 13 $ 14 $ 20 $ 49 $ 41 $ 47 |
Interest Cost Components (Table
Interest Cost Components (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Schedule of Interest Cost Components | 2015 2014 2013 Amount charged to expense $ 498 $ 473 $ 453 Amount capitalized 57 56 99 $ 555 $ 529 $ 552 |
Pension and Other Postretirem59
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Obligations and Funded Status | Obligations and Funded Status Pension benefits Other December 31, 2015 2014 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 15,019 $ 13,730 $ 2,368 $ 2,592 Service cost 187 182 14 15 Interest cost 583 640 92 114 Amendments 18 33 - (111 ) Actuarial (gains) losses (222 ) 1,552 26 16 Acquisitions (F) 188 455 48 - Divestitures (F) - (142 ) - (10 ) Settlements (72 ) (134 ) - - Curtailments (12 ) - (6 ) - Benefits paid, net of participants’ contributions (1,033 ) (1,051 ) (235 ) (264 ) Medicare Part D subsidy receipts - - 15 19 Foreign currency translation impact (409 ) (246 ) (3 ) (3 ) Benefit obligation at end of year* $ 14,247 $ 15,019 $ 2,319 $ 2,368 Change in plan assets Fair value of plan assets at beginning of year $ 11,717 $ 10,580 $ - $ - Actual return on plan assets 24 1,764 - - Employer contributions 479 507 - - Participants’ contributions 21 25 - - Benefits paid (1,015 ) (1,038 ) - - Administrative expenses (55 ) (54 ) - - Acquisitions (F) 164 431 - - Divestitures (F) - (164 ) - - Settlements (72 ) (134 ) - - Foreign currency translation impact (335 ) (200 ) - - Fair value of plan assets at end of year* $ 10,928 $ 11,717 $ - $ - Funded status* $ (3,319 ) $ (3,302 ) $ (2,319 ) $ (2,368 ) Less: Amounts attributed to joint venture partners (30 ) (33 ) - - Net funded status $ (3,289 ) $ (3,269 ) $ (2,319 ) $ (2,368 ) Amounts recognized in the Consolidated Balance Sheet consist of: Noncurrent assets $ 44 $ 53 $ - $ - Current liabilities (35 ) (31 ) (213 ) (213 ) Noncurrent liabilities (3,298 ) (3,291 ) (2,106 ) (2,155 ) Net amount recognized $ (3,289 ) $ (3,269 ) $ (2,319 ) $ (2,368 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss $ 5,351 $ 5,379 $ 398 $ 392 Prior service cost (benefit) 70 102 (106 ) (144 ) Total, before tax effect 5,421 5,481 292 248 Less: Amounts attributed to joint venture partners 38 43 - - Net amount recognized, before tax effect $ 5,383 $ 5,438 $ 292 $ 248 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss consist of: Net actuarial loss $ 440 $ 572 $ 23 $ 15 Amortization of accumulated net actuarial loss (468 ) (391 ) (17 ) (13 ) Prior service (benefit) cost (7 ) 26 1 (112 ) Amortization of prior service (cost) benefit (25 ) (18 ) 37 25 Total, before tax effect (60 ) 189 44 (85 ) Less: Amounts attributed to joint venture partners (5 ) 5 - - Net amount recognized, before tax effect $ (55 ) $ 184 $ 44 $ (85 ) * At December 31, 2015, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $10,983, $8,077, and $(2,906), respectively. At December 31, 2014, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $11,404, $8,576, and $(2,828), respectively. |
Schedule of Pension Plan Benefit Obligations | Pension Plan Benefit Obligations Pension benefits 2015 2014 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows: Projected benefit obligation $ 14,247 $ 15,019 Accumulated benefit obligation 13,832 14,553 The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets was as follows: Projected benefit obligation 14,146 14,151 Fair value of plan assets 10,786 10,777 The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets was as follows: Accumulated benefit obligation 12,510 13,112 Fair value of plan assets 9,512 10,144 |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Pension benefits (1) Other postretirement benefits (2) 2015 2014 2013 2015 2014 2013 Service cost $ 175 $ 166 $ 194 $ 14 $ 15 $ 17 Interest cost 577 630 602 92 114 114 Expected return on plan assets (753 ) (782 ) (788 ) - - - Recognized net actuarial loss 468 391 489 17 13 35 Amortization of prior service cost (benefit) 16 18 19 (37 ) (25 ) (18 ) Settlements (3) 16 26 9 - - - Curtailments (4) 9 - 6 (4 ) - - Special termination benefits (5) 16 - 77 - - - Net periodic benefit cost (6) $ 524 $ 449 $ 608 $ 82 $ 117 $ 148 (1) In 2015, 2014, and 2013, net periodic benefit cost for U.S pension plans was $423, $335, and $391, respectively. (2) In 2015, 2014, and 2013, net periodic benefit cost for other postretirement benefits reflects a reduction of $34, $38, and $55, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D. (3) In 2015, settlements were due to workforce reductions (see Note D) and the payment of lump sum benefits and/or purchases of annuity contracts. In 2014, settlements were due to workforce reductions (see Note D). In 2013, settlements were due to the payment of lump sum benefits and/or purchases of annuity contracts. (4) In 2015 and 2013, curtailments were due to elimination of benefits or workforce reductions (see Note D). (5) In 2015 and 2013, special termination benefits were due to workforce reductions (see Note D). (6) Amounts attributed to joint venture partners are not included. |
Schedule of Amounts Expected to be Recognized in Net Periodic Benefit Cost | Amounts Expected to be Recognized in Net Periodic Benefit Cost Pension benefits Other postretirement benefits 2016 2016 Net actuarial loss recognition 413 21 Prior service cost (benefit) recognition 15 (26 ) |
Schedule of Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially): 2015 2014 2013 Health care cost trend rate assumed for next year 5.5 % 5.5 % 5.5 % Rate to which the cost trend rate gradually declines 4.5 % 4.5 % 4.5 % Year that the rate reaches the rate at which it is assumed to remain 2019 2018 2017 |
Schedule of One-Percentage Point Change in Assumed Rates of Health Care Cost Trend Rates | Assumed health care cost trend rates have an effect on the amounts reported for the health care plan. A one-percentage point change in these assumed rates would have the following effects: 1% increase 1% Effect on other postretirement benefit obligations $ 126 $ (113 ) Effect on total of service and interest cost components 5 (5 ) |
Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations | Alcoa’s pension plans’ investment policy and weighted average asset allocations at December 31, 2015 and 2014, by asset class, were as follows: Plan assets Asset class Policy range 2015 2014 Equities 20–55 % 30 % 33 % Fixed income 25–55 % 43 45 Other investments 15–35 % 27 22 Total 100 % 100 % |
Schedule of Fair Value of Pension Plan Assets | The following table presents the fair value of pension plan assets classified under the appropriate level of the fair value hierarchy: December 31, 2015 Level 1 Level 2 Level 3 Total Equities: Equity securities $ 826 $ 929 $ 170 $ 1,925 Long/short equity hedge funds - - 932 932 Private equity - - 466 466 $ 826 $ 929 $ 1,568 $ 3,323 Fixed income: Intermediate and long duration government/credit $ 2,496 $ 1,255 $ - $ 3,751 Other - 952 - 952 $ 2,496 $ 2,207 $ - $ 4,703 Other investments: Real estate $ 158 $ 16 $ 562 $ 736 Discretionary and systematic macro hedge funds - - 1,671 1,671 Other 126 - 367 493 $ 284 $ 16 $ 2,600 $ 2,900 Total* $ 3,606 $ 3,152 $ 4,168 $ 10,926 December 31, 2014 Level 1 Level 2 Level 3 Total Equities Equity securities $ 1,156 $ 1,131 $ 176 $ 2,463 Long/short equity hedge funds - - 963 963 Private equity - - 543 543 $ 1,156 $ 1,131 $ 1,682 $ 3,969 Fixed income: Intermediate and long duration government/credit $ 2,998 $ 1,900 $ - $ 4,898 Other - 413 - 413 $ 2,998 $ 2,313 $ - $ 5,311 Other investments: Real estate $ 152 $ 18 $ 459 $ 629 Discretionary and systematic macro hedge funds - - 1,408 1,408 Other 140 - 376 516 $ 292 $ 18 $ 2,243 $ 2,553 Total** $ 4,446 $ 3,462 $ 3,925 $ 11,833 * As of December 31, 2015, the total fair value of pension plans’ assets excludes a net receivable of $2 which represents securities sold not yet settled plus interest and dividends earned on various investments. ** As of December 31, 2014, the total fair value of pension plans’ assets excludes a net payable of $116, which represents assets related to divested businesses (see Note F) to be transferred to the buyers’ pension plans less securities sold not yet settled plus interest and dividends earned on various investments. |
Schedule of Reconciliation of Activity for Investments | The following table presents a reconciliation of activity for such investments: 2015 2014 Balance at beginning of year $ 3,925 $ 3,421 Realized gains 118 180 Unrealized gains 94 146 Purchases 640 868 Sales (481 ) (768 ) Issuances - - Settlements - - Acquisitions (F) 12 117 Foreign currency translation impact (140 ) (39 ) Transfers in and/or out of Level 3* - - Balance at end of year $ 4,168 $ 3,925 * In 2015 and 2014, there were no transfers of financial instruments into or out of Level 3. |
Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts | Benefit payments expected to be paid to pension and other postretirement benefit plans’ participants and expected Medicare Part D subsidy receipts are as follows: Year ended December 31, Pension Gross Other Medicare Part D Net Other 2016 $ 910 $ 230 $ 15 $ 215 2017 900 225 15 210 2018 910 225 15 210 2019 910 220 15 205 2020 920 220 20 200 2021 through 2025 4,650 975 80 895 $ 9,200 $ 2,095 $ 160 $ 1,935 |
Benefit Obligation [Member] | |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Weighted average assumptions used to determine benefit obligations for U.S. pension and other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially): December 31, 2015 2014 Discount rate 4.29 % 4.00 % Rate of compensation increase 3.5 3.5 |
Net Periodic Benefit Cost [Member] | |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Weighted average assumptions used to determine net periodic benefit cost for U.S. pension and other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially): 2015 2014 2013 Discount rate* 4.00 % 4.80 % 4.15 % Expected long-term rate of return on plan assets 7.75 8.00 8.50 Rate of compensation increase 3.50 3.50 3.50 * In all periods presented, the respective discount rates were used to determine net periodic benefit cost for most U.S. pension plans for the full annual period. However, the discount rates for a limited number of plans were updated during 2015, 2014, and 2013 to reflect the remeasurement of these plans due to new union labor agreements, settlements, and/or curtailments. The updated discount rates used were not significantly different from the discount rates presented. |
Derivatives and Other Financi60
Derivatives and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Quantitative Information for Level 3 Derivative Contracts | The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative contracts: Fair value at December 31, 2015 Unobservable input Range ($in full amounts) Assets: Embedded aluminum derivatives $ 1,060 Price of aluminum beyond forward curve Aluminum: $2,060 per metric ton in 2026 to $2,337 per metric ton in 2029 (two contracts) and $2,534 per metric ton in 2036 (one contract) Midwest premium: $0.0940 per pound in 2021 to $0.0940 per pound in 2029 (two contracts) and 2036 (one contract) Embedded aluminum derivative 69 Interrelationship of future aluminum prices, foreign currency exchange rates, and the U.S. consumer price index (CPI) Aluminum: $1,525 per metric ton in January 2016 to $1,550 per metric ton in September 2016 Foreign currency: A$1 = $0.73 in 2016 (January through September) CPI: 1982 base year of 100 and 233 in January 2016 to 236 in September 2016 Embedded aluminum derivative 6 Interrelationship of LME price to overall energy price Aluminum: $1,512 per metric ton in 2016 to $1,686 per metric ton in 2019 Embedded aluminum derivative - Interrelationship of future aluminum and oil prices Aluminum: $1,525 per metric ton in 2016 to $1,652 per metric ton in 2018 Oil: $38 per barrel in 2016 to $53 per barrel in 2018 Liabilities: Embedded aluminum derivative 169 Price of aluminum beyond forward curve Aluminum: $2,060 per metric ton in 2026 to $2,128 per metric ton in 2027 Embedded credit derivative 35 Credit spread between Alcoa and counterparty 3.41% to 4.29% Energy contract 2 Price of electricity beyond forward curve Electricity: $45 per megawatt hour in 2019 to $121 per megawatt hour in 2036 * The fair value of the energy contract reflected as a liability in this table is lower by $2 compared to the respective amount reflected in the Level 3 tables presented below. This is due to the fact that this contract is in a liability position for the current portion but is in an asset position for the noncurrent portion, and is reflected as such on the accompanying Consolidated Balance Sheet. However, this derivative is reflected as a net liability in the above table for purposes of presenting the assumptions utilized to measure the fair value of the derivative instrument in its entirety. |
Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities | The fair values of Level 3 derivative instruments recorded as assets and liabilities in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives December 31, 2015 December 31, 2014 Derivatives designated as hedging instruments: Prepaid expenses and other current assets: Embedded aluminum derivatives $ 72 $ 24 Other noncurrent assets: Embedded aluminum derivative 994 73 Energy contract 2 2 Total derivatives designated as hedging instruments $ 1,068 $ 99 Derivatives not designated as hedging instruments: Prepaid expenses and other current assets: Embedded aluminum derivatives $ 69 $ 98 Other noncurrent assets: Embedded aluminum derivatives - 71 Total derivatives not designated as hedging instruments $ 69 $ 169 Total Asset Derivatives $ 1,137 $ 268 Liability Derivatives Derivatives designated as hedging instruments: Other current liabilities: Embedded aluminum derivative $ 9 $ 24 Energy contract 4 - Other noncurrent liabilities and deferred credits: Embedded aluminum derivatives 160 352 Total derivatives designated as hedging instruments $ 173 $ 376 Derivatives not designated as hedging instruments: Other current liabilities: Embedded credit derivative $ 6 $ 2 Other noncurrent liabilities and deferred credits: Embedded credit derivative 29 16 Total derivatives not designated as hedging instruments $ 35 $ 18 Total Liability Derivatives $ 208 $ 394 |
Schedule of Net Fair Values of Level 3 Derivative Instruments and Effect of Hypothetical Change (Increase or Decrease of 10%) in Market Prices or Rates | The following table shows the net fair values of the Level 3 derivative instruments at December 31, 2015 and the effect on these amounts of a hypothetical change (increase or decrease of 10%) in the market prices or rates that existed as of December 31, 2015: Fair value asset/(liability) Index change of + / - 10% Embedded aluminum derivatives $ 966 $ 340 Embedded credit derivative (35 ) 4 Energy contract (2 ) 136 |
Schedule of Reconciliation of Activity for Derivative Contracts | The following tables present a reconciliation of activity for Level 3 derivative contracts: Assets Liabilities 2015 Embedded aluminum derivatives Energy contract Embedded aluminum derivatives Embedded credit derivative Energy contract Opening balance—January 1, 2015 $ 266 $ 2 $ 376 $ 18 $ - Total gains or losses (realized and unrealized) included in: Sales 5 - (16 ) - - Cost of goods sold (99 ) - - - - Other expenses, net (8 ) (2 ) - 17 1 Other comprehensive loss 964 1 (191 ) - 3 Purchases, sales, issuances, and settlements* - - - - - Transfers into and/or out of Level 3* - - - - - Foreign currency translation 7 1 - - - Closing balance—December 31, 2015 $ 1,135 $ 2 $ 169 $ 35 $ 4 Change in unrealized gains or losses included in earnings for derivative contracts held at December 31, 2015: Sales $ - $ - $ - $ - $ - Cost of goods sold - - - - - Other expenses, net (8 ) (2 ) - (17 ) 1 * In 2015, there were no purchases, sales, issuances or settlements of Level 3 derivative instruments. Additionally, there were no transfers of derivative instruments into or out of Level 3. Assets Liabilities 2014 Embedded aluminum derivatives Energy contract Embedded aluminum derivatives Embedded credit derivative Opening balance—January 1, 2014 $ 349 $ 6 $ 410 $ 21 Total gains or losses (realized and unrealized) included in: Sales (1 ) - (27 ) - Cost of goods sold (163 ) - - (1 ) Other expenses, net (15 ) - - (2 ) Other comprehensive loss 71 (4 ) (7 ) - Purchases, sales, issuances, and settlements* - - - - Transfers into and/or out of Level 3* - - - - Foreign currency translation 23 - - - Closing balance—December 31, 2014 $ 266 $ 2 $ 376 $ 18 Change in unrealized gains or losses included in earnings for derivative contracts held at December 31, 2014: Sales $ - $ - $ - $ - Cost of goods sold - - - - Other expenses, net (15 ) - - (2 ) * In November 2014, three new embedded derivatives were contained within renewed power contracts; however, there was no amount included for issuances as the fair value on the date of issuance was zero. There were no purchases, sales or settlements of Level 3 derivative instruments. Additionally, there were no transfers of derivative instruments into or out of Level 3. |
Schedule of Carrying Values and Fair Values of Other Financial Instruments | The carrying values and fair values of Alcoa’s other financial instruments were as follows: December 31, 2015 2014 Carrying Fair Carrying Fair Cash and cash equivalents $ 1,919 $ 1,919 $ 1,877 $ 1,877 Restricted cash 37 37 20 20 Noncurrent receivables 17 17 17 17 Available-for-sale securities 193 193 153 153 Short-term borrowings 38 38 54 54 Commercial paper - - - - Long-term debt due within one year 21 21 29 29 Contingent payment related to an acquisition 130 130 130 130 Long-term debt, less amount due within one year 9,044 8,922 8,769 9,445 |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Data | Supplemental Financial Information (unaudited) Quarterly Data (in millions, except per-share amounts) First Second Third Fourth* Year 2015 Sales $ 5,819 $ 5,897 $ 5,573 $ 5,245 $ 22,534 Net income (loss) attributable to Alcoa $ 195 $ 140 $ 44 $ (701 ) $ (322 ) Earnings per share attributable to Alcoa common shareholders**: Basic $ 0.15 $ 0.10 $ 0.02 $ (0.55 ) $ (0.31 ) Diluted $ 0.14 $ 0.10 $ 0.02 $ (0.55 ) $ (0.31 ) 2014 Sales $ 5,454 $ 5,836 $ 6,239 $ 6,377 $ 23,906 Net (loss) income attributable to Alcoa $ (178 ) $ 138 $ 149 $ 159 $ 268 Earnings per share attributable to Alcoa common shareholders**: Basic $ (0.16 ) $ 0.12 $ 0.13 $ 0.12 $ 0.21 Diluted $ (0.16 ) $ 0.12 $ 0.12 $ 0.11 $ 0.21 * In the fourth quarter of 2015, Alcoa recorded restructuring and other charges of $735 ($507 after-tax and noncontrolling interest), which were primarily related to closures and/or curtailments of a number of smelters and refineries (see Note D) and a charge for legal matters in Italy (see Note N); a discrete income tax charge of $190 for valuation allowances on certain deferred tax assets in the United States and Iceland (see Note T); and an impairment of goodwill of $25 (see Goodwill and Other Intangible Assets in Notes A and E). In the fourth quarter of 2014, Alcoa recorded a net loss of $332 ($163 after-tax and noncontrolling interest) related to the divestiture of four operations (see Notes D and F). ** Per share amounts are calculated independently for each period presented; therefore, the sum of the quarterly per share amounts may not equal the per share amounts for the year. |
Summary of Significant Accoun62
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)Reporting_Unit | Dec. 31, 2013USD ($) | Jan. 01, 2016USD ($) | Jul. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 14, 2014USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percent of equity investments in other entity | 40.00% | ||||||||
Original maturity of cash equivalents | 3 months | ||||||||
Segment Allocation, Goodwill Recognized | $ 5,401,000,000 | $ 3,415,000,000 | $ 5,401,000,000 | $ 3,415,000,000 | $ 5,247,000,000 | ||||
Minimum percentage of estimated fair value of reporting unit to be less than carrying amount of goodwill | 50.00% | ||||||||
Qualitative assessment for reporting units | Reporting_Unit | 7 | ||||||||
Goodwill impairment | 25,000,000 | $ 25,000,000 | 1,731,000,000 | ||||||
Maximum hedging contracts period, in years | 5 years | ||||||||
Businesses expected to be disposed within, years | 1 year | ||||||||
Subsequent Event [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change due to recent accounting guidance | $ 58,000,000 | ||||||||
TITAL [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Segment Allocation, Goodwill Recognized | $ 118,000,000 | ||||||||
RTI [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Segment Allocation, Goodwill Recognized | 240,000,000 | $ 240,000,000 | |||||||
Deferred Income Tax Non Current [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Deferred tax assets and liabilities prior period reclassification adjustment | 421,000,000 | ||||||||
Other Noncurrent Liabilities and Deferred Credits [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Deferred tax assets and liabilities prior period reclassification adjustment | 83,000,000 | ||||||||
Non Current Assets [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Deferred tax assets and liabilities prior period reclassification adjustment | (385,000,000) | ||||||||
Noncurrent Liability [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Deferred tax assets and liabilities prior period reclassification adjustment | $ (47,000,000) | ||||||||
Engineered Products and Solutions [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of reporting units | Reporting_Unit | 4 | ||||||||
Segment Allocation, Goodwill Recognized | 4,660,000,000 | 2,606,000,000 | $ 4,660,000,000 | 2,606,000,000 | 4,458,000,000 | $ 1,801,000,000 | |||
Number of reporting units for goodwill allocation | Reporting_Unit | 2 | ||||||||
Qualitative assessment for reporting units | Reporting_Unit | 4 | ||||||||
Engineered Products and Solutions [Member] | TITAL [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Segment Allocation, Goodwill Recognized | $ 118,000,000 | ||||||||
Transportation and Construction Solutions [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of reporting units being subjected to goodwill impairment test | Reporting_Unit | 10 | ||||||||
Number of reporting units | Reporting_Unit | 3 | ||||||||
Segment Allocation, Goodwill Recognized | 58,000,000 | 89,000,000 | $ 58,000,000 | 89,000,000 | 86,000,000 | ||||
Qualitative assessment for reporting units | Reporting_Unit | 2 | ||||||||
Goodwill impairment | $ 25,000,000 | ||||||||
Other Operating Segments [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of reporting units | Reporting_Unit | 3 | ||||||||
Titanium Engineered Products [Member] | RTI [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Segment Allocation, Goodwill Recognized | $ 240,000,000 | ||||||||
Global Rolled Products [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Segment Allocation, Goodwill Recognized | 201,000,000 | 218,000,000 | $ 201,000,000 | 218,000,000 | $ 210,000,000 | ||||
Qualitative assessment for reporting units | Reporting_Unit | 2 | ||||||||
Primary Metals [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Implied fair value of goodwill | $ 0 | $ 0 | |||||||
Goodwill impairment | 25,000,000 | 1,731,000,000 | |||||||
Goodwill impairment after noncontrolling interest | $ 1,719,000,000 | ||||||||
Alcoa Fastening Systems and Rings [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Segment Allocation, Goodwill Recognized | 1,117,000,000 | 1,117,000,000 | |||||||
Alcoa Fastening Systems and Rings [Member] | Engineered Products and Solutions [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Segment Allocation, Goodwill Recognized | 2,232,000,000 | 2,232,000,000 | |||||||
Alcoa Power and Propulsion [Member] | Engineered Products and Solutions [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Segment Allocation, Goodwill Recognized | $ 1,695,000,000 | $ 1,695,000,000 | |||||||
Minimum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of reporting units being subjected to goodwill impairment test | Reporting_Unit | 2 | ||||||||
Minimum [Member] | Engineered Products and Solutions [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of total goodwill allocated to reporting units | 70.00% | ||||||||
Minimum [Member] | Bauxite Mining [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Period of mining | 1 year | ||||||||
Maximum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percent of equity investments in other entity | 50.00% | 50.00% | |||||||
Number of reporting units being subjected to goodwill impairment test | Reporting_Unit | 3 | ||||||||
Maximum [Member] | Bauxite Mining [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Period of mining | 5 years |
Summary of Significant Accoun63
Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Structures and Machinery and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Structures [Member] | Alumina [Member] | Alumina Refining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 30 years |
Structures [Member] | Alumina [Member] | Bauxite Mining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 34 years |
Structures [Member] | Primary Metals [Member] | Aluminum Smelting [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 36 years |
Structures [Member] | Primary Metals [Member] | Power Generation [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 31 years |
Structures [Member] | Global Rolled Products [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 31 years |
Structures [Member] | Engineered Products and Solutions [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 29 years |
Structures [Member] | Transportation and Construction Solutions [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 28 years |
Machinery and Equipment [Member] | Alumina [Member] | Alumina Refining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 27 years |
Machinery and Equipment [Member] | Alumina [Member] | Bauxite Mining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 17 years |
Machinery and Equipment [Member] | Primary Metals [Member] | Aluminum Smelting [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 22 years |
Machinery and Equipment [Member] | Primary Metals [Member] | Power Generation [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 22 years |
Machinery and Equipment [Member] | Global Rolled Products [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 21 years |
Machinery and Equipment [Member] | Engineered Products and Solutions [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 18 years |
Machinery and Equipment [Member] | Transportation and Construction Solutions [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 19 months |
Summary of Significant Accoun64
Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Software and Other Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Software [Member] | Alumina [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 7 years |
Software [Member] | Primary Metals [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 6 years |
Software [Member] | Global Rolled Products [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 9 years |
Software [Member] | Engineered Products and Solutions [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 7 years |
Software [Member] | Transportation and Construction Solutions [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 8 years |
Other Intangible Assets [Member] | Alumina [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 15 years |
Other Intangible Assets [Member] | Primary Metals [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 37 years |
Other Intangible Assets [Member] | Global Rolled Products [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 14 years |
Other Intangible Assets [Member] | Engineered Products and Solutions [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 32 years |
Other Intangible Assets [Member] | Transportation and Construction Solutions [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 23 years |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension and other postretirement benefits | |||
Total Other comprehensive (loss) income | $ (2) | $ (82) | $ 557 |
Foreign currency translation | |||
Other comprehensive loss | (1,995) | (1,266) | (1,335) |
Available-for-sale securities | |||
Other comprehensive loss | (5) | (2) | (1) |
Cash flow hedges | |||
Total Other comprehensive income (loss) | 826 | 78 | 184 |
Energy Contracts [Member] | |||
Cash flow hedges | |||
Total Other comprehensive income before reclassifications, net of tax | (2) | (4) | 3 |
Alcoa [Member] | |||
Pension and other postretirement benefits | |||
Balance at beginning of period | (3,601) | (3,532) | (4,063) |
Unrecognized net actuarial loss and prior service cost/benefit | (478) | (492) | 281 |
Tax benefit (expense) | 170 | 167 | (88) |
Total Other comprehensive (loss) income before reclassifications, net of tax | (308) | (325) | 193 |
Amortization of net actuarial loss and prior service cost/benefit | 458 | 394 | 520 |
Tax expense | (160) | (138) | (182) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 298 | 256 | 338 |
Total Other comprehensive (loss) income | (10) | (69) | 531 |
Balance at end of period | (3,611) | (3,601) | (3,532) |
Foreign currency translation | |||
Balance at beginning of period | (846) | 179 | 1,147 |
Other comprehensive loss | (1,566) | (1,025) | (968) |
Balance at end of period | (2,412) | (846) | 179 |
Available-for-sale securities | |||
Balance at beginning of period | 2 | 3 | |
Other comprehensive loss | (5) | (2) | (1) |
Balance at end of period | (5) | 2 | |
Cash flow hedges | |||
Balance at beginning of period | (230) | (308) | (489) |
Net change from periodic revaluations | 1,138 | 78 | 205 |
Tax expense | (340) | (21) | (43) |
Total Other comprehensive income before reclassifications, net of tax | 798 | 57 | 162 |
Net amount reclassified to earnings | 35 | 25 | 22 |
Tax (expense) benefit | (6) | (4) | (3) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 29 | 21 | 19 |
Total Other comprehensive income (loss) | 827 | 78 | 181 |
Balance at end of period | 597 | (230) | (308) |
Alcoa [Member] | Aluminum Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 21 | 27 | 18 |
Alcoa [Member] | Energy Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 6 | ||
Alcoa [Member] | Foreign Exchange Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 5 | (3) | 2 |
Alcoa [Member] | Interest Rate Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 1 | 1 | 2 |
Alcoa [Member] | Nickel Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 2 | ||
Noncontrolling Interests [Member] | |||
Pension and other postretirement benefits | |||
Balance at beginning of period | (64) | (51) | (77) |
Unrecognized net actuarial loss and prior service cost/benefit | 5 | (22) | 28 |
Tax benefit (expense) | (1) | 7 | (9) |
Total Other comprehensive (loss) income before reclassifications, net of tax | 4 | (15) | 19 |
Amortization of net actuarial loss and prior service cost/benefit | 6 | 3 | 11 |
Tax expense | (2) | (1) | (4) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 4 | 2 | 7 |
Total Other comprehensive (loss) income | 8 | (13) | 26 |
Balance at end of period | (56) | (64) | (51) |
Foreign currency translation | |||
Balance at beginning of period | (351) | (110) | 257 |
Other comprehensive loss | (429) | (241) | (367) |
Balance at end of period | (780) | (351) | (110) |
Cash flow hedges | |||
Balance at beginning of period | (2) | (2) | (5) |
Net change from periodic revaluations | (1) | 4 | |
Tax expense | (1) | ||
Total Other comprehensive income before reclassifications, net of tax | (1) | 3 | |
Total Other comprehensive income (loss) | (1) | 3 | |
Balance at end of period | $ (3) | $ (2) | $ (2) |
Asset Retirement Obligations -
Asset Retirement Obligations - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015USD ($)Structure | Dec. 31, 2014USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Estimated CARO ranges per structure, minimum | $ 1,000,000 | |
Estimated CARO ranges per structure, maximum | $ 46,000,000 | |
Number of structures required to demolish | Structure | 156 | |
Current liability | $ 97,000,000 | $ 76,000,000 |
Asset Retirement Obligations 67
Asset Retirement Obligations - Schedule of Carrying Value of Recorded AROs by Major Category (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Spent pot lining disposal | $ 141 | $ 170 | |
Closure of bauxite residue areas | 165 | 178 | |
Mine reclamation | 191 | 167 | |
Demolition | 117 | 114 | |
Landfill closure | 30 | 31 | |
Other | 4 | 3 | |
Asset retirement obligation, total | $ 648 | $ 663 | $ 629 |
Asset Retirement Obligations 68
Asset Retirement Obligations - Schedule of Changes in Carrying Value of Recorded AROs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Balance at beginning of year | $ 663 | $ 629 |
Accretion expense | 19 | 25 |
Payments | (74) | (84) |
Liabilities incurred | 96 | 144 |
Divestitures | (20) | |
Foreign currency translation and other | (56) | (31) |
Balance at end of year | $ 648 | $ 663 |
Restructuring and Other Charg69
Restructuring and Other Charges - Schedule of Restructuring and Other Charges (Detail) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring and Related Activities [Abstract] | |||||
Asset impairments | $ 335 | $ 406 | $ 116 | ||
Layoff costs | 299 | 259 | 201 | ||
Legal matters in Italy (N) | 201 | ||||
Net loss on divestitures of businesses (F) | 161 | 332 | |||
Resolution of a legal matter (N) | 391 | ||||
Other | 213 | 199 | 82 | ||
Reversals of previously recorded layoff and other exit costs | (14) | (28) | (8) | ||
Restructuring and other charges | $ 735 | € 150 | $ 1,195 | $ 1,168 | $ 782 |
Restructuring and Other Charg70
Restructuring and Other Charges - 2015 Actions - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014t | May. 31, 2014t | May. 31, 2013t | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€)EmployeestDivestiture | Dec. 31, 2015USD ($)EmployeestDivestiture | Dec. 31, 2014USD ($)Employees | Dec. 31, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | $ 735 | € 150 | $ 1,195 | $ 1,168 | $ 782 | |||
Restructuring and other charges after tax and noncontrolling interest | $ 507 | 836 | 703 | 585 | ||||
Amount related to legal matters | $ 201 | |||||||
Number of plant divestitures | Divestiture | 3 | 3 | ||||||
Asset impairment charges | $ 335 | 406 | 116 | |||||
Capacity of lines under review period | 15 months | 12 months | 12 months | |||||
Capacity of lines under review | t | 460,000 | 2,800,000 | 2,800,000 | |||||
Capacity of smelting lines under review | t | 500,000 | 500,000 | ||||||
Inventory write down | $ 90 | |||||||
Inventory write down after tax and noncontrolling interests | 43 | |||||||
Corporate [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | $ 83 | 39 | 433 | |||||
Sao Luis Smelter [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Curtailment capacity | t | 74,000 | 74,000 | ||||||
Capacity of lines under review | t | 85,000 | |||||||
Suriname [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Curtailment capacity | t | 1,330,000 | 1,330,000 | ||||||
Point Comfort, TX Refinery [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Curtailment capacity | t | 2,010,000 | 2,010,000 | ||||||
Remaining curtailment capacity | t | 1,635,000 | 1,635,000 | ||||||
Wenatchee, WA Smelter [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Curtailment capacity | t | 143,000 | 143,000 | ||||||
Warrick, IN Smelter [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Capacity closure | t | 269,000 | 269,000 | ||||||
Pocos de Caldas Smelter [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Capacity closure | t | 96,000 | 96,000 | ||||||
Capacity of lines under review | t | 200,000 | 62,000 | ||||||
Point Henry Smelter [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Percentage of power supply | 40.00% | 40.00% | ||||||
Other Exit Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | $ 438 | 693 | 245 | |||||
Restructuring and other charges after tax and noncontrolling interest | 281 | 443 | 183 | |||||
Shutdown and Curtailment Actions [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 246 | 208 | ||||||
Restructuring and other charges after tax and noncontrolling interest | 118 | |||||||
Asset impairment charges | $ 217 | $ 166 | ||||||
Number of employees associated with layoff costs | Employees | 3,100 | 3,100 | 1,790 | |||||
Inventory write down | $ 67 | |||||||
Inventory write down after tax and noncontrolling interests | $ 47 | |||||||
Shutdown and Curtailment Actions [Member] | Corporate [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of employees associated with layoff costs | Employees | 30 | |||||||
Shutdown and Curtailment Actions [Member] | Global Rolled Products [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of employees associated with layoff costs | Employees | 470 | |||||||
Shutdown and Curtailment Actions [Member] | Primary Metals [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of employees associated with layoff costs | Employees | 1,800 | 1,800 | 1,210 | |||||
Shutdown and Curtailment Actions [Member] | Alumina [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of employees associated with layoff costs | Employees | 1,300 | 1,300 | 80 | |||||
Shutdown and Curtailment Actions [Member] | Australia [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Asset impairment charges | $ 34 | |||||||
Asset impairment charges after taxes and noncontrolling interests | 14 | |||||||
Gain on sale of land | 18 | |||||||
Gain on sale of land after tax | 13 | |||||||
Divested Businesses [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | $ 332 | |||||||
Restructuring and other charges after tax and noncontrolling interest | 163 | |||||||
Divested Businesses [Member] | Global Rolled Products [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 161 | |||||||
Restructuring and other charges after tax and noncontrolling interest | 151 | |||||||
Other Miscellaneous Items [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 4 | 18 | 17 | |||||
Restructuring and other charges after tax and noncontrolling interest | 7 | 11 | 12 | |||||
Other Adjustments [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 14 | |||||||
Restructuring and other charges after tax and noncontrolling interest | 11 | |||||||
Restructuring Programs Layoffs 2014 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Adjustments associated with divestitures | 143 | |||||||
Adjustment associated with divestitures after tax and noncontrolling interest | $ 102 | |||||||
Number of positions | Employees | 2,100 | 2,100 | ||||||
Restructuring charges for layoffs | $ 62 | 141 | ||||||
Restructuring Programs Layoffs 2014 [Member] | Corporate [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of positions | Employees | 475 | 475 | ||||||
Restructuring Programs Layoffs 2014 [Member] | Global Rolled Products [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of positions | Employees | 90 | 90 | ||||||
Restructuring Programs Layoffs 2014 [Member] | Transportation and Construction Solutions [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of positions | Employees | 425 | 425 | ||||||
Restructuring Programs Layoffs 2014 [Member] | Engineered Products and Solutions [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of positions | Employees | 645 | 645 | ||||||
Restructuring Programs Layoffs 2014 [Member] | Primary Metals [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of positions | Employees | 380 | 380 | ||||||
Restructuring Programs Layoffs 2014 [Member] | Alumina [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of positions | Employees | 85 | 85 | ||||||
Layoff Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | $ 156 | 51 | 87 | |||||
Restructuring and other charges after tax and noncontrolling interest | 36 | 61 | ||||||
Pension Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 30 | 26 | ||||||
Asset Impairment and Accelerated Depreciation [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 84 | 2 | ||||||
Restructuring and other charges after tax and noncontrolling interest | 2 | |||||||
Asset Retirement Obligations [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 76 | 95 | 58 | |||||
Environmental Remediation [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | 86 | $ 47 | $ 12 | |||||
Supplier and Customer Contract [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other charges | $ 65 | |||||||
Restructuring Programs Layoffs 2015 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of positions | Employees | 1,500 | 1,500 | ||||||
Restructuring charges for layoffs | $ 42 | |||||||
Number of employees | Employees | 5,200 | 5,200 |
Restructuring and Other Charg71
Restructuring and Other Charges - 2014 Actions - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2014t | Jun. 30, 2014t | May. 31, 2014t | May. 31, 2013t | Dec. 31, 2015USD ($)Employees | Dec. 31, 2015EUR (€)Employeest | Dec. 31, 2015USD ($)Employeest | Dec. 31, 2014USD ($)EmployeesFacilitiest | Dec. 31, 2013USD ($)Employees | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 735 | € 150 | $ 1,195 | $ 1,168 | $ 782 | ||||
Restructuring and other charges, after-tax and noncontrolling interest | $ 507 | $ 836 | $ 703 | $ 585 | |||||
Number of employees associated with layoff costs | Employees | 1,120 | 1,110 | |||||||
Capacity of lines under review | t | 460,000 | 2,800,000 | 2,800,000 | ||||||
Capacity of lines under review period | 15 months | 12 months | 12 months | ||||||
Accelerated depreciation | $ 58 | ||||||||
Asset impairment charges | $ 335 | $ 406 | 116 | ||||||
Inventory write-down - permanent shutdown and planned demolition of idled structures | 90 | ||||||||
Inventory write-down, after-tax and non-controlling interests | 43 | ||||||||
Corporate [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 83 | $ 39 | $ 433 | ||||||
Transportation and Construction Solutions [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 75 | ||||||||
Engineered Products and Solutions [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 470 | 220 | |||||||
Global Rolled Products [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 45 | 250 | |||||||
Alumina and Primary Metals Segments [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 60 | ||||||||
Corporate [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 185 | 140 | |||||||
Primary Metals [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 340 | ||||||||
Alumina [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 85 | ||||||||
Massena East Smelter [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Reduction in production - result of market conditions, in mt per year | t | 84,000 | ||||||||
Point Henry Smelter [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Reduction in production - result of market conditions, in mt per year | t | 190,000 | ||||||||
Pocos de Caldas Smelter [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Capacity of lines under review | t | 200,000 | 62,000 | |||||||
Sao Luis Smelter [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Capacity of lines under review | t | 85,000 | ||||||||
Massena East Ny And Point Henry And Yennora [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Reduction in production - result of market conditions, in mt per year | t | 200,000 | ||||||||
Portovesme [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Capacity of lines under review | t | 150,000 | ||||||||
Other Exit Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 438 | $ 693 | $ 245 | ||||||
Restructuring and other charges, after-tax and noncontrolling interest | 281 | 443 | 183 | ||||||
Divested Businesses [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 332 | ||||||||
Restructuring and other charges, after-tax and noncontrolling interest | 163 | ||||||||
Divested Businesses [Member] | Global Rolled Products [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 161 | ||||||||
Restructuring and other charges, after-tax and noncontrolling interest | 151 | ||||||||
Temporary Curtailment [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 68 | ||||||||
Restructuring and other charges, after-tax and noncontrolling interest | 45 | ||||||||
Layoff Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 156 | 51 | 87 | ||||||
Restructuring and other charges, after-tax and noncontrolling interest | 36 | 61 | |||||||
Restructuring Programs Layoffs 2014 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of positions separated | Employees | 2,100 | 2,100 | |||||||
Cash payments made against the layoff reserves | $ 62 | $ 141 | |||||||
Restructuring Programs Layoffs 2014 [Member] | Corporate [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of positions separated | Employees | 475 | 475 | |||||||
Restructuring Programs Layoffs 2014 [Member] | Transportation and Construction Solutions [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 360 | ||||||||
Number of positions separated | Employees | 425 | 425 | |||||||
Restructuring Programs Layoffs 2014 [Member] | Engineered Products and Solutions [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of positions separated | Employees | 645 | 645 | |||||||
Restructuring Programs Layoffs 2014 [Member] | Global Rolled Products [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of positions separated | Employees | 90 | 90 | |||||||
Restructuring Programs Layoffs 2014 [Member] | Primary Metals [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of positions separated | Employees | 380 | 380 | |||||||
Restructuring Programs Layoffs 2014 [Member] | Alumina [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of positions separated | Employees | 85 | 85 | |||||||
Asset Impairment [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 34 | 3 | |||||||
Restructuring and other charges, after-tax and noncontrolling interest | 26 | 2 | |||||||
Other Miscellaneous Items [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 4 | 18 | 17 | ||||||
Restructuring and other charges, after-tax and noncontrolling interest | 7 | 11 | 12 | ||||||
Asset Impairment and Accelerated Depreciation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 84 | 2 | |||||||
Restructuring and other charges, after-tax and noncontrolling interest | 2 | ||||||||
Small Layoff Reserves Related to Prior Periods [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 28 | ||||||||
Restructuring and other charges, after-tax and noncontrolling interest | 21 | ||||||||
Shutdown and Curtailment Actions [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 246 | $ 208 | |||||||
Restructuring and other charges, after-tax and noncontrolling interest | $ 118 | ||||||||
Number of employees associated with layoff costs | Employees | 3,100 | 3,100 | 1,790 | ||||||
Accelerated depreciation | $ 204 | ||||||||
Asset impairment charges | $ 217 | 166 | |||||||
Amount of book value of asset write off | 183 | ||||||||
Inventory write-down - permanent shutdown and planned demolition of idled structures | 67 | ||||||||
Inventory write-down, after-tax and non-controlling interests | $ 47 | ||||||||
Shutdown and Curtailment Actions [Member] | Corporate [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 30 | ||||||||
Shutdown and Curtailment Actions [Member] | Global Rolled Products [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 470 | ||||||||
Shutdown and Curtailment Actions [Member] | Primary Metals [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 1,800 | 1,800 | 1,210 | ||||||
Shutdown and Curtailment Actions [Member] | Alumina [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees associated with layoff costs | Employees | 1,300 | 1,300 | 80 | ||||||
Shutdown and Curtailment Actions [Member] | Australia [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of facilities accelerated depreciation write off | Facilities | 3 | ||||||||
Asset impairment charges | $ 34 | ||||||||
Pension Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 30 | $ 26 | |||||||
Asset Retirement Obligations [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 76 | 95 | 58 | ||||||
Other exit costs | 95 | 48 | |||||||
Environmental Remediation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 86 | 47 | 12 | ||||||
Other exit costs | 42 | 5 | |||||||
Supplier and Customer Contract [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 65 | ||||||||
Other exit costs | $ 46 | 2 | |||||||
Restructuring Programs Layoffs 2013 [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Total number of employees already laid off | Employees | 2,870 | 2,870 | 2,870 | ||||||
Number of positions separated | Employees | 2,500 | 2,500 | 2,910 | ||||||
Cash payments made against the layoff reserves | $ 7 | $ 39 | $ 33 |
Restructuring and Other Charg72
Restructuring and Other Charges - 2013 Actions - Additional Information (Detail) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2013Potlinet | May. 31, 2013Potlinet | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€)t | Dec. 31, 2015USD ($)t | Dec. 31, 2014USD ($)Employees | Dec. 31, 2013USD ($)Employees | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | $ 735,000,000 | € 150 | $ 1,195,000,000 | $ 1,168,000,000 | $ 782,000,000 | ||
Restructuring and other charges, after-tax and noncontrolling interest | $ 507,000,000 | $ 836,000,000 | $ 703,000,000 | $ 585,000,000 | |||
Number of employees associated with layoff costs | Employees | 1,120 | 1,110 | |||||
Reduction in production - result of market conditions, in metric tons per year | t | 460,000 | 2,800,000 | 2,800,000 | ||||
Capacity of lines under review period | 15 months | 12 months | 12 months | ||||
Accelerated depreciation | $ 58,000,000 | ||||||
Other asset impairment charges | $ 335,000,000 | $ 406,000,000 | $ 116,000,000 | ||||
Inventory write-down - permanent shutdown and planned demolition of idled structures | 90,000,000 | ||||||
Inventory write-down, after-tax and non-controlling interests | 43,000,000 | ||||||
Minimum amount of cash payments expected to be paid beyond the end of the current annual period | 10,000,000 | ||||||
Maximum amount of cash payments expected to be paid beyond the end of the current annual period | 15,000,000 | ||||||
Primary Metals [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees associated with layoff costs | Employees | 340 | ||||||
Transportation and Construction Solutions [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees associated with layoff costs | Employees | 75 | ||||||
Engineered Products and Solutions [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees associated with layoff costs | Employees | 470 | 220 | |||||
Global Rolled Products [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees associated with layoff costs | Employees | 45 | 250 | |||||
Alumina [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees associated with layoff costs | Employees | 85 | ||||||
Corporate [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees associated with layoff costs | Employees | 185 | 140 | |||||
Global Rolled Products Segment [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees associated with layoff costs | Employees | 590 | ||||||
Retirement Of Previously Idled Structure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | $ 25,000,000 | ||||||
Restructuring and other charges, after-tax and noncontrolling interest | 17,000,000 | ||||||
Write Off Of Capitalized Structure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 13,000,000 | ||||||
Restructuring and other charges, after-tax and noncontrolling interest | 25,000,000 | ||||||
Fusina and Massena East [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other asset impairment charges | 18,000,000 | ||||||
Baie Comeau Smelter [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of potlines to be shutdown and demolished | Potline | 1 | 2 | |||||
Reduction in production - result of market conditions, in mt per year | t | 105,000 | ||||||
Quebec Canada [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in production - result of market conditions, in mt per year | t | 41,000 | ||||||
Reduction in production - result of market conditions, in mt per year | t | 280,000 | ||||||
Fusina Italy [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in production - result of market conditions, in mt per year | t | 44,000 | ||||||
Reduction in production - result of market conditions, in metric tons per year | t | 84,000 | ||||||
Exit Costs [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | $ 114,000,000 | ||||||
Exit Costs [Member] | Primary Metals [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees associated with layoff costs | Employees | 550 | ||||||
Permanent Shutdown and Planned Demolition of Idled Structures [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other exit costs | $ 55,000,000 | ||||||
Operating Supplies [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Inventory write-down - permanent shutdown and planned demolition of idled structures | 9,000,000 | ||||||
Inventory write-down, after-tax and non-controlling interests | 6,000,000 | ||||||
Asset Retirement Obligations [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 76,000,000 | $ 95,000,000 | 58,000,000 | ||||
Other exit costs | 95,000,000 | 48,000,000 | |||||
Environmental Remediation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 86,000,000 | 47,000,000 | 12,000,000 | ||||
Other exit costs | 42,000,000 | 5,000,000 | |||||
Supplier and Customer Contract [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 65,000,000 | ||||||
Other exit costs | 46,000,000 | 2,000,000 | |||||
Restructuring Programs Layoffs 2013 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash payments made against the layoff reserves | 7,000,000 | 39,000,000 | 33,000,000 | ||||
Legal Matter [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 391,000,000 | ||||||
Restructuring and other charges, after-tax and noncontrolling interest | 305,000,000 | ||||||
Other Exit Costs [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 438,000,000 | 693,000,000 | 245,000,000 | ||||
Restructuring and other charges, after-tax and noncontrolling interest | 281,000,000 | 443,000,000 | 183,000,000 | ||||
Layoff Costs [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 156,000,000 | 51,000,000 | 87,000,000 | ||||
Restructuring and other charges, after-tax and noncontrolling interest | 36,000,000 | 61,000,000 | |||||
Pension Benefits [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 9,000,000 | ||||||
Asset Impairments and Retirements Costs [Member] | Retirement Of Previously Idled Structure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 12,000,000 | ||||||
Restructuring and other charges, after-tax and noncontrolling interest | 8,000,000 | ||||||
Other Miscellaneous Items [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 4,000,000 | 18,000,000 | 17,000,000 | ||||
Restructuring and other charges, after-tax and noncontrolling interest | $ 7,000,000 | 11,000,000 | 12,000,000 | ||||
Small Layoff Reserves Related to Prior Periods [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 28,000,000 | ||||||
Restructuring and other charges, after-tax and noncontrolling interest | 21,000,000 | ||||||
Restructuring reserve, other adjustment | 8,000,000 | ||||||
Restructuring reserve, other adjustment, after-tax | 6,000,000 | ||||||
Asset Impairment [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges | 34,000,000 | 3,000,000 | |||||
Restructuring and other charges, after-tax and noncontrolling interest | $ 26,000,000 | $ 2,000,000 |
Restructuring and Other Charg73
Restructuring and Other Charges - Schedule of Restructuring and Other Charges by Reportable Segments, Pretax (Detail) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 735 | € 150 | $ 1,195 | $ 1,168 | $ 782 |
Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 1,112 | 1,129 | 349 | ||
Corporate [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 83 | 39 | 433 | ||
Alumina [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 233 | 287 | 11 | ||
Primary Metals [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 691 | 553 | 295 | ||
Global Rolled Products [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 131 | 266 | 15 | ||
Engineered Products and Solutions [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 49 | 13 | 12 | ||
Transportation and Construction Solutions [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 8 | $ 10 | $ 16 |
Restructuring and Other Charg74
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve beginning balance | $ 132 | $ 138 | $ 111 |
Cash payments | (123) | (213) | (74) |
Restructuring charges | 532 | 453 | 286 |
Other | (291) | (246) | (185) |
Restructuring reserve ending balance | 250 | 132 | 138 |
Layoff Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve beginning balance | 98 | 96 | 59 |
Cash payments | (111) | (191) | (63) |
Restructuring charges | 299 | 259 | 201 |
Other | (60) | (66) | (101) |
Restructuring reserve ending balance | 226 | 98 | 96 |
Other Exit Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve beginning balance | 34 | 42 | 52 |
Cash payments | (12) | (22) | (11) |
Restructuring charges | 233 | 194 | 85 |
Other | (231) | (180) | (84) |
Restructuring reserve ending balance | $ 24 | $ 34 | $ 42 |
Restructuring and Other Charg75
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Parenthetical) (Detail) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Other layoff cost including reclassification in pension cost | $ 291 | $ 246 | $ 185 | ||
Restructuring and other charges | $ 735 | € 150 | 1,195 | 1,168 | 782 |
Pension Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other layoff cost including reclassification in pension cost | 35 | 26 | 92 | ||
Restructuring and other charges | 30 | 26 | |||
Asset Retirement Obligations [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 76 | 95 | 58 | ||
Environmental Remediation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 86 | $ 47 | $ 12 |
Goodwill and Other Intangible76
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 14, 2014 | |
Goodwill [Line Items] | ||||||
Goodwill gross, beginning balance | $ 7,006 | $ 5,174 | ||||
Accumulated impairment losses, beginning balance | (1,759) | (1,759) | ||||
Goodwill, beginning balance | 5,247 | 3,415 | ||||
Acquisitions | 261 | 1,898 | ||||
Divestitures | (1) | (3) | ||||
Impairment | $ (25) | (25) | $ (1,731) | |||
Translation | (81) | (63) | ||||
Goodwill gross, ending balance | 7,185 | $ 5,174 | 7,185 | 7,006 | 5,174 | |
Accumulated impairment losses, ending balance | (1,784) | (1,759) | (1,784) | (1,759) | (1,759) | |
Goodwill, ending balance | 5,401 | 3,415 | 5,247 | 3,415 | 3,415 | |
Alumina [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross, beginning balance | 8 | 9 | ||||
Goodwill, beginning balance | 8 | 9 | ||||
Divestitures | (3) | |||||
Translation | (2) | 2 | ||||
Goodwill gross, ending balance | 6 | 9 | 6 | 8 | 9 | |
Goodwill, ending balance | 6 | 9 | 8 | 9 | 9 | |
Primary Metals [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross, beginning balance | 989 | 989 | ||||
Accumulated impairment losses, beginning balance | (989) | (989) | ||||
Impairment | (25) | (1,731) | ||||
Goodwill gross, ending balance | 989 | 989 | 989 | 989 | 989 | |
Accumulated impairment losses, ending balance | (989) | (989) | (989) | (989) | (989) | |
Global Rolled Products [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross, beginning balance | 210 | 218 | ||||
Goodwill, beginning balance | 210 | 218 | ||||
Divestitures | (1) | |||||
Translation | (8) | (8) | ||||
Goodwill gross, ending balance | 201 | 218 | 201 | 210 | 218 | |
Goodwill, ending balance | 201 | 218 | 210 | 218 | 218 | |
Engineered Products and Solutions [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross, beginning balance | 4,458 | 2,606 | ||||
Goodwill, beginning balance | 4,458 | 2,606 | ||||
Acquisitions | 261 | 1,898 | ||||
Translation | (59) | (46) | ||||
Goodwill gross, ending balance | 4,660 | 2,606 | 4,660 | 4,458 | 2,606 | |
Goodwill, ending balance | 4,660 | 2,606 | 4,458 | 2,606 | 2,606 | $ 1,801 |
Transportation and Construction Solutions [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross, beginning balance | 114 | 117 | ||||
Accumulated impairment losses, beginning balance | (28) | (28) | ||||
Goodwill, beginning balance | 86 | 89 | ||||
Impairment | (25) | |||||
Translation | (3) | (3) | ||||
Goodwill gross, ending balance | 111 | 117 | 111 | 114 | 117 | |
Accumulated impairment losses, ending balance | (53) | (28) | (53) | (28) | (28) | |
Goodwill, ending balance | 58 | 89 | 86 | 89 | 89 | |
Corporate [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill gross, beginning balance | 1,227 | 1,235 | ||||
Accumulated impairment losses, beginning balance | (742) | (742) | ||||
Goodwill, beginning balance | 485 | 493 | ||||
Translation | (9) | (8) | ||||
Goodwill gross, ending balance | 1,218 | 1,235 | 1,218 | 1,227 | 1,235 | |
Accumulated impairment losses, ending balance | (742) | (742) | (742) | (742) | (742) | |
Goodwill, ending balance | $ 476 | $ 493 | $ 485 | $ 493 | $ 493 |
Goodwill and Other Intangible77
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)Segment | |
Goodwill [Line Items] | |
Number of reportable segments | Segment | 5 |
Alumina [Member] | |
Goodwill [Line Items] | |
Segment reporting, goodwill | $ 146 |
Global Rolled Products [Member] | |
Goodwill [Line Items] | |
Segment reporting, goodwill | 59 |
Engineered Products and Solutions [Member] | |
Goodwill [Line Items] | |
Segment reporting, goodwill | 253 |
Transportation and Construction Solutions [Member] | |
Goodwill [Line Items] | |
Segment reporting, goodwill | $ 18 |
Alcoa [Member] | |
Goodwill [Line Items] | |
Number of reportable segments | Segment | 4 |
Goodwill and Other Intangible78
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill | $ 25,000,000 | $ 25,000,000 | $ 1,731,000,000 | |
Amortization expense related to the intangible assets | 77,000,000 | $ 69,000,000 | 73,000,000 | |
Transportation Construction and Primary Metals [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill amount after noncontrolling interest | $ 1,719,000,000 | |||
Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Expected amortization for the year 2016 | 75,000,000 | 75,000,000 | ||
Expected amortization for the year 2017 | 75,000,000 | 75,000,000 | ||
Expected amortization for the year 2018 | 75,000,000 | 75,000,000 | ||
Expected amortization for the year 2019 | 75,000,000 | 75,000,000 | ||
Expected amortization for the year 2020 | 75,000,000 | 75,000,000 | ||
Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Expected amortization for the year 2016 | 85,000,000 | 85,000,000 | ||
Expected amortization for the year 2017 | 85,000,000 | 85,000,000 | ||
Expected amortization for the year 2018 | 85,000,000 | 85,000,000 | ||
Expected amortization for the year 2019 | 85,000,000 | 85,000,000 | ||
Expected amortization for the year 2020 | $ 85,000,000 | $ 85,000,000 |
Goodwill and Other Intangible79
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | $ 2,092 | $ 1,599 |
Total amortizable intangible assets, Accumulated amortization | (979) | (908) |
Indefinite-lived trade names and trademarks | 45 | 46 |
Total other intangible assets, Gross carrying amount | 2,137 | 1,645 |
Total other intangible assets, Accumulated amortization | (979) | (908) |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | 969 | 973 |
Total amortizable intangible assets, Accumulated amortization | (801) | (775) |
Patent and Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | 135 | 133 |
Total amortizable intangible assets, Accumulated amortization | (104) | (98) |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | 988 | 493 |
Total amortizable intangible assets, Accumulated amortization | $ (74) | $ (35) |
Acquisitions and Divestitures -
Acquisitions and Divestitures - 2015 Acquisitions - Additional Information (Detail) $ / shares in Units, € in Millions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||||||
Jul. 31, 2015USD ($)shares | Mar. 31, 2015EUR (€)Employeesshares | Mar. 31, 2015USD ($)Employeesshares | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)Trancheshares | Dec. 31, 2014USD ($)Employees | Dec. 31, 2013USD ($) | Mar. 31, 2015USD ($)$ / shares | Mar. 06, 2015$ / shares | |
Business Acquisition [Line Items] | |||||||||||||||||
Cash paid for business acquisition | $ 205,000,000 | $ 2,458,000,000 | |||||||||||||||
Goodwill | $ 5,401,000,000 | $ 5,247,000,000 | $ 5,401,000,000 | 5,401,000,000 | 5,247,000,000 | $ 3,415,000,000 | |||||||||||
Common stock conversion transaction value | 870,000,000 | 610,000,000 | 870,000,000 | 870,000,000 | 610,000,000 | ||||||||||||
Sale generated in last annual period prior to divestiture | 5,245,000,000 | $ 5,573,000,000 | $ 5,897,000,000 | $ 5,819,000,000 | $ 6,377,000,000 | $ 6,239,000,000 | $ 5,836,000,000 | $ 5,454,000,000 | 22,534,000,000 | 23,906,000,000 | 23,032,000,000 | ||||||
After-tax operating income (ATOI) | 1,906,000,000 | $ 1,968,000,000 | $ 1,267,000,000 | ||||||||||||||
TITAL [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Number of employees | Employees | 650 | 650 | |||||||||||||||
Cash paid for business acquisition | € 188 | $ 204,000,000 | |||||||||||||||
Business acquisition transaction cost | € 1 | $ 1,000,000 | |||||||||||||||
Goodwill | 118,000,000 | ||||||||||||||||
RTI [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Number of employees | Employees | 2,600 | ||||||||||||||||
Goodwill | 240,000,000 | 240,000,000 | 240,000,000 | ||||||||||||||
Common stock conversion transaction value | $ 870,000,000 | $ 870,000,000 | |||||||||||||||
Business acquisition common stock issued, price per share | $ / shares | $ 9.96 | $ 14.48 | |||||||||||||||
Number of shares to be issued upon conversion | $ / shares | $ 2.8315 | ||||||||||||||||
Acquisition price per share | $ / shares | $ 41 | ||||||||||||||||
Number of common stock shares issued in a part of acquisition | shares | 87,000,000 | 87,397,414 | 87,397,414 | ||||||||||||||
Professional fees and costs | $ 25,000,000 | ||||||||||||||||
Professional fees and costs , after tax | $ 19,000,000 | ||||||||||||||||
Sale generated in last annual period prior to divestiture | $ 794,000,000 | ||||||||||||||||
Third-party sales | 309,000,000 | ||||||||||||||||
Goodwill deductible for income tax purpose | 0 | 0 | 0 | ||||||||||||||
Intangible assets | $ 73,000,000 | 73,000,000 | $ 73,000,000 | ||||||||||||||
RTI [Member] | Convertible Notes [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Number of repayment tranches | Tranche | 2 | ||||||||||||||||
Convertible debt, due date of first tranche | Dec. 1, 2015 | ||||||||||||||||
Convertible debt, due date of second tranche | Dec. 31, 2019 | ||||||||||||||||
RTI [Member] | Maximum [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
After-tax operating income (ATOI) | $ (1,000,000) | ||||||||||||||||
RTI [Member] | Maximum [Member] | Convertible Notes [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Conversion of notes to common stock | shares | 27,990,966 |
Acquisitions and Divestitures81
Acquisitions and Divestitures - Summary of Preliminary Allocation of Purchase Price by Major Asset Acquired and Liability Assumed, Amount of Goodwill Recognized (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | |||
Goodwill | $ 5,401 | $ 5,247 | $ 3,415 |
Total assets | 2,003 | 3,515 | |
Liabilities: | |||
Total liabilities | 868 | $ 345 | |
RTI [Member] | |||
Assets: | |||
Cash and cash equivalents | 302 | ||
Receivables from customers | 103 | ||
Inventories | 531 | ||
Prepaid expenses and other current assets | 47 | ||
Properties, plants, and equipment | 436 | ||
Goodwill | 240 | ||
Other noncurrent assets | 93 | ||
Total assets | 1,752 | ||
Liabilities: | |||
Accounts payable | 90 | ||
Other current liabilities | 94 | ||
Long-term debt due within one year | 115 | ||
Long-term debt, less amount due within one year | 385 | ||
Other noncurrent liabilities | 138 | ||
Total liabilities | 822 | ||
Equity: | |||
Additional capital | 60 | ||
Total equity | $ 60 |
Acquisitions and Divestitures82
Acquisitions and Divestitures - 2015 Divestiture - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015USD ($)Employees | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Loss from divestitures before income tax | $ 332 | ||
Net loss, after tax and noncontrolling interest | $ 163 | ||
Stupino Titanium Company [Member] | |||
Business Acquisition [Line Items] | |||
Sale generated in last annual period prior to divestiture | $ 130 | ||
Number of employees | Employees | 1,870 | ||
Russia [Member] | |||
Business Acquisition [Line Items] | |||
Net cash received | $ 30 | ||
Loss from divestitures before income tax | 161 | ||
Net loss, after tax and noncontrolling interest | $ 151 |
Acquisitions and Divestitures83
Acquisitions and Divestitures - 2014 Acquisitions - Additional Information (Detail) | Nov. 19, 2014USD ($)$ / shares | Aug. 31, 2014USD ($) | Jun. 30, 2014USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)EmployeesFacilities | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | ||||||
Cash paid for business acquisition | $ 205,000,000 | $ 2,458,000,000 | ||||
Interest expenses | 498,000,000 | 473,000,000 | $ 453,000,000 | |||
Goodwill | 5,401,000,000 | 5,247,000,000 | 3,415,000,000 | |||
Income tax expense | $ 445,000,000 | $ 320,000,000 | $ 428,000,000 | |||
Weighted average amortization period of intangible asset | 35 years | |||||
Alcoa Fastening Systems and Rings [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,117,000,000 | |||||
Alcoa Forging and Extrusions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 684,000,000 | |||||
Firth Rixson [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition purchase price | $ 2,995,000,000 | $ 2,850,000,000 | ||||
Cash paid for business acquisition | 2,385,000,000 | 2,350,000,000 | ||||
Value of common stock issued | 610,000,000 | $ 500,000,000 | ||||
Common stock issued as part of acquisition | shares | 36,523,010 | |||||
Business acquisition agreement date | Dec. 31, 2020 | |||||
Business acquisition transaction cost | $ 35,000,000 | |||||
Business acquisition common stock issued, price per share | $ / shares | $ 16.69 | |||||
Professional fees and costs | $ 42,000,000 | |||||
Professional fees and costs , after tax | 34,000,000 | |||||
Interest expenses | 13,000,000 | |||||
Interest expenses, after tax | 8,000,000 | |||||
Business acquisition, unsecured bridge term loan | 2,500,000,000 | |||||
Number of operating facilities | Facilities | 13 | |||||
Number of employees | Employees | 2,400 | |||||
Business acquisition sales | $ 81,000,000 | |||||
After-tax operating income | $ (12,000,000) | |||||
Goodwill | 1,801,000,000 | |||||
Income tax expense | 0 | |||||
Business acquisition potential earn-out | $ 150,000,000 | |||||
Business combination contingent consideration earnout period description | 2019 through 2020 | |||||
Firth Rixson [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition potential earn-out | $ 150,000,000 | |||||
Aluminum Brazing Sheet [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of outstanding non controlling interest | 30.00% | |||||
Amount of outstanding non controlling interest | $ 28,000,000 | |||||
Difference between carrying value and fair value in acquisition of non-controlling interest | $ 3,000,000 |
Acquisitions and Divestitures84
Acquisitions and Divestitures - Summary of Final Allocation of Purchase Price by Major Asset Acquired and Liability Assumed, Amount of Goodwill Recognized and Net Present Value of Potential Earn-out (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | |||
Goodwill | $ 5,401 | $ 5,247 | $ 3,415 |
Total assets | 2,003 | 3,515 | |
Liabilities: | |||
Total liabilities | 868 | $ 345 | |
Firth Rixson [Member] | |||
Assets: | |||
Receivables from customers | 193 | ||
Inventories | 227 | ||
Prepaid expenses and other current assets | 22 | ||
Properties, plants, and equipment | 493 | ||
Goodwill | 1,801 | ||
Other noncurrent assets | 758 | ||
Total assets | 3,494 | ||
Liabilities: | |||
Accounts payable | 162 | ||
Other current liabilities | 100 | ||
Contingent consideration | 130 | ||
Other noncurrent liabilities | 107 | ||
Total liabilities | $ 499 |
Acquisitions and Divestitures85
Acquisitions and Divestitures - 2014 Divestiture - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($)EmployeesMillst | Dec. 31, 2013USD ($)Employeest | |
Business Acquisition [Line Items] | |||
Loss from divestitures before income tax | $ 332 | ||
Net loss , after tax and noncontrolling interest | $ 163 | ||
Percent of equity investments in other entity | 40.00% | 40.00% | |
Aluminum Rod Plant [Member] | |||
Business Acquisition [Line Items] | |||
Sale generated in last annual period prior to divestiture | $ 200 | ||
Number of employees | Employees | 60 | ||
2014 Divestitures [Member] | |||
Business Acquisition [Line Items] | |||
Net cash proceeds | $ 247 | ||
Loss from divestitures before income tax | 332 | ||
Net loss , after tax and noncontrolling interest | $ 163 | ||
Alcoa [Member] | |||
Business Acquisition [Line Items] | |||
Percent of equity investments in other entity | 60.00% | 60.00% | |
Alcoa World Alumina and Chemicals [Member] | |||
Business Acquisition [Line Items] | |||
Sale generated in last annual period prior to divestiture | $ 200 | ||
Number of employees | Employees | 500 | ||
Percent of equity investments in other entity | 55.00% | 55.00% | |
Plant capacity, in metric tons per year | t | 778,800 | ||
Mt Holly Smelter [Member] | |||
Business Acquisition [Line Items] | |||
Sale generated in last annual period prior to divestiture | $ 280 | ||
Number of employees | Employees | 250 | ||
Percent of equity investments in other entity | 50.33% | 50.33% | |
Plant capacity, in metric tons per year | t | 115,000 | ||
Atlas Holdings Llc [Member] | |||
Business Acquisition [Line Items] | |||
Sale generated in last annual period prior to divestiture | $ 500 | ||
Number of employees | Employees | 750 | ||
Number of rolling mills | Mills | 3 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 811 | $ 768 |
Work-in-process | 1,272 | 1,035 |
Bauxite and alumina | 445 | 578 |
Purchased raw materials | 720 | 508 |
Operating supplies | 194 | 193 |
Inventories, total | $ 3,442 | $ 3,082 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Inventories valued on a LIFO basis | $ 1,373 | $ 1,514 | |
Total inventories valued on an average-cost basis | 559 | $ 767 | |
Recognition of income caused by partial liquidations of the lower cost LIFO inventory base, gross | 1 | $ 26 | |
Recognition of income caused by partial liquidations of the lower cost LIFO inventory base, after tax | $ 1 | $ 17 |
Properties, Plants, and Equip88
Properties, Plants, and Equipment, Net - Schedule of Properties, Plants, and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | $ 32,382 | $ 34,051 |
Less: accumulated depreciation, depletion, and amortization | 18,872 | 19,091 |
Properties, plants, and equipment excluding construction work-in-progress | 13,510 | 14,960 |
Construction work-in-progress | 1,305 | 1,466 |
Properties, plants, and equipment, net | 14,815 | 16,426 |
Land and Land Rights, Including Mines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 481 | 548 |
Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 10,340 | 11,300 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 21,561 | 22,203 |
Operating Segments [Member] | Alumina [Member] | Alumina Refining [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 2,387 | 2,750 |
Operating Segments [Member] | Alumina [Member] | Alumina Refining [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 3,709 | 4,165 |
Operating Segments [Member] | Alumina [Member] | Bauxite Mining [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 1,054 | 1,403 |
Operating Segments [Member] | Alumina [Member] | Bauxite Mining [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 428 | 524 |
Operating Segments [Member] | Primary Metals [Member] | Aluminum Smelting [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 3,567 | 3,725 |
Operating Segments [Member] | Primary Metals [Member] | Aluminum Smelting [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 6,831 | 7,210 |
Operating Segments [Member] | Primary Metals [Member] | Power Generation [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 518 | 645 |
Operating Segments [Member] | Primary Metals [Member] | Power Generation [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 1,044 | 1,080 |
Operating Segments [Member] | Global Rolled Products [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 1,298 | 1,276 |
Operating Segments [Member] | Global Rolled Products [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 5,372 | 5,333 |
Operating Segments [Member] | Engineered Products and Solutions [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 658 | 547 |
Operating Segments [Member] | Engineered Products and Solutions [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 2,745 | 2,402 |
Operating Segments [Member] | Transportation and Construction Solutions [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 239 | 239 |
Operating Segments [Member] | Transportation and Construction Solutions [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 682 | 669 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, net | 733 | 819 |
Other [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 619 | 715 |
Other [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | $ 750 | $ 820 |
Properties, Plants, and Equip89
Properties, Plants, and Equipment, Net - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)kt | Dec. 31, 2014USD ($)kt | |
Smelting Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Net carrying value of assets | $ | $ 324 | $ 419 |
Idle capacity of assets, units | kt | 778 | 665 |
Idled Refining Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Net carrying value of assets | $ | $ 53 | $ 62 |
Idle capacity of assets, units | kt | 2,801 | 1,216 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Equity investments | $ 1,476 | $ 1,780 |
Other investments | 209 | 164 |
Investments, total | $ 1,685 | $ 1,944 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions, SAR in Billions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Dec. 31, 2015USD ($)ProjectSubsidiarykt | Dec. 31, 2015SARProjectSubsidiarykt | Dec. 31, 2014USD ($)ProjectSubsidiary | Dec. 31, 2013USD ($) | Dec. 31, 2012kt | |
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 40.00% | |||||
Dividends from equity investments | $ 152 | $ 86 | $ 89 | |||
Expanded capacity amount of processed bauxite, in Kmt | kt | 100 | |||||
Outstanding receivable for labor and other employee-related expenses | 19 | 30 | ||||
Equity investments | 1,476 | 1,780 | ||||
Guarantee issued on behalf of smelting and rolling mill companies | 320 | |||||
Other investments | $ 209 | 164 | ||||
Ma'aden Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Joint venture shareholders agreement period, years | 30 years | 30 years | ||||
Joint venture shareholders agreement, automatic extension additional period, years | 20 years | 20 years | ||||
Ownership interest in joint venture | 74.90% | 74.90% | ||||
Payment for pro rata share of pre-incorporation costs | $ 56 | |||||
Alcoa Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest in joint venture | 25.10% | 25.10% | ||||
Initial investment | $ 80 | |||||
Maaden Alcoa Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest in joint venture at fair market value | 14.90% | 14.90% | ||||
Period Bracket To Exercise Option | 6 months | 6 months | ||||
Period To Open Option Exercise Bracket From Commercial Production Date | 5 years | 5 years | ||||
Amount invested by Alcoa and Aluminum Financing Limited | $ 10,800 | SAR 40.5 | ||||
Capital investment commitment paid-to-date | 29 | 120 | ||||
Equity investments | 928 | 983 | ||||
Maaden Alcoa Joint Venture Smelter And Rolling Mill Companies [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Project financing Investment | 4,311 | |||||
Maaden Alcoa Joint Venture Smelter And Rolling Mill Companies [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Guarantee issued on behalf of smelting and rolling mill companies | 7 | 8 | ||||
Maaden Alcoa Joint Venture Mine And Refinery Company [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Guarantee issued on behalf of smelting and rolling mill companies | $ 3 | 4 | ||||
Alumina Limited [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of amount required to be contributed in the event Alcoa would be required to make payments under the guarantees | 40.00% | 40.00% | ||||
Fixed Income Securities [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other investments | $ 193 | |||||
Equity Securities [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other investments | $ 153 | |||||
Saudi Arabia Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Joint venture agreement period | 20 years | |||||
Canada [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of wholly-owned subsidiaries | Subsidiary | 2 | 2 | 2 | |||
Brazil [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of hydroelectric power projects | Project | 2 | 2 | 2 | |||
Financial Guarantee [Member] | Maaden Alcoa Joint Venture Smelter And Rolling Mill Companies [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt service requirements, principal | $ 142 | |||||
Debt service requirements, interest maximum | 50 | |||||
Financial Guarantee [Member] | Maaden Alcoa Joint Venture Mine And Refinery Company [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt service requirements, principal | 120 | |||||
Debt service requirements, interest maximum | 30 | |||||
Alcoa [Member] | Maaden Alcoa Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Amount invested by Alcoa and Aluminum Financing Limited | 1,100 | |||||
Capital investment commitment paid-to-date | 981 | |||||
Alcoa [Member] | Maaden Alcoa Joint Venture Smelter And Rolling Mill Companies [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Project financing Investment | 142 | |||||
Alcoa [Member] | Maaden Alcoa Joint Venture Mine And Refinery Company [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Project financing Investment | $ 2,232 | |||||
Halco Mining, Inc. [Member] | Boke Investment Company [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Minority interest percentage held by equity interest | 100.00% | 100.00% | ||||
Compagnie Des Bauxites De Guinee [Member] | Boke Investment Company [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Minority interest percentage held by equity interest | 51.00% | 51.00% | ||||
Scenario Two [Member] | Saudi Arabia Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Potential forfeiture of letter of credit | $ 60 | |||||
Canadian Subsidiaries [Member] | Becancour Smelter [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 49.90% | 49.90% | ||||
Smelter Sites [Member] | Canada [Member] | Pechiney Reynolds Quebec, Inc. [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 50.00% | 50.00% | ||||
Smelter Sites [Member] | Pechiny Reynolds Quebec Subsidiary [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 50.10% | 50.10% | ||||
Smelter Sites [Member] | Pechiny Reynolds Quebec Subsidiary [Member] | Becancour Smelter [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 25.05% | 25.05% | ||||
Bauxite Mining [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Projected capacity amount of processed bauxite, in kmt | kt | 4,000 | 4,000 | ||||
Bauxite Mining [Member] | Brazil [Member] | Minerao Rio Do Norte S.A. [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 18.20% | 18.20% | ||||
Bauxite Mining [Member] | Halco Mining, Inc. [Member] | GUINEA | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 45.00% | 45.00% | ||||
Hydroelectric Power [Member] | Canada [Member] | Manicouagan Power Limited Partnership [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 40.00% | 40.00% | ||||
Alumina Refinery [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Projected capacity amount of processed bauxite, in kmt | kt | 1,800 | 1,800 | ||||
Primary Aluminum Smelter [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Projected capacity amount of processed bauxite, in kmt | kt | 740 | 740 | ||||
Rolling Mill [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Projected capacity amount of processed bauxite, in kmt | kt | 380 | 380 | ||||
Alcoa World Alumina and Chemicals [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 55.00% | |||||
Alcoa World Alumina and Chemicals [Member] | Alcoa Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 60.00% | 60.00% | ||||
Alcoa World Alumina and Chemicals [Member] | Maaden Alcoa Joint Venture Mine And Refinery Company [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Project financing Investment | $ 560 | |||||
Alcoa World Alumina and Chemicals [Member] | Alumina Limited [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percent of equity investments in other entity | 40.00% | 40.00% |
Other Noncurrent Assets - Sched
Other Noncurrent Assets - Schedule of Other Noncurrent Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangibles, net | $ 1,158 | $ 737 |
Fair value of derivative contracts | 1,008 | 163 |
Cash surrender value of life insurance | 492 | 506 |
Gas supply prepayment | 288 | |
Prepaid gas transmission contract | 268 | 295 |
Value-added tax receivable | 233 | 294 |
Deferred mining costs, net | 203 | 209 |
Unamortized debt expense | 58 | 65 |
Prepaid pension benefit | 44 | 53 |
Advance related to European Commission Matter in Italy | 111 | |
Other | 254 | 326 |
Other assets, noncurrent, total | $ 4,006 | $ 2,759 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 9,065 | $ 8,798 | $ 1,250 |
Less: amount due within one year | 21 | 29 | |
Long-term debt, excluding amount due within one year | 9,044 | 8,769 | |
Long-term debt | 9,065 | 8,798 | $ 1,250 |
5.55% Notes, Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 750 | 750 | |
Long-term debt | 750 | 750 | |
6.50% Bonds, Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250 | 250 | |
Long-term debt | 250 | 250 | |
6.75% Notes, Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 750 | 750 | |
Long-term debt | 750 | 750 | |
5.72% Notes, Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 750 | 750 | |
Long-term debt | 750 | 750 | |
1.63% Convertible Notes, Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 403 | ||
Long-term debt | 403 | ||
6.150% Notes, Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,000 | 1,000 | |
Long-term debt | 1,000 | 1,000 | |
5.40% Notes, Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,250 | 1,250 | |
Long-term debt | 1,250 | 1,250 | |
5.87% Notes, Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 627 | 627 | |
Long-term debt | 627 | 627 | |
5.125% Notes, Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,250 | 1,250 | |
Long-term debt | 1,250 | 1,250 | |
5.90% Notes, Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 625 | 625 | |
Long-term debt | 625 | 625 | |
6.75% Bonds, Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300 | 300 | |
Long-term debt | 300 | 300 | |
5.95% Notes Due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 625 | 625 | |
Long-term debt | 625 | 625 | |
BNDES Loans, Due 2015-2029 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 174 | 267 | |
Long-term debt | 174 | 267 | |
Iowa Finance Authority Loan, Due 2042 (4.75%) [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 250 | 250 | |
Long-term debt | 250 | 250 | |
Other [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 61 | 104 | |
Long-term debt | $ 61 | $ 104 |
Debt - Schedule of Long-Term 94
Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
5.55% Notes, Due 2017 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.55% |
Debt instrument, maturity date | 2,017 |
6.50% Bonds, Due 2018 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 6.50% |
Debt instrument, maturity date | 2,018 |
6.75% Notes, Due 2018 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 6.75% |
Debt instrument, maturity date | 2,018 |
5.72% Notes, Due 2019 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.72% |
Debt instrument, maturity date | 2,019 |
1.63% Convertible Notes, Due 2019 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 1.63% |
Debt instrument, maturity date | 2,019 |
6.150% Notes, Due 2020 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 6.15% |
Debt instrument, maturity date | 2,020 |
5.40% Notes, Due 2021 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.40% |
Debt instrument, maturity date | 2,021 |
5.87% Notes, Due 2022 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.87% |
Debt instrument, maturity date | 2,022 |
5.125% Notes, Due 2024 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.125% |
Debt instrument, maturity date | 2,024 |
5.90% Notes, Due 2027 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.90% |
Debt instrument, maturity date | 2,027 |
6.75% Bonds, Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 6.75% |
Debt instrument, maturity date | 2,028 |
5.95% Notes Due 2037 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.95% |
Debt instrument, maturity date | 2,037 |
BNDES Loans, Due 2015-2029 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date start | 2,015 |
Debt instrument, maturity date end | 2,029 |
Iowa Finance Authority Loan, Due 2042 (4.75%) [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 4.75% |
Debt instrument, maturity date | 2,042 |
Principal maturities of long-te
Principal maturities of long-term debt - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
Principal amount of long-term debt maturing in year 2016 | $ 21 |
Principal amount of long-term debt maturing in year 2017 | 771 |
Principal amount of long-term debt maturing in year 2018 | 1,039 |
Principal amount of long-term debt maturing in year 2019 | 1,140 |
Principal amount of long-term debt maturing in year 2020 | $ 1,018 |
Debt (Public Debt) - Additional
Debt (Public Debt) - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2014USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)shares | |
Debt Instrument [Line Items] | ||||
Principal amount of convertible notes | $ | $ 1,250 | $ 9,065 | $ 8,798 | |
Convertible notes due date | Jul. 25, 2019 | |||
Number of shares, option exercised | shares | 23.3 | |||
Par value of issued shares | $ 1 | |||
Proceeds from issuance of public debt offering | $ | $ 1,238 | |||
Debt instrument redemption price percentage | 101.00% | |||
5.25% Convertible Notes Due 2014 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount of convertible notes | $ | $ 575 | $ 575 | ||
Convertible notes, interest rate | 5.25% | 5.25% | ||
Convertible notes due date | Mar. 15, 2014 | Mar. 15, 2014 | ||
Number of shares, option exercised | shares | 89 | 89 | ||
Conversion rate, numerator | 155.4908 | |||
Conversion rate, denominator | $ 1,000 | |||
Convertible notes, conversion price | 6.43 | |||
Par value of issued shares | $ 89 | |||
5.125% Senior Notes Due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible notes, interest rate | 5.125% |
Debt (BNDES) - Additional Infor
Debt (BNDES) - Additional Information (Detail) BRL in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($)Agreement | Dec. 31, 2015BRLAgreement | Dec. 31, 2014USD ($) | Dec. 31, 2014BRL | Dec. 31, 2015BRL | Dec. 31, 2014BRL | Jul. 25, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||||
Commitment on loan agreement | $ 85 | BRL 177 | ||||||
Line of credit facility, outstanding borrowings | $ | $ 4,000 | |||||||
Weighted-average interest rate | 8.49% | 8.49% | 8.49% | 8.49% | ||||
Early repayment of outstanding borrowings | $ 15 | BRL 48 | $ 20 | BRL 47 | ||||
Additional borrowing amount | $ | $ 1,238 | |||||||
Interest rate margin | 1.55% | 1.55% | ||||||
Outstanding borrowings | $ 38 | $ 58 | BRL 146 | BRL 156 | ||||
Interest rate of outstanding borrowings | 6.55% | 6.55% | 6.55% | 6.55% | ||||
Loan Agreement with BNDES [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term interest rate | 7.00% | 5.00% | 7.00% | 5.00% | ||||
Weighted-average margin on long term debt | 1.48% | 1.48% | 1.48% | 1.48% | ||||
Number of Subloan agreement | Agreement | 3 | 3 | ||||||
Aluminio [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Early repayment of outstanding borrowings | $ 3 | BRL 10 | $ 5 | BRL 11 | ||||
Three of the Subloans [Member] | Loan Agreement with BNDES [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment on loan agreement | 397 | BRL 687 | ||||||
Two of the Subloans [Member] | Loan Agreement with BNDES [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal and interest | BRL | 667 | |||||||
Third Subloan [Member] | Loan Agreement with BNDES [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal and interest | BRL | 20 | |||||||
BNDES Loans, Due 2014-2029 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, outstanding borrowings | 136 | 209 | BRL 522 | BRL 560 | ||||
Additional borrowing amount | $ 1 | BRL 1 | $ 1 | BRL 2 |
Debt (Credit Facilities) - Addi
Debt (Credit Facilities) - Additional Information (Detail) BRL in Millions | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Dec. 31, 2015BRL | Dec. 31, 2014USD ($) | Dec. 31, 2014BRL | Dec. 31, 2013USD ($) | Jul. 25, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||
Line of credit facility, outstanding borrowings | $ 4,000,000,000 | |||||
Limit of requested increases in lender commitments | $ 990,000,000 | $ 500,000,000 | ||||
Letters of credit sublimit under credit facility | $ 1,000,000,000 | |||||
Debt instrument, maturity date | Jul. 25, 2019 | Jul. 25, 2019 | ||||
Extension of maturity period | 1 year | 1 year | ||||
Debt instrument, extended maturity date | Jul. 25, 2020 | Jul. 25, 2020 | ||||
Agreement termination date | Jul. 25, 2014 | Jul. 25, 2014 | ||||
Line of credit facility, borrowing | $ 1,890,000,000 | $ 1,640,000,000 | ||||
Line of credit facility, repayment | $ 15,000,000 | BRL 48 | $ 20,000,000 | BRL 47 | ||
Weighted-average interest rate | 8.49% | 8.49% | 8.49% | 8.49% | ||
Weighted-average maturity days | 69 days | 69 days | 67 days | 67 days | 213 days | |
Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, outstanding borrowings | $ 0 | $ 0 | ||||
Amounts borrowed under the credit facility | 0 | 0 | ||||
Alcoa [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, repayment | $ 1,890,000,000 | $ 1,640,000,000 | ||||
Weighted-average interest rate | 1.61% | 1.61% | 1.54% | 1.54% | 1.57% | |
Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on LIBOR loans | 0.50% | 0.50% | ||||
Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on LIBOR loans | 1.50% | 1.50% | ||||
Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility, term | 5 years | 5 years | ||||
Debt instrument, maturity date | Jul. 25, 2017 | Jul. 25, 2017 | ||||
Amounts borrowed under the credit facility | $ 0 | $ 0 | ||||
Commercial Paper [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fees paid to maintain credit facility | 0.25% | 0.25% | ||||
Outstanding borrowings | $ 3,750,000,000 | |||||
Expected Maturity Date Year 2016 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Limit of requested increases in lender commitments | $ 890,000,000 | |||||
Agreement termination date | Dec. 31, 2016 | Dec. 31, 2016 | ||||
Expected Maturity Date Year 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Limit of requested increases in lender commitments | $ 100,000,000 | |||||
Agreement termination date | Dec. 31, 2017 | Dec. 31, 2017 |
Debt (Short-Term Borrowings) -
Debt (Short-Term Borrowings) - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Short-term borrowings | $ 38 | $ 54 |
Accounts payable settlement arrangements | $ 32 | $ 50 |
Debt (Commercial Paper) - Addit
Debt (Commercial Paper) - Additional Information (Detail) - Commercial Paper [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Aggregate outstanding principal amount | $ 0 | $ 0 | |
Average outstanding commercial paper | $ 198,000,000 | $ 257,000,000 | |
Long-term interest rate | 0.60% | 0.60% | 0.80% |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity date, description | 1 year |
Other Noncurrent Liabilities101
Other Noncurrent Liabilities and Deferred Credits - Schedule of Other Noncurrent Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Environmental remediation (N) | $ 554 | $ 473 |
Asset retirement obligations (C) | 551 | 587 |
Income taxes (T) | 521 | 377 |
Accrued compensation and retirement costs | 329 | 346 |
Fair value of derivative contracts (X) | 208 | 376 |
Liability related to the resolution of a legal matter (N) | 148 | 222 |
Contingent payment related to an acquisition (F) | 130 | 130 |
Deferred alumina sales revenue | 84 | 93 |
Deferred credit related to derivative contract (X) | 62 | |
Other | 213 | 230 |
Other noncurrent liabilities and deferred credits, total | $ 2,738 | $ 2,896 |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Noncontrolling Shareholders' Interests (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Other | $ 14 | $ 14 |
Noncontrolling shareholders' interests | 2,085 | 2,488 |
Alcoa World Alumina and Chemicals [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Noncontrolling shareholders' interests | $ 2,071 | $ 2,474 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | ||||
Charges related to legal matters included in noncontrolling interests | $ 391 | |||
Noncontrolling Interests [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Charges related to legal matters included in noncontrolling interests | 17 | |||
Aluminum Brazing Sheet [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percentage of acquisition of outstanding noncontrolling interest | 30.00% | |||
Alumina Limited [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Proceeds from noncontrolling shareholder | $ 2 | $ 43 | $ 9 |
Contingencies and Commitments -
Contingencies and Commitments - Additional Information (Detail) | Oct. 09, 2012USD ($)Installment | Nov. 19, 2009EUR (€)Plant | Feb. 27, 2008USD ($) | Jul. 31, 2014Plant | Jun. 30, 2012EUR (€)Installment | Jun. 30, 2012USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2013USD ($) | Sep. 30, 2012USD ($) | Jun. 30, 2012USD ($) | Dec. 31, 2015EUR (€)Installment | Dec. 31, 2015USD ($)Installment | Dec. 31, 2014USD ($)Country | Dec. 31, 2013USD ($) | Dec. 31, 2013EUR (€) | Dec. 31, 2013USD ($) | Oct. 09, 2013USD ($) | Feb. 21, 2013EUR (€) | Feb. 21, 2013USD ($) | Dec. 31, 2012t | Jun. 30, 2012USD ($)Installment | Mar. 26, 2012EUR (€) | Mar. 26, 2012USD ($) | Sep. 30, 2010t | Nov. 19, 2009USD ($) |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Restructuring and other charges | $ 735,000,000 | € 150,000,000 | $ 1,195,000,000 | $ 1,168,000,000 | $ 782,000,000 | |||||||||||||||||||||
Amount of settlement offer rejected | $ 60,000,000 | |||||||||||||||||||||||||
Charges recorded of settlement amount | 0 | |||||||||||||||||||||||||
Legal costs | $ 391,000,000 | |||||||||||||||||||||||||
Civil settlement | 85,000,000 | |||||||||||||||||||||||||
Government investigations and legal charges | 384,000,000 | |||||||||||||||||||||||||
Management estimate for maximum exposure from class action | € 85,000,000 | $ 110,000,000 | ||||||||||||||||||||||||
Charge recorded in Restructuring and other charges | 34,000,000 | $ 37,000,000 | ||||||||||||||||||||||||
Number of smelters | Plant | 2 | |||||||||||||||||||||||||
Recovery amount | € 303,000,000 | $ 375,000,000 | ||||||||||||||||||||||||
Reduction in recovery amount | 53,000,000 | $ 65,000,000 | ||||||||||||||||||||||||
Payments to Italian Government | € 250,000,000 | $ 310,000,000 | ||||||||||||||||||||||||
Payments to Italian Government, installments amount | € 50,000,000 | $ 69,000,000 | ||||||||||||||||||||||||
Number of installments, litigation payment | Installment | 5 | 5 | ||||||||||||||||||||||||
Noncurrent asset excess of total assets | € | 91,000,000 | |||||||||||||||||||||||||
Amount owned by owed by the Italian Government to Alcoa | € | 53,000,000 | |||||||||||||||||||||||||
Interest previously paid,write-off | € | € 6,000,000 | |||||||||||||||||||||||||
Amount of curtailment, metric-tons-per-year | t | 44,000 | |||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Provision for contract losses | $ 0 | |||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Provision for contract losses | € 76,000,000 | 97,000,000 | ||||||||||||||||||||||||
Aluminium Bahrain [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Cash payment for suit settlement | 103,000,000 | |||||||||||||||||||||||||
Restructuring and other charges | 103,000,000 | |||||||||||||||||||||||||
Alba [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Period of alleged conspiracy, years | 15 years | |||||||||||||||||||||||||
Damages claimed, value | $ 1,000,000,000 | |||||||||||||||||||||||||
Agreed amount payable on settlement | $ 85,000,000 | |||||||||||||||||||||||||
Litigation settlement number of installments | Installment | 2 | |||||||||||||||||||||||||
Contingency settlement agreement amount paid | $ 42,500,000 | $ 42,500,000 | ||||||||||||||||||||||||
Contingency settlement agreement future payable date | October 9, 2013 | October 9, 2013 | ||||||||||||||||||||||||
Cash payment for suit settlement | $ 40,000,000 | |||||||||||||||||||||||||
Restructuring and other charges | $ 45,000,000 | |||||||||||||||||||||||||
Department of Justice [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Agreed amount payable on settlement | $ 223,000,000 | |||||||||||||||||||||||||
Contingency settlement agreement future payable date | AWA agreed to pay a total of $223, including a fine of $209 payable in five equal installments over four years. The first installment of $41.8, plus a one-time administrative forfeiture of $14, was paid in the first quarter of 2014, the second installment of $41.8 was paid in the first quarter of 2015, and the remaining installments of $41.8 each will be paid in the first quarters of 2016 through 2018 (the third installment was paid on January 8, 2016) | AWA agreed to pay a total of $223, including a fine of $209 payable in five equal installments over four years. The first installment of $41.8, plus a one-time administrative forfeiture of $14, was paid in the first quarter of 2014, the second installment of $41.8 was paid in the first quarter of 2015, and the remaining installments of $41.8 each will be paid in the first quarters of 2016 through 2018 (the third installment was paid on January 8, 2016) | ||||||||||||||||||||||||
Agreement settlement effective date | Jan. 9, 2014 | Jan. 9, 2014 | ||||||||||||||||||||||||
Number of installments | Installment | 5 | 5 | ||||||||||||||||||||||||
Number of years in which installments is payable | 4 years | 4 years | ||||||||||||||||||||||||
Fine payable over four years period | $ 209,000,000 | |||||||||||||||||||||||||
Installments payable in first quarters of 2014 | 41,800,000 | |||||||||||||||||||||||||
One-time administrative forfeiture amount | 14,000,000 | |||||||||||||||||||||||||
Installments payable in first quarters of 2015 | 41,800,000 | |||||||||||||||||||||||||
Installments payable in first quarters of 2016 | 41,800,000 | |||||||||||||||||||||||||
Installments payable in first quarters of 2017 | 41,800,000 | |||||||||||||||||||||||||
Installments payable in first quarters of 2018 | 41,800,000 | |||||||||||||||||||||||||
Department of Justice and Securities Exchange Commission [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Charges recorded of settlement amount | $ 288,000,000 | |||||||||||||||||||||||||
Legal costs | $ 7,000,000 | |||||||||||||||||||||||||
Charges in respect of the investigations | $ 103,000,000 | |||||||||||||||||||||||||
Securities and Exchange Commission [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Agreed amount payable on settlement | $ 175,000,000 | |||||||||||||||||||||||||
Contingency settlement agreement future payable date | The Company agreed to a settlement amount of $175, but will be given credit for the $14 one-time forfeiture payment, which is part of the DOJ resolution, resulting in a total cash payment to the SEC of $161 payable in five equal installments over four years. The first and second installments of $32.2 each were paid to the SEC in the first quarter of 2014 and 2015, respectively, and the remaining installments of $32.2 each will be paid in the first quarters of 2016 through 2018 | The Company agreed to a settlement amount of $175, but will be given credit for the $14 one-time forfeiture payment, which is part of the DOJ resolution, resulting in a total cash payment to the SEC of $161 payable in five equal installments over four years. The first and second installments of $32.2 each were paid to the SEC in the first quarter of 2014 and 2015, respectively, and the remaining installments of $32.2 each will be paid in the first quarters of 2016 through 2018 | ||||||||||||||||||||||||
Cash payment for suit settlement | $ 161,000,000 | |||||||||||||||||||||||||
Number of years in which installments is payable | 4 years | 4 years | ||||||||||||||||||||||||
Installments payable in first quarters of 2014 | $ 32,200,000 | |||||||||||||||||||||||||
One-time administrative forfeiture amount | 14,000,000 | |||||||||||||||||||||||||
Installments payable in first quarters of 2015 | 32,200,000 | |||||||||||||||||||||||||
Installments payable in first quarters of 2016 | 32,200,000 | |||||||||||||||||||||||||
Installments payable in first quarters of 2017 | 32,200,000 | |||||||||||||||||||||||||
Installments payable in first quarters of 2018 | $ 32,200,000 | |||||||||||||||||||||||||
Number of installments | Installment | 5 | 5 | ||||||||||||||||||||||||
Alcoa World Alumina and Chemicals [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of countries | Country | 7 | |||||||||||||||||||||||||
Italy [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of years operating under a power supply structure | 10 years | 10 years | ||||||||||||||||||||||||
Charge related to European Commission announcement | € 173,000,000 | $ 250,000,000 | ||||||||||||||||||||||||
Number of smelters | Plant | 2 | |||||||||||||||||||||||||
Write-off of receivable | € 14,000,000 | 20,000,000 | ||||||||||||||||||||||||
Establishment reserve | € 159,000,000 | $ 230,000,000 | ||||||||||||||||||||||||
Portovesme [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Amount of curtailment, metric-tons-per-year | t | 150,000 | |||||||||||||||||||||||||
IT [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Restructuring and other charges | $ 164,000,000 | |||||||||||||||||||||||||
Noncurrent asset excess of total assets | 100,000,000 | |||||||||||||||||||||||||
Amount owned by owed by the Italian Government to Alcoa | 58,000,000 | |||||||||||||||||||||||||
Interest previously paid,write-off | $ 6,000,000 | |||||||||||||||||||||||||
Alcoa [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Percentage to allocate cost of Alba civil settlement and all legal fees | 85.00% | 85.00% | ||||||||||||||||||||||||
Percentage of civil settlement and all legal costs associated with civil suit and government investigations | 60.00% | 60.00% | ||||||||||||||||||||||||
Alcoa [Member] | Alcoa World Alumina and Chemicals [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Percentage owns on settlement | 60.00% | 60.00% | ||||||||||||||||||||||||
Alumina [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Percentage to allocate cost of Alba civil settlement and all legal fees | 15.00% | 15.00% | ||||||||||||||||||||||||
Percentage of civil settlement and all legal costs associated with civil suit and government investigations | 40.00% | 40.00% | ||||||||||||||||||||||||
Alumina [Member] | Alcoa World Alumina and Chemicals [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Percentage owns on settlement | 40.00% | 40.00% | ||||||||||||||||||||||||
Alcoa Trasformazioni [Member] | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Management estimate for maximum exposure from class action | € 76,000,000 | $ 97,000,000 |
Contingencies and Commitment105
Contingencies and Commitments - Summary of Activity Related to Alba Matter (Detail) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Commitments Contingencies And Litigation [Line Items] | ||||||
Government investigations | $ 735 | € 150 | $ 1,195 | $ 1,168 | $ 782 | |
Income (loss) before income taxes | 248 | 497 | (1,816) | |||
Benefit for income taxes | 445 | 320 | 428 | |||
Net (loss) income | $ (197) | $ 177 | (2,244) | |||
Alba [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Income (loss) before income taxes | 384 | $ 85 | ||||
Benefit for income taxes | 66 | 18 | ||||
Net (loss) income | 318 | 67 | ||||
Alba [Member] | Government Investigation [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Government investigations | 384 | |||||
Alba [Member] | Civil Suit [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Civil suit | 85 | |||||
Alcoa [Member] | Alba [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Reallocation of civil suit | 21 | |||||
Reallocation of legal costs | 20 | |||||
Income (loss) before income taxes | 367 | 51 | ||||
Benefit for income taxes | 66 | 18 | ||||
Net (loss) income | 301 | 33 | ||||
Alcoa [Member] | Alba [Member] | Government Investigation [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Government investigations | 326 | |||||
Alcoa [Member] | Alba [Member] | Civil Suit [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Civil suit | 51 | |||||
Alumina [Member] | Alba [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Reallocation of civil suit | (21) | |||||
Reallocation of legal costs | (20) | |||||
Income (loss) before income taxes | 17 | 34 | ||||
Net (loss) income | 17 | 34 | ||||
Alumina [Member] | Alba [Member] | Government Investigation [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Government investigations | $ 58 | |||||
Alumina [Member] | Alba [Member] | Civil Suit [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Civil suit | $ 34 |
Contingencies and Commitment106
Contingencies and Commitments - Additional Information - 1 (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2009 | |
Loss Contingencies [Line Items] | ||||||
Number of cleanup locations | More than 100 | |||||
Remediation reserve balance | $ 604 | $ 543 | ||||
Remediation reserve balance, classified as a current liability | 50 | 70 | ||||
Increase in remediation reserve | $ 1 | 115 | ||||
Remediation reserve adjustment | 86 | 47 | ||||
Payments related to remediation expenses applied against the reserve | 43 | 46 | ||||
Increase (Decrease) in reserves due to effects of foreign currency translation | $ (16) | 19 | ||||
Actual remediation fieldwork period | 4 years | |||||
Guarantee debt service expiration year | 2,019 | |||||
Firth Rixson [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Increase (Decrease) in reserves due to acquisition | $ 5 | |||||
Minimum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Majority of the project funding period | 2,017 | |||||
Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Majority of the project funding period | 2,021 | |||||
Recurring Costs of Managing Hazardous Substances and Environmental Programs [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Percentage of cost of goods sold | 2.00% | |||||
Massena West, NY [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Remediation reserve balance | $ 234 | 239 | ||||
Grasse River [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Increase in remediation reserve | 61 | |||||
Sherwin, TX site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Remediation reserve balance | 30 | 32 | ||||
Expected portion of funding through 2019 | 15 | |||||
Portovesme [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Increase in remediation reserve | 3 | $ 3 | ||||
Remediation reserve adjustment | 7 | 3 | ||||
Other Sites [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Remediation reserve adjustment | 15 | 16 | ||||
Massena East, Ny and Point Henry and Yennora, Australia and Portovesme [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Remediation reserve adjustment | 42 | |||||
Massena East Smelter [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Remediation reserve adjustment | 52 | |||||
East St. Louis, IL Site [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Remediation reserve balance | 8 | $ 15 | ||||
Pocos De Caldas Smelter and the Anglesea Power Station [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Remediation reserve adjustment | 29 | |||||
Mosjoen [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Increase in remediation reserve | $ 11 | $ 12 | $ 20 |
Contingencies and Commitment107
Contingencies and Commitments - Additional Information - 2 (Detail) € in Millions, BRL in Millions | Apr. 08, 2015USD ($)InstallmentRefinery | Feb. 27, 2014EUR (€) | Feb. 27, 2014USD ($) | Sep. 30, 2013MW | Apr. 08, 2013USD ($) | Apr. 08, 2013BRL | Sep. 30, 2015USD ($) | Jan. 31, 2014 | Oct. 31, 2013USD ($) | Mar. 31, 2013USD ($) | May. 31, 2012USD ($) | May. 31, 2012BRL | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)MWh | Dec. 31, 2015AUDMWh | Dec. 31, 2014USD ($) | Dec. 31, 2014AUD | Dec. 31, 2013USD ($)MW | Dec. 31, 2012USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2004USD ($) | Dec. 31, 2004AUD | Dec. 31, 2002t | Sep. 30, 2011USD ($) | Sep. 30, 2011AUD | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015BRL | Dec. 31, 2015AUD | Dec. 31, 2014BRL | Apr. 08, 2013BRL | Mar. 31, 2013BRL | Jun. 30, 2012Installment |
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Increase in remediation reserve | $ 1,000,000 | $ 115,000,000 | |||||||||||||||||||||||||||||||
Revised project cost submitted to reflect the removal of a larger volume of contaminated soil | 7,000,000 | ||||||||||||||||||||||||||||||||
Total combined assessments | € 241 | $ 263,000,000 | |||||||||||||||||||||||||||||||
Investment percentage under equity method | 40.00% | 40.00% | |||||||||||||||||||||||||||||||
Percentage of power self-sufficiency upon completion of project with full operating capacity | 70.00% | ||||||||||||||||||||||||||||||||
Total energy demand | MW | 690 | ||||||||||||||||||||||||||||||||
Temporarily declined in energy demand | MW | 675 | 675 | |||||||||||||||||||||||||||||||
Number of installments | Installment | 5 | ||||||||||||||||||||||||||||||||
Asset included in other noncurrent assets | 288,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due in 2016 | 74,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due in 2017 | 130,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due in 2018 | 133,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due in 2019 | 126,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due in 2020 | 129,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due thereafter | 1,711,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations expenditures | 131,000,000 | $ 178,000,000 | $ 163,000,000 | ||||||||||||||||||||||||||||||
Operating leases, expense | $ 210,000,000 | 227,000,000 | $ 232,000,000 | ||||||||||||||||||||||||||||||
Long-term operating leases, minimum annual rentals due in 2015 | 243,000,000 | ||||||||||||||||||||||||||||||||
Long-term operating leases, minimum annual rentals due in 2016 | 168,000,000 | ||||||||||||||||||||||||||||||||
Long-term operating leases, minimum annual rentals due in 2017 | 130,000,000 | ||||||||||||||||||||||||||||||||
Long-term operating leases, minimum annual rentals due in 2018 | 100,000,000 | ||||||||||||||||||||||||||||||||
Long-term operating leases, minimum annual rentals due in 2019 | 74,000,000 | ||||||||||||||||||||||||||||||||
Long-term operating leases, minimum annual rentals due thereafter | 138,000,000 | ||||||||||||||||||||||||||||||||
Guarantees of third party related to project financing | 478,000,000 | ||||||||||||||||||||||||||||||||
Guarantees, total amount committed | 320,000,000 | ||||||||||||||||||||||||||||||||
Letters of credit, total amount committed | 510,000,000 | ||||||||||||||||||||||||||||||||
Letters of credit, expiration date | 2,016 | 2,016 | |||||||||||||||||||||||||||||||
Total amount committed under outstanding surety bonds | 159,000,000 | ||||||||||||||||||||||||||||||||
Surety bonds, expiration date | 2,016 | 2,016 | |||||||||||||||||||||||||||||||
Gas Supply Contract [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Letters of credit, total amount committed | $ 200,000,000 | ||||||||||||||||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Expiration date of unconditional purchase obligations for energy | 2,018 | 2,018 | |||||||||||||||||||||||||||||||
Guarantees, expiration date | 2,017 | 2,017 | |||||||||||||||||||||||||||||||
Minimum [Member] | Outstanding bank guarantees [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Guarantees, expiration date | 2,016 | 2,016 | |||||||||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Investment percentage under equity method | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||||||||||||||||||||||
Expiration date of unconditional purchase obligations for energy | 2,036 | 2,036 | |||||||||||||||||||||||||||||||
Guarantees, expiration date | 2,024 | 2,024 | |||||||||||||||||||||||||||||||
Maximum [Member] | Outstanding bank guarantees [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Guarantees, expiration date | 2,023 | 2,023 | |||||||||||||||||||||||||||||||
Energy, Raw Materials, and Other Goods and Services [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Purchase obligations due in 2016 | $ 3,015,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due in 2017 | 1,807,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due in 2018 | 1,569,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due in 2019 | 1,496,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due in 2020 | 1,401,000,000 | ||||||||||||||||||||||||||||||||
Purchase obligations due thereafter | 13,251,000,000 | ||||||||||||||||||||||||||||||||
State and Local Jurisdiction [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Total combined assessments | $ 35,000,000 | BRL 135 | |||||||||||||||||||||||||||||||
Machadinho and Barra Grande [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Commitment to taking share of output in associated projects at cost, in years | 30 years | 30 years | |||||||||||||||||||||||||||||||
Serrado Facao and Estreito Projects [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Commitment to taking share of output in associated projects at cost, in years | 26 years | 26 years | |||||||||||||||||||||||||||||||
Ligestra [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Costs and payments | € 12 | $ 17,000,000 | |||||||||||||||||||||||||||||||
Costs and payments related to damages | 6 | 9,000,000 | |||||||||||||||||||||||||||||||
Payment period | 10 years | 10 years | |||||||||||||||||||||||||||||||
Ligestra [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Percentage of payments and remediation costs | 50.00% | ||||||||||||||||||||||||||||||||
Ligestra [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Percentage of payments and remediation costs | 80.00% | ||||||||||||||||||||||||||||||||
Italian Ministry of Environment and Protection of Land and Sea[Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Soil remediation project, estimated cost | 24 | 33,000,000 | |||||||||||||||||||||||||||||||
Payments for emergency action and natural resource damages | € 18 | $ 25,000,000 | |||||||||||||||||||||||||||||||
Alcoa World Alumina Brasil [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Disallowed tax credits | $ 110,000,000 | BRL 220 | |||||||||||||||||||||||||||||||
Percentage of penalty of the gross disallowed amount | 50.00% | 50.00% | 50.00% | ||||||||||||||||||||||||||||||
Value added tax receivable | $ 41,000,000 | BRL 82 | |||||||||||||||||||||||||||||||
Estimated range of reasonably possible loss, minimum | BRL | BRL 103 | ||||||||||||||||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Estimated range of reasonably possible loss, minimum | $ 0 | ||||||||||||||||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Estimated range of reasonably possible loss, minimum | 27,000,000 | ||||||||||||||||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Fixed Assets [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Disallowed tax credits | BRL | BRL 117 | ||||||||||||||||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Fixed Assets [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Disallowed tax credits | 0 | ||||||||||||||||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Fixed Assets [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Disallowed tax credits | $ 30,000,000 | ||||||||||||||||||||||||||||||||
Barra Grande [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Assured power from installed capacity | MWh | 160 | 160 | |||||||||||||||||||||||||||||||
Investment percentage under equity method | 42.18% | 42.18% | 42.18% | 42.18% | |||||||||||||||||||||||||||||
Total investment in project | 132,000,000 | $ 94,000,000 | BRL 374 | BRL 355 | |||||||||||||||||||||||||||||
Estreito Project [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Investment percentage | 25.49% | 25.49% | |||||||||||||||||||||||||||||||
Assured power from installed capacity | MWh | 150 | 150 | |||||||||||||||||||||||||||||||
Alcoa Aluminio [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Metal sold per month | t | 2,000 | ||||||||||||||||||||||||||||||||
Majority-Owned Subsidiary | Alcoa Of Australia Limited [Member] | Service Agreements [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Gas supply agreement period | 12 years | 12 years | |||||||||||||||||||||||||||||||
Number of alumina refineries to be powered under supplied agreement | Refinery | 3 | ||||||||||||||||||||||||||||||||
Number of installments | Installment | 2 | ||||||||||||||||||||||||||||||||
Gas supply agreement prepayment amount | $ 500,000,000 | ||||||||||||||||||||||||||||||||
Majority-Owned Subsidiary | Alcoa Of Australia Limited [Member] | Service Agreements [Member] | First Installment [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Gas supply agreement prepayment amount | 300,000,000 | ||||||||||||||||||||||||||||||||
Asset included in other noncurrent assets | € 395 | $ 288,000,000 | |||||||||||||||||||||||||||||||
Majority-Owned Subsidiary | Alcoa Of Australia Limited [Member] | Service Agreements [Member] | Second Installment [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Gas supply agreement prepayment amount | $ 200,000,000 | ||||||||||||||||||||||||||||||||
Fusina [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Increase in remediation reserve | $ 0 | $ 12,000,000 | |||||||||||||||||||||||||||||||
Portovesme [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Increase in remediation reserve | 3,000,000 | $ 3,000,000 | |||||||||||||||||||||||||||||||
Baie Comeau Smelter [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Increase in remediation reserve | $ 25,000,000 | ||||||||||||||||||||||||||||||||
Mosjoen [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Increase in remediation reserve | $ 11,000,000 | $ 12,000,000 | $ 20,000,000 | ||||||||||||||||||||||||||||||
Machadinho [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Investment percentage | 30.99% | 30.99% | |||||||||||||||||||||||||||||||
Assured power from installed capacity | MWh | 120 | 120 | |||||||||||||||||||||||||||||||
Serra Do Facao Project [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Assured power from installed capacity | MWh | 65 | 65 | |||||||||||||||||||||||||||||||
Investment percentage under equity method | 34.97% | 34.97% | 34.97% | 34.97% | |||||||||||||||||||||||||||||
Total investment in project | 66,000,000 | $ 52,000,000 | BRL 208 | BRL 178 | |||||||||||||||||||||||||||||
Dampier to Bunbury Natural Gas Pipeline [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Investment percentage | 20.00% | 20.00% | |||||||||||||||||||||||||||||||
Capital investment | $ 17,000,000 | AUD 24,000,000 | $ 141,000,000 | AUD 176,000,000 | |||||||||||||||||||||||||||||
Dampier to Bunbury Natural Gas Pipeline [Member] | Three-Year Equity Call Plan [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Required plan contributions | 39,000,000 | AUD 40,000,000 | |||||||||||||||||||||||||||||||
Prepayments made under the agreement for future gas transmission services | 268,000,000 | AUD 368,000,000 | |||||||||||||||||||||||||||||||
Range of reasonable possible loss, maximum | $ 380,000,000 | AUD 520,000,000 | |||||||||||||||||||||||||||||||
Dampier to Bunbury Natural Gas Pipeline [Member] | New Equity Call Plan [Member] | |||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||
Capital investment | $ 17,000,000 | AUD 22,000,000 | |||||||||||||||||||||||||||||||
Required plan contributions | $ 30,000,000 | AUD 36,000,000 |
Other Expenses (Income), Net -
Other Expenses (Income), Net - Schedule of Other (Income) Expenses, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | |||
Equity loss | $ 89 | $ 92 | $ 68 |
Interest income | (16) | (19) | (13) |
Foreign currency losses (gains), net | 1 | (33) | |
Net gain from asset sales | (74) | (47) | (10) |
Net loss (gain) on mark-to-market derivative contracts (X) | 23 | 15 | (29) |
Other, net | (20) | 5 | (8) |
Other (income) expenses, net | $ 2 | $ 47 | $ (25) |
Other Expenses (Income), Net109
Other Expenses (Income), Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Suriname Mining Interest [Member] | ||
Component of Other Income, Nonoperating [Abstract] | ||
Net gain from asset sales | $ 28 | |
China Rolling Mill Equity Investment [Member] | ||
Component of Other Income, Nonoperating [Abstract] | ||
Net gain from asset sales | $ 19 | $ 14 |
Lake Charles, LA Anode Facility and Sherwin, TX Refinery Site [Member] | ||
Component of Other Income, Nonoperating [Abstract] | ||
Net gain from asset sales | $ 49 |
Cash Flow Information - Schedul
Cash Flow Information - Schedule of Cash Paid for Interest and Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Cash Flows [Abstract] | |||
Interest, net of amount capitalized | $ 487 | $ 441 | $ 433 |
Income taxes, net of amount refunded | $ 345 | $ 301 | $ 200 |
Cash Flow Information - Sche111
Cash Flow Information - Schedule of Cash Paid for Acquisitions Including Non-Controlling Interest (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | ||
Assets acquired | $ 2,003 | $ 3,515 |
Liabilities assumed | (868) | (345) |
Contingent consideration liability | (130) | |
Equity issued | (870) | (610) |
Noncontrolling interest acquired | 31 | |
Increase in Alcoa's shareholders' equity | (60) | (3) |
Cash paid | 205 | 2,458 |
Less: cash acquired | 302 | 45 |
Net cash paid | $ (97) | $ 2,413 |
Cash Flow Information - Additio
Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2015 | Mar. 31, 2015 | Nov. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Schedule Of Common Stock [Line Items] | ||||||||
Common stock conversion transaction value | $ 870 | $ 610 | ||||||
Principal amount of convertible notes | $ 9,065 | 8,798 | $ 1,250 | |||||
Convertible notes due date | Jul. 25, 2019 | |||||||
Number of shares, option exercised | 23,300,000 | |||||||
Business acquisition purchase price | $ (97) | 2,385 | ||||||
Firth Rixson [Member] | ||||||||
Schedule Of Common Stock [Line Items] | ||||||||
Common stock shares issued for conversion transaction | 36,523,010 | |||||||
Business acquisition purchase price | $ 2,995 | |||||||
Issuance of common stock | 37,000,000 | 37,000,000 | ||||||
Common stock value | $ 610 | |||||||
RTI [Member] | ||||||||
Schedule Of Common Stock [Line Items] | ||||||||
Common stock conversion transaction value | $ 870 | $ 870 | ||||||
Common stock shares issued for conversion transaction | 87,000,000 | 87,397,414 | ||||||
5.25% Convertible Notes Due 2014 [Member] | ||||||||
Schedule Of Common Stock [Line Items] | ||||||||
Principal amount of convertible notes | $ 575 | $ 575 | ||||||
Convertible notes, interest rate | 5.25% | 5.25% | ||||||
Convertible notes due date | Mar. 15, 2014 | Mar. 15, 2014 | ||||||
Number of shares, option exercised | 89,000,000 | 89,000,000 |
Segment and Geographic Area 113
Segment and Geographic Area Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting Information [Line Items] | |
Revenue percentage from aluminum and alumina | 80.00% |
Number of reportable segments | 5 |
Aluminum [Member] | |
Segment Reporting Information [Line Items] | |
Sales percentage | 90.00% |
Segment and Geographic Area 114
Segment and Geographic Area Information - Schedule of Operating Results of Alcoa's Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total sales | $ 5,245 | $ 5,573 | $ 5,897 | $ 5,819 | $ 6,377 | $ 6,239 | $ 5,836 | $ 5,454 | $ 22,534 | $ 23,906 | $ 23,032 |
Equity loss | (85) | (90) | (68) | ||||||||
Depreciation, depletion, and amortization | 1,228 | 1,295 | 1,344 | ||||||||
Income taxes | 726 | 812 | 468 | ||||||||
ATOI | 1,906 | 1,968 | 1,267 | ||||||||
Capital expenditures | 1,107 | 1,132 | |||||||||
Equity investments | 1,518 | 1,785 | 1,518 | 1,785 | |||||||
Goodwill | 4,925 | 4,762 | 4,925 | 4,762 | |||||||
Total assets | 29,666 | 31,341 | 29,666 | 31,341 | |||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 26,490 | 28,955 | 28,067 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intersegment sales | 3,982 | 5,057 | 5,034 | ||||||||
Total sales | (3,982) | (5,057) | (5,034) | ||||||||
Third-Party Sales [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Third-party sales | 22,508 | 23,898 | 23,033 | ||||||||
Alumina [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equity loss | (41) | (29) | (4) | ||||||||
Depreciation, depletion, and amortization | 296 | 387 | 426 | ||||||||
Income taxes | 300 | 153 | 66 | ||||||||
ATOI | 746 | 370 | 259 | ||||||||
Capital expenditures | 184 | 246 | |||||||||
Equity investments | 667 | 669 | 667 | 669 | |||||||
Goodwill | 6 | 8 | 6 | 8 | |||||||
Total assets | 6,165 | 7,350 | 6,165 | 7,350 | |||||||
Alumina [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 5,142 | 5,450 | 5,561 | ||||||||
Alumina [Member] | Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intersegment sales | 1,687 | 1,941 | 2,235 | ||||||||
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Third-party sales | 3,455 | 3,509 | 3,326 | ||||||||
Primary Metals [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equity loss | (12) | (34) | (51) | ||||||||
Depreciation, depletion, and amortization | 429 | 494 | 526 | ||||||||
Income taxes | (28) | 203 | (74) | ||||||||
ATOI | 155 | 594 | (20) | ||||||||
Capital expenditures | 156 | 176 | |||||||||
Equity investments | 634 | 890 | 634 | 890 | |||||||
Total assets | 7,324 | 9,308 | 7,324 | 9,308 | |||||||
Primary Metals [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 7,761 | 9,731 | 9,217 | ||||||||
Primary Metals [Member] | Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intersegment sales | 2,170 | 2,931 | 2,621 | ||||||||
Primary Metals [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Third-party sales | 5,591 | 6,800 | 6,596 | ||||||||
Global Rolled Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equity loss | (32) | (27) | (13) | ||||||||
Depreciation, depletion, and amortization | 227 | 235 | 226 | ||||||||
Income taxes | 109 | 89 | 123 | ||||||||
ATOI | 244 | 245 | 292 | ||||||||
Capital expenditures | 307 | 389 | |||||||||
Equity investments | 217 | 226 | 217 | 226 | |||||||
Goodwill | 201 | 210 | 201 | 210 | |||||||
Total assets | 4,498 | 4,908 | 4,498 | 4,908 | |||||||
Global Rolled Products [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 6,363 | 7,536 | 7,284 | ||||||||
Global Rolled Products [Member] | Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intersegment sales | 125 | 185 | 178 | ||||||||
Global Rolled Products [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Third-party sales | 6,238 | 7,351 | 7,106 | ||||||||
Engineered Products and Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation, depletion, and amortization | 233 | 137 | 124 | ||||||||
Income taxes | 282 | 298 | 286 | ||||||||
ATOI | 595 | 579 | 569 | ||||||||
Capital expenditures | 383 | 249 | |||||||||
Goodwill | 4,660 | 4,458 | 4,660 | 4,458 | |||||||
Total assets | 10,732 | 8,800 | 10,732 | 8,800 | |||||||
Engineered Products and Solutions [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 5,342 | 4,217 | 4,054 | ||||||||
Engineered Products and Solutions [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Third-party sales | 5,342 | 4,217 | 4,054 | ||||||||
Transportation and Construction Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation, depletion, and amortization | 43 | 42 | 42 | ||||||||
Income taxes | 63 | 69 | 67 | ||||||||
ATOI | 166 | 180 | 167 | ||||||||
Capital expenditures | 77 | 72 | |||||||||
Goodwill | 58 | 86 | 58 | 86 | |||||||
Total assets | $ 947 | $ 975 | 947 | 975 | |||||||
Transportation and Construction Solutions [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 1,882 | 2,021 | 1,951 | ||||||||
Transportation and Construction Solutions [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Third-party sales | $ 1,882 | $ 2,021 | $ 1,951 |
Segment and Geographic Area 115
Segment and Geographic Area Information - Schedule of Reconciliation of Certain Segment Information to Consolidated Totals (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | $ 5,245 | $ 5,573 | $ 5,897 | $ 5,819 | $ 6,377 | $ 6,239 | $ 5,836 | $ 5,454 | $ 22,534 | $ 23,906 | $ 23,032 |
Operating Segments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | 26,490 | 28,955 | 28,067 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | (3,982) | (5,057) | (5,034) | ||||||||
Corporate [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | $ 26 | $ 8 | $ (1) |
Segment and Geographic Area 116
Segment and Geographic Area Information - Schedule of Segment ATOI to Consolidated Net (Loss) Income Attributable to Alcoa (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total segment ATOI | $ 1,906 | $ 1,968 | $ 1,267 | ||||||||
Metal price lag | (133) | 78 | (45) | ||||||||
Interest expense | (498) | (473) | (453) | ||||||||
Noncontrolling interests | (125) | 91 | (41) | ||||||||
Impairment of goodwill | $ (25) | (25) | (1,731) | ||||||||
Consolidated net (loss) income attributable to Alcoa | $ (701) | $ 44 | $ 140 | $ 195 | $ 159 | $ 149 | $ 138 | $ (178) | (322) | 268 | (2,285) |
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Impact of LIFO | 136 | (54) | 52 | ||||||||
Interest expense | (324) | (308) | (294) | ||||||||
Noncontrolling interests | (125) | 91 | (41) | ||||||||
Corporate expense | (266) | (284) | (274) | ||||||||
Impairment of goodwill | (25) | (1,731) | |||||||||
Restructuring and other charges | (943) | (894) | (607) | ||||||||
Other | $ (548) | $ (329) | $ (612) |
Segment and Geographic Area 117
Segment and Geographic Area Information - Schedule of Segment Reporting Information to Consolidated Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Assets By Segment [Line Items] | ||||
Consolidated assets | $ 36,528 | $ 37,363 | ||
Cash and cash equivalents | 1,919 | 1,877 | $ 1,437 | $ 1,861 |
Corporate goodwill | 5,401 | 5,247 | $ 3,415 | |
Corporate fixed assets, net | 14,815 | 16,426 | ||
LIFO reserve | (559) | (767) | ||
Operating Segments [Member] | ||||
Schedule Of Assets By Segment [Line Items] | ||||
Consolidated assets | 29,666 | 31,341 | ||
Intersegment Eliminations [Member] | ||||
Schedule Of Assets By Segment [Line Items] | ||||
Consolidated assets | (318) | (490) | ||
Other [Member] | ||||
Schedule Of Assets By Segment [Line Items] | ||||
Cash and cash equivalents | 1,919 | 1,877 | ||
Deferred income taxes | 2,668 | 3,139 | ||
Corporate goodwill | 476 | 485 | ||
Corporate fixed assets, net | 733 | 819 | ||
LIFO reserve | (559) | (767) | ||
Fair value of derivative contracts | 1,078 | 16 | ||
Other | $ 865 | $ 943 |
Segment and Geographic Area 118
Segment and Geographic Area Information - Sales by Major Product Grouping (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Information [Line Items] | |||||||||||
Consolidated sales | $ 5,245 | $ 5,573 | $ 5,897 | $ 5,819 | $ 6,377 | $ 6,239 | $ 5,836 | $ 5,454 | $ 22,534 | $ 23,906 | $ 23,032 |
Alumina [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Consolidated sales | 3,333 | 3,401 | 3,151 | ||||||||
Primary Aluminum [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Consolidated sales | 5,085 | 6,011 | 6,194 | ||||||||
Flat-Rolled Aluminum [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Consolidated sales | 6,238 | 7,351 | 7,106 | ||||||||
Investment Castings [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Consolidated sales | 1,812 | 1,784 | 1,807 | ||||||||
Alcoa Fastening Systems and Rings [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Consolidated sales | 2,168 | 1,647 | 1,505 | ||||||||
Architectural Aluminum Systems [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Consolidated sales | 951 | 1,002 | 977 | ||||||||
Aluminum Wheels [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Consolidated sales | 790 | 786 | 702 | ||||||||
Other Extruded and Forged Products [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Consolidated sales | 1,332 | 1,019 | 1,015 | ||||||||
Other [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Consolidated sales | $ 825 | $ 905 | $ 575 |
Segment and Geographic Area 119
Segment and Geographic Area Information - Schedule of Geographic Information for Sales (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 5,245 | $ 5,573 | $ 5,897 | $ 5,819 | $ 6,377 | $ 6,239 | $ 5,836 | $ 5,454 | $ 22,534 | $ 23,906 | $ 23,032 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 12,425 | 12,103 | 11,766 | ||||||||
Spain [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,853 | 3,359 | 2,282 | ||||||||
Australia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,196 | 3,028 | 3,240 | ||||||||
Brazil [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 854 | 1,398 | 1,221 | ||||||||
France [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 802 | 915 | 862 | ||||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 698 | 464 | 475 | ||||||||
Hungary [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 622 | 630 | 555 | ||||||||
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 565 | 415 | 259 | ||||||||
Russia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 455 | 642 | 683 | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 308 | 143 | 123 | ||||||||
Germany [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 264 | 229 | 230 | ||||||||
Italy [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 139 | 150 | 157 | ||||||||
Netherlands [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 34 | 36 | 524 | ||||||||
Norway [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 30 | 31 | 283 | ||||||||
Other Geographical Regions [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 289 | $ 363 | $ 372 |
Segment and Geographic Area 120
Segment and Geographic Area Information - Schedule of Geographic Information for Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 14,815 | $ 16,426 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 5,758 | 5,403 |
Australia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,159 | 2,538 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,046 | 3,137 |
Iceland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,397 | 1,460 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,238 | 1,216 |
Norway [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 463 | 588 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 352 | 389 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 312 | 333 |
Russia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 303 | 443 |
Spain [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 294 | 339 |
Hungary [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 190 | 210 |
Other Geographical Regions [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 303 | $ 370 |
Preferred and Common Stock - Ad
Preferred and Common Stock - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2015shares | Mar. 31, 2015shares | Nov. 30, 2014shares | Jun. 30, 2014shares | Dec. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2014$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / shares | |
Class of Stock [Line Items] | ||||||||||
Public offering of preferred stock | $ | $ 1,250,000 | |||||||||
Depository shares | shares | 25,000,000 | |||||||||
Interest in preferred stock | 0.1 | |||||||||
Proceeds from public offering | $ | $ 1,213,000 | |||||||||
Preferred stock dividend declared | $ 3.75 | |||||||||
Common Stock authorized | shares | 1,800,000,000 | 1,800,000,000 | ||||||||
Common stock, par value per share | $ 1 | $ 1 | ||||||||
Common stock issued, in shares | shares | 1,391,211,244 | 1,391,211,244 | 1,303,813,830 | |||||||
Common stock, dividends yield | $ 0.03 | $ 0.12 | $ 0.12 | $ 0.12 | ||||||
Common stock reserved for future issuance | shares | 77,000,000 | 77,000,000 | ||||||||
Stock options granted, vesting period | 3 years | 3 years | 3 years | |||||||
Stock options granted, contractual term | 10 years | |||||||||
Stock awards, vesting period | Three-year | |||||||||
Stock based compensation expense, before tax | $ | $ 92,000 | $ 87,000 | $ 71,000 | |||||||
Stock based compensation expense, after tax | $ | $ 61,000 | $ 58,000 | $ 48,000 | |||||||
Stock based compensation expense, stock awards percentage | 80.00% | 80.00% | 70.00% | |||||||
Unrecognized compensation costs on non-vested stock option grants (pretax) | $ | $ 71,000 | $ 71,000 | ||||||||
Unrecognized compensation costs on non-vested stock option awards (pretax) | $ | 0 | $ 0 | ||||||||
Unrecognized compensation costs on non-vested awards, weighted average period of recognition in years | 1 year 7 months 6 days | |||||||||
Expense related to the acceleration of expense related to retirement-eligible employees | $ | $ 17,000 | $ 15,000 | $ 14,000 | |||||||
Stock option granted, Fair value | $ | $ 4,470 | 2,840 | 2,240 | |||||||
Average risk-free interest rate, minimum | 0.07% | |||||||||
Average risk-free interest rate, maximum | 1.83% | |||||||||
Dividend yield | 0.80% | |||||||||
Volatility, minimum | 32.00% | |||||||||
Volatility, maximum | 41.00% | |||||||||
Annual pre- and post-vesting forfeitures | 7.00% | |||||||||
Exercise behavior | 50.00% | |||||||||
Life (years) | 5 years 10 months 24 days | |||||||||
Number of options, Outstanding weighted average remaining contractual life | 6 years 29 days | |||||||||
Total intrinsic value of options outstanding | $ | $ 8,000 | $ 8,000 | ||||||||
Stock options vested | shares | 23,300,000 | |||||||||
Stock option exercisable | shares | 23,300,000 | |||||||||
Weighted average remaining contractual life, vested and exercisable | 5 years 3 months | |||||||||
Weighted average exercise price, vested and exercisable | $ 11.82 | $ 11.82 | ||||||||
Total intrinsic value of options vested and exercisable | $ | $ 5,000 | $ 5,000 | ||||||||
Cash received from option exercises | $ | 25,000 | 150,000 | 13,000 | |||||||
Total tax benefit realized from these exercises | $ | 6,000 | 28,000 | 1,000 | |||||||
Total intrinsic value of options exercised | $ | $ 19,000 | $ 84,000 | $ 2,000 | |||||||
Preferred Class A [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | shares | 660,000 | 660,000 | ||||||||
Preferred stock par value | $ 100 | $ 100 | ||||||||
Cumulative dividend preference per share | $ 3.75 | |||||||||
Preferred stock, shares outstanding | shares | 546,024 | 546,024 | 546,024 | |||||||
Preferred stock dividend declared | $ 3.75 | $ 3.75 | ||||||||
Preferred Class B [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | shares | 10,000,000 | 10,000,000 | ||||||||
Preferred stock par value | $ 1 | $ 1 | ||||||||
Preferred stock, shares outstanding | $ | $ 2,500 | $ 2,500 | $ 2,500 | |||||||
Preferred stock dividend declared | $ 26.8750 | $ 7.53993 | ||||||||
RTI [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of common stock shares issued in a part of acquisition | shares | 87,000,000 | 87,397,414 | ||||||||
Firth Rixson [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of common stock shares issued in a part of acquisition | shares | 36,523,010 | |||||||||
Issuance of common stock | shares | 37,000,000 | 37,000,000 | ||||||||
5.25% Convertible Notes Due 2014 [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, par value per share | $ 89 | |||||||||
Common stock issued, in shares | shares | 89,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | ||||||||
Stock option exercisable | shares | 89,000,000 | 89,000,000 | ||||||||
Maximum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock conversion price | $ 30.9406 | 30.9406 | ||||||||
Minimum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock conversion price | 25.7838 | 25.7838 | ||||||||
Class B Mandatory Convertible Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Percentage ownership | 5.375% | |||||||||
Mandatory Convertible Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock par value | $ 1 | |||||||||
Preferred stock liquidation preference | $ 500 | |||||||||
Preferred share | shares | 2,500,000 | |||||||||
Preferred stock dividend declared | $ 26.8750 | |||||||||
Preferred stock conversion date | Oct. 1, 2017 | |||||||||
Mandatory Convertible Preferred Stock [Member] | Maximum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock conversion price | 30.9406 | $ 30.9406 | ||||||||
Mandatory Convertible Preferred Stock [Member] | Minimum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock conversion price | 25.2994 | 25.2994 | ||||||||
Mandatory Convertible Preferred Stock [Member] | Minimum [Member] | Anti - Dilution Adjustments [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock conversion price | $ 25.7838 | $ 25.7838 |
Preferred and Common Stock - Sc
Preferred and Common Stock - Schedule of Share Activity (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Treasury stock, beginning balance | 87,150,169 | 106,895,705 | 110,694,604 |
Treasury stock, ending balance | 81,051,103 | 87,150,169 | 106,895,705 |
Common Stock Outstanding, beginning balance | 1,216,663,661 | 1,071,011,162 | 1,067,211,953 |
Common Stock Outstanding, ending balance | 1,310,160,141 | 1,216,663,661 | 1,071,011,162 |
Outstanding Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion of convertible notes | 89,383,953 | 310 | |
Acquisition of RTI | 87,397,414 | ||
Private placement | 36,523,010 | ||
Issued for stock-based compensation plans | 6,099,066 | 19,745,536 | 3,798,899 |
Treasury Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issued for stock-based compensation plans | (6,099,066) | (19,745,536) | (3,798,899) |
Preferred and Common Stock -123
Preferred and Common Stock - Schedule of Activity for Stock Options and Stock Awards (Detail) shares in Millions | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Schedule Of Stock Option Activity [Line Items] | |
Number of options, Exercised | (23.3) |
Stock Options [Member] | |
Schedule Of Stock Option Activity [Line Items] | |
Number of options, Outstanding beginning of year | 32 |
Number of options, Granted | 3 |
Number of options, Assumed at acquisition | 2 |
Number of options, Exercised | (3) |
Converted | 0 |
Number of options, Expired or forfeited | (1) |
Number of options, Performance share adjustment | 0 |
Number of options, Outstanding end of year | 33 |
Weighted average exercise price, Outstanding beginning of year | $ / shares | $ 11.26 |
Weighted average exercise price, granted | $ / shares | 15.55 |
Weighted average exercise price, Assumed at Acquisition | $ / shares | 11.24 |
Weighted average exercise price, exercised | $ / shares | 8.95 |
Weighted average exercise price, Converted | $ / shares | 0 |
Weighted average exercise price, expired or forfeited | $ / shares | 13.39 |
Weighted average exercise price, Performance share adjustment | $ / shares | 0 |
Weighted average exercise price Outstanding, end of year | $ / shares | $ 11.91 |
Stock Awards [Member] | |
Schedule Of Stock Option Activity [Line Items] | |
Number of awards, Outstanding beginning of year | 19 |
Number of awards, Granted | 7 |
Number of awards, Assumed at acquisition | 1 |
Number of awards, Exercised | 0 |
Number of awards, Converted | (5) |
Number of awards, Expired or forfeited | (1) |
Number of awards, Performance share adjustment | (1) |
Number of awards, Outstanding end of year | 20 |
Weighted average FMV per award, Outstanding beginning of year | $ / shares | $ 9.98 |
Weighted average FMV per award, Granted | $ / shares | 14.85 |
Weighted average FMV per award, Assumed at acquisition | $ / shares | 9.96 |
Weighted average FMV per award, Exercised | $ / shares | 0 |
Weighted average FMV per award, Converted | $ / shares | 10.08 |
Weighted average FMV per award, Expired or forfeited | $ / shares | 11.64 |
Weighted average FMV per award, Performance share adjustment | $ / shares | 10.96 |
Weighted average FMV per award, Outstanding, end of year | $ / shares | $ 11.38 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Information Used to Compute Basic and Diluted EPS (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net (loss) income attributable to Alcoa | $ (701) | $ 44 | $ 140 | $ 195 | $ 159 | $ 149 | $ 138 | $ (178) | $ (322) | $ 268 | $ (2,285) |
Less: preferred stock dividends declared | 69 | 21 | 2 | ||||||||
Net (loss) income available to Alcoa common shareholders-basic | (391) | 247 | (2,287) | ||||||||
Add: dividends related to mandatory convertible preferred stock | 0 | 0 | 0 | ||||||||
Add: interest expense related to convertible notes | 0 | 0 | 0 | ||||||||
Net (loss) income available to Alcoa common shareholders-diluted | $ (391) | $ 247 | $ (2,287) | ||||||||
Average shares outstanding-basic | 1,259 | 1,162 | 1,070 | ||||||||
Stock options | 7 | ||||||||||
Stock and performance awards | 11 | ||||||||||
Mandatory convertible preferred stock | 0 | 0 | 0 | ||||||||
Convertible notes | 0 | 0 | 0 | ||||||||
Average shares outstanding-diluted | 1,259 | 1,180 | 1,070 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 15 | ||
Convertible Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 16 | 89 | |
Shares that would have been included in diluted earnings per share calculation | 15 | 89 | |
Mandatory Convertible Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 77 | 22 | |
Shares that would have been included in diluted earnings per share calculation | 77 | ||
Equity Unit Purchase Agreements [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 26 | 3 | 12 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 33 | 12 | |
Shares that would have been included in diluted earnings per share calculation | 3 | 2 | |
Weighted average exercise price of options | $ 12.75 | $ 16.24 | $ 15.81 |
Stock Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 20 | 16 | |
Shares that would have been included in diluted earnings per share calculation | 12 | 9 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (607) | $ (125) | $ (1,269) |
Foreign | 855 | 622 | (547) |
Income (loss) before income taxes | $ 248 | $ 497 | $ (1,816) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes on Income from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 3 | $ (3) | $ 14 |
Foreign | 409 | 357 | 235 |
State and local | (1) | 1 | 1 |
Current provision for income taxes, total | 411 | 355 | 250 |
Deferred: | |||
Federal | (108) | 7 | 84 |
Foreign | 142 | (41) | 95 |
State and local | (1) | (1) | |
Deferred provision for income taxes, total | 34 | (35) | 178 |
Provision for income taxes (T) | $ 445 | $ 320 | $ 428 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Contingency [Line Items] | |||||
Tax benefit (charge) realized from exercise of employee stock options | $ 3 | $ 9 | $ 1 | ||
Unamortized tax-deductible goodwill resulting from intercompany stock sales and reorganizations | $ 27 | ||||
Unamortized tax-deduction rate on goodwill | 28.00% | ||||
Percentage of temporary tax differences that reverse within the carryforward period | 42.00% | ||||
Percentage of deferred tax asset exclusive of reversing temporary differences | 58.00% | ||||
Discrete income tax charge for valuation allowances | $ 190 | ||||
Valuation allowance | 2,037 | $ 2,037 | $ 1,668 | $ 1,804 | $ 1,400 |
Foreign tax credits carry forward period | 10 years | ||||
Percentage of tax rate decreased | (0.80%) | 17.90% | 0.60% | ||
Noncontrolling interest | 2,085 | $ 2,085 | $ 2,488 | ||
Income tax benefit for operational losses related to certain foreign jurisdictions that are excluded from the estimated annual effective tax rate calculation | $ 4,000 | ||||
Percentage of the effect of unrecognized tax benefit, if recorded | 12.00% | 4.00% | (1.00%) | ||
Interest and penalties recognized | $ 8 | $ 1 | $ 2 | ||
Income related to accrued interest and penalties | 2 | 5 | 12 | ||
Amount accrued for payment of interest and penalties | 9 | $ 9 | $ 9 | ||
Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Percentage of tax rate decreased | 15.25% | ||||
Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Percentage of tax rate decreased | 34.00% | ||||
Tax Year Two Thousand And Sixteen [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Unamortized tax-deduction rate on goodwill | 25.00% | ||||
Foreign Tax Authority [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Discrete income tax charge for valuation allowances | $ 134 | ||||
Valuation allowance | 254 | $ 254 | $ 135 | ||
Foreign tax credits carry forward period | 10 years | ||||
Foreign tax credits expiry period | 2,015 | ||||
Foreign tax credits | 15 | $ 15 | |||
Decrease to the net deferred tax asset and noncash charge to earnings | 52 | ||||
Noncontrolling interest | 31 | $ 31 | |||
Foreign Tax Authority [Member] | Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Foreign tax credits expiry period | 2,016 | 2,016 | |||
Foreign Tax Authority [Member] | Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Foreign tax credits expiry period | 2,025 | 2,023 | |||
Iceland And Suriname [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Discrete income tax charge for valuation allowances | $ 141 | ||||
Suriname [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Valuation allowance | 85 | $ 85 | |||
Suriname [Member] | Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Foreign tax credits expiry period | 2,016 | ||||
Suriname [Member] | Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Foreign tax credits expiry period | 2,022 | ||||
Iceland [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Valuation allowance | 56 | $ 56 | |||
Iceland [Member] | Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Foreign tax credits expiry period | 2,017 | ||||
Iceland [Member] | Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Foreign tax credits expiry period | 2,023 | ||||
Spanish Consolidated Tax Group [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Discrete income tax charge for valuation allowances | $ 372 | ||||
Valuation allowance | $ 149 | $ 149 | $ 237 | ||
Spanish Consolidated Tax Group [Member] | Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax assets expiry period | 2,016 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
Taxes on foreign operations | 0.40% | (3.20%) | 0.70% |
Permanent differences on restructuring and other charges and asset disposals | 2.70% | (3.50%) | (0.80%) |
Non-deductible acquisition costs | 5.20% | 1.70% | |
Equity income/loss | 4.90% | 3.20% | (0.70%) |
Noncontrolling interests | 11.40% | 6.80% | (3.10%) |
Statutory tax rate and law changes | (0.80%) | 17.90% | 0.60% |
Tax holidays | (11.30%) | 6.10% | |
Tax credits | (3.60%) | (1.30%) | 0.20% |
Changes in valuation allowances | 135.30% | 3.50% | (23.20%) |
Impairment of goodwill | 3.60% | (33.30%) | |
Company-owned life insurance/split-dollar net premiums | (2.20%) | (2.20%) | 1.10% |
Other | (1.20%) | 0.40% | (0.10%) |
Effective tax rate | 179.40% | 64.40% | (23.60%) |
Income Taxes - Reconciliatio130
Income Taxes - Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate (Parenthetical) (Detail) | 12 Months Ended |
Nov. 30, 2014 | |
Reconciliation Of Effective Income Tax Rate [Line Items] | |
Corporate tax rate | 30.00% |
Tax Year Two Thousand And Fifteen [Member] | |
Reconciliation Of Effective Income Tax Rate [Line Items] | |
Corporate tax rate | 28.00% |
Tax Year Two Thousand And Sixteen [Member] | |
Reconciliation Of Effective Income Tax Rate [Line Items] | |
Corporate tax rate | 25.00% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ||||
Deferred tax assets, Depreciation | $ 194 | $ 147 | ||
Deferred tax assets, Employee benefits | 2,517 | 2,413 | ||
Deferred tax assets, Loss provisions | 486 | 441 | ||
Deferred tax assets, Deferred income/expense | 37 | 30 | ||
Deferred tax assets, Tax loss carryforwards | 1,917 | 2,075 | ||
Deferred tax assets, Tax credit carryforwards | 693 | 625 | ||
Deferred tax assets, Derivatives and hedging activities | 5 | |||
Deferred tax assets, Other | 680 | 521 | ||
Deferred tax assets, Gross | 6,524 | 6,257 | ||
Deferred tax assets, Valuation allowance | (2,037) | (1,668) | $ (1,804) | $ (1,400) |
Deferred tax assets, net | 4,487 | 4,589 | ||
Deferred tax liabilities, Depreciation | 1,353 | 1,187 | ||
Deferred tax liabilities, Employee benefits | 34 | 37 | ||
Deferred tax liabilities, Loss provisions | 9 | 10 | ||
Deferred tax liabilities, Deferred income/expense | 294 | 230 | ||
Deferred tax liabilities, Tax loss carryforwards | 0 | 0 | ||
Deferred tax liabilities, Tax credit carryforwards | 0 | 0 | ||
Deferred tax liabilities, Derivatives and hedging activities | 276 | 39 | ||
Deferred tax liabilities, Other | 339 | 297 | ||
Deferred tax liabilities, Gross | 2,305 | 1,800 | ||
Deferred tax liabilities, Valuation allowance | 0 | 0 | ||
Deferred tax liabilities, Net | $ 2,305 | $ 1,800 |
Income Taxes - Schedule of Expi
Income Taxes - Schedule of Expiration Periods of Deferred Tax Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Tax Credit Carryforward [Line Items] | ||
Tax loss carryforwards | $ 1,917 | |
Tax credit carryforwards | 693 | |
Other | 3,914 | |
Valuation allowance | (2,037) | |
Deferred tax assets, net | 4,487 | $ 4,589 |
Expires Within 10 Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax loss carryforwards | 361 | |
Tax credit carryforwards | 492 | |
Valuation allowance | (596) | |
Deferred tax assets, net | 257 | |
Expires Within 11-20 Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax loss carryforwards | 694 | |
Tax credit carryforwards | 103 | |
Valuation allowance | (704) | |
Deferred tax assets, net | 93 | |
No Expiration [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax loss carryforwards | 862 | |
Tax credit carryforwards | 98 | |
Other | 473 | |
Valuation allowance | (423) | |
Deferred tax assets, net | 1,010 | |
Other [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Other | 3,441 | |
Valuation allowance | (314) | |
Deferred tax assets, net | $ 3,127 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Valuation Allowance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 1,668 | $ 1,804 | $ 1,400 |
Increase to allowance | 472 | 117 | 471 |
Release of allowance | (42) | (77) | (41) |
Acquisitions and divestitures (F) | 29 | (37) | |
U.S. state tax apportionment and tax rate changes | (45) | (80) | (32) |
Foreign currency translation | (45) | (59) | 6 |
Balance at end of year | $ 2,037 | $ 1,668 | $ 1,804 |
Income Taxes - Reconciliatio134
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 35 | $ 63 | $ 66 |
Additions for tax positions of the current year | 2 | 2 | 2 |
Additions for tax positions of prior years | 15 | 5 | 11 |
Reductions for tax positions of prior years | (2) | (4) | (2) |
Settlements with tax authorities | (2) | (29) | (8) |
Expiration of the statute of limitations | (1) | (2) | |
Foreign currency translation | (4) | (2) | (4) |
Balance at end of year | $ 43 | $ 35 | $ 63 |
Receivables - Additional Inform
Receivables - Additional Information (Detail) | Mar. 30, 2012USD ($) | Dec. 31, 2015USD ($)Agreement | Dec. 31, 2014USD ($) |
Schedule Of Financial Receivables [Line Items] | |||
Number of arrangement with different financial institution to sell customer receivables | Agreement | 3 | ||
Sale of customer receivables | $ 304,000,000 | ||
Cash received for receivables | 50,000,000 | ||
Deferred purchase price receivable | $ 254,000,000 | $ 249,000,000 | $ 356,000,000 |
Additional funding received | 40,000,000 | ||
Amount of cash draws under arrangement | 0 | 710,000,000 | |
Amount of cash repayments under arrangement | 0 | 670,000,000 | |
Accounts receivables | 24,598,000,000 | ||
Cash collections of other receivables | 24,099,000,000 | ||
Gross cash outflows from deferred purchased receivables | 7,381,000,000 | 7,272,000,000 | |
Gross cash inflows from deferred purchased receivables | 6,893,000,000 | $ 7,001,000,000 | |
Minimum [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Funding of customer receivables sold | 200,000,000 | ||
Maximum [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Funding of customer receivables sold | 500,000,000 | ||
Predecessor [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Additional funding received | 200,000,000 | ||
Amount of cash draws under arrangement | 1,258,000,000 | ||
Amount of cash repayments under arrangement | $ 1,058,000,000 |
Receivables - Schedule of Allow
Receivables - Schedule of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Customer Receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at beginning of year | $ 14 | $ 20 | $ 39 |
Provision for doubtful accounts | 5 | 2 | 3 |
Write off of uncollectible accounts | (4) | (3) | (19) |
Recoveries of prior write-offs | (2) | (3) | |
Other | (2) | (3) | |
Balance at end of year | 13 | 14 | 20 |
Other Receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at beginning of year | 41 | 47 | 74 |
Provision for doubtful accounts | 8 | 8 | 29 |
Write off of uncollectible accounts | (2) | (4) | (39) |
Recoveries of prior write-offs | 1 | (7) | (10) |
Other | 1 | (3) | (7) |
Balance at end of year | $ 49 | $ 41 | $ 47 |
Interest Cost Components - Sche
Interest Cost Components - Schedule of Interest Cost Components (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | |||
Amount charged to expense | $ 498 | $ 473 | $ 453 |
Amount capitalized | 57 | 56 | 99 |
Interest costs, total | $ 555 | $ 529 | $ 552 |
Pension and Other Postretire138
Pension and Other Postretirement Benefits - Additional Information (Detail) | Jun. 06, 2014EmployeesLocation | May. 31, 2014USD ($) | Dec. 31, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Aug. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discount rate used to determine pension benefit obligation | 4.29% | 4.00% | |||||
Average duration refined yield curve model parallels the plans, years | 10 years | ||||||
Defined benefit plan, change in interest cost, before tax | $ 100,000,000 | ||||||
Defined benefit plan, change in interest cost,after tax | $ 65,000,000 | ||||||
Average period of historical returns used to calculate expected future returns, in years | 5 years | ||||||
Expected long term rate of return on plan assets | 7.75% | 8.00% | 8.50% | ||||
Decrease in expected long-term rate of return | 0.25% | ||||||
Health care cost trend rate assumed for next year | 5.50% | 5.50% | 5.50% | ||||
Health care cost trend rate | 4.50% | 4.50% | 4.50% | ||||
Number of years over actual annual health care cost trend experience | 3 years | ||||||
Cash contribution to pension plans | $ 470,000,000 | $ 501,000,000 | $ 462,000,000 | ||||
Minimum required cash contribution to pension plan in 2015 | 300,000,000 | ||||||
Expenses related to saving and investment plans | $ 142,000,000 | $ 151,000,000 | $ 149,000,000 | ||||
Maximum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Health care cost trend rate | 9.60% | ||||||
Minimum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Health care cost trend rate | 4.00% | ||||||
Scenario, Forecast [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected long term rate of return on plan assets | 7.75% | ||||||
Pension Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage increase in rate of compensation | 3.50% | ||||||
Average period over which rate of compensation increases, years | 5 years | ||||||
United Steelworkers Labor Agreement [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Term of labor agreement, in years | 5 years | ||||||
Number of employees covered by labor agreement | Employees | 6,100 | ||||||
Number of locations affected by labor agreement | Location | 10 | ||||||
Labor agreement expired, date | May 15, 2014 | ||||||
Pretax costs related to preparation for and ratification of new agreement | $ 18,000,000 | ||||||
After-tax costs related to preparation for and ratification of new agreement | $ 12,000,000 | ||||||
Discount rate used to determine pension benefit obligation | 4.25% | 4.80% | |||||
Increase in pension liability, plan amendment | $ 100,000,000 | ||||||
Accumulated (increase) decrease in net actuarial loss after-tax, plan amendment | $ (65,000,000) | ||||||
Annual decrease in net periodic benefit cost, plan amendment | 13,000,000 | ||||||
Postretirement Benefit Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discount rate used to determine pension benefit obligation | 4.80% | 4.15% | |||||
Accumulated (increase) decrease in net actuarial loss after-tax, plan amendment | 59,000,000 | ||||||
Annual decrease in net periodic benefit cost, plan amendment | 7,000,000 | ||||||
Decrease in other post benefit liability | 90,000,000 | ||||||
Foreign Pension Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Average period of historical returns used to calculate expected future returns, in years | 4 years | ||||||
Minimum required cash contribution to pension plan in 2015 | $ 218,000,000 | ||||||
10-Year Moving Average [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Period of moving averages used for historical data points used to determine the expected long-term rate of return on plan assets, in years | 10 years | ||||||
20-Year Moving Average [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Period of moving averages used for historical data points used to determine the expected long-term rate of return on plan assets, in years | 20 years |
Pension and Other Postretire139
Pension and Other Postretirement Benefits - Schedule of Obligations and Funded Status (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at beginning of year | $ 11,833 | ||
Fair value of plan assets at end of year | 10,926 | $ 11,833 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 15,019 | ||
Service cost | 175 | 166 | $ 194 |
Interest cost | 577 | 630 | 602 |
Settlements | 16 | 26 | 9 |
Curtailments | (9) | (6) | |
Benefit obligation at end of year | 14,247 | 15,019 | |
Funded status | (3,319) | (3,302) | |
Less: Amounts attributed to joint venture partners | (30) | (33) | |
Net funded status | (3,289) | (3,269) | |
Noncurrent assets | 44 | 53 | |
Current liabilities | (35) | (31) | |
Noncurrent liabilities | (3,298) | (3,291) | |
Net amount recognized | (3,289) | (3,269) | |
Net actuarial loss | 5,351 | 5,379 | |
Prior service cost (benefit) | 70 | 102 | |
Total, before tax effect | 5,421 | 5,481 | |
Less: Amounts attributed to joint venture partners | 38 | 43 | |
Net amount recognized, before tax effect | 5,383 | 5,438 | |
Net actuarial loss | 440 | 572 | |
Amortization of accumulated net actuarial loss | (468) | (391) | |
Prior service (benefit) cost | (7) | 26 | |
Amortization of prior service (cost) benefit | (25) | (18) | |
Total, before tax effect | (60) | 189 | |
Less: Amounts attributed to joint venture partners | (5) | 5 | |
Net amount recognized, before tax effect | (55) | 184 | |
Pension Benefits [Member] | Change in Benefit Obligation [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 15,019 | 13,730 | |
Service cost | 187 | 182 | |
Interest cost | 583 | 640 | |
Amendments | 18 | 33 | |
Actuarial (gains) losses | (222) | 1,552 | |
Acquisitions | 188 | 455 | |
Divestitures | (142) | ||
Settlements | (72) | (134) | |
Curtailments | (12) | ||
Benefits paid | (1,033) | (1,051) | |
Foreign currency translation impact | (409) | (246) | |
Benefit obligation at end of year | 14,247 | 15,019 | 13,730 |
Pension Benefits [Member] | Change in Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at beginning of year | 11,717 | 10,580 | |
Actual return on plan assets | 24 | 1,764 | |
Employer contributions | 479 | 507 | |
Participants' contributions | 21 | 25 | |
Settlements | (72) | (134) | |
Benefits paid | (1,015) | (1,038) | |
Administrative expenses | (55) | (54) | |
Acquisitions | 164 | 431 | |
Divestitures | (164) | ||
Foreign currency translation impact | (335) | (200) | |
Fair value of plan assets at end of year | 10,928 | 11,717 | 10,580 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 14 | 15 | 17 |
Interest cost | 92 | 114 | 114 |
Curtailments | 4 | ||
Funded status | (2,319) | (2,368) | |
Net funded status | (2,319) | (2,368) | |
Current liabilities | (213) | (213) | |
Noncurrent liabilities | (2,106) | (2,155) | |
Net amount recognized | (2,319) | (2,368) | |
Net actuarial loss | 398 | 392 | |
Prior service cost (benefit) | (106) | (144) | |
Total, before tax effect | 292 | 248 | |
Net amount recognized, before tax effect | 292 | 248 | |
Net actuarial loss | 23 | 15 | |
Amortization of accumulated net actuarial loss | (17) | (13) | |
Prior service (benefit) cost | 1 | (112) | |
Amortization of prior service (cost) benefit | 37 | 25 | |
Total, before tax effect | 44 | (85) | |
Net amount recognized, before tax effect | 44 | (85) | |
Other Postretirement Benefits [Member] | Change in Benefit Obligation [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 2,368 | 2,592 | |
Service cost | 14 | 15 | |
Interest cost | 92 | 114 | |
Amendments | (111) | ||
Actuarial (gains) losses | 26 | 16 | |
Acquisitions | 48 | ||
Divestitures | (10) | ||
Curtailments | (6) | ||
Benefits paid | (235) | (264) | |
Medicare Part D subsidy receipts | 15 | 19 | |
Foreign currency translation impact | (3) | (3) | |
Benefit obligation at end of year | $ 2,319 | $ 2,368 | $ 2,592 |
Pension and Other Postretire140
Pension and Other Postretirement Benefits - Schedule of Obligations and Funded Status (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 10,926 | $ 11,833 |
Domestic Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | 10,983 | 11,404 |
Fair value of plan assets | 8,077 | 8,576 |
Funded status | $ (2,906) | $ (2,828) |
Pension and Other Postretire141
Pension and Other Postretirement Benefits - Schedule of Pension Plan Benefit Obligations (Detail) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans, Projected benefit obligation | $ 14,247 | $ 15,019 |
Accumulated benefit obligation | 13,832 | 14,553 |
Plan assets, Projected benefit obligation | 14,146 | 14,151 |
Fair value of plan assets | 10,786 | 10,777 |
Plan assets, Accumulated benefit obligation | 12,510 | 13,112 |
Fair value of plan assets | $ 9,512 | $ 10,144 |
Pension and Other Postretire142
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | $ 423 | $ 335 | $ 391 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 175 | 166 | 194 |
Interest cost | 577 | 630 | 602 |
Expected return on plan assets | (753) | (782) | (788) |
Recognized net actuarial loss | 468 | 391 | 489 |
Amortization of prior service cost (benefit) | 16 | 18 | 19 |
Settlements | 16 | 26 | 9 |
Curtailments | 9 | 6 | |
Special termination benefits | 16 | 77 | |
Net periodic benefit cost | 524 | 449 | 608 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 14 | 15 | 17 |
Interest cost | 92 | 114 | 114 |
Recognized net actuarial loss | 17 | 13 | 35 |
Amortization of prior service cost (benefit) | (37) | (25) | (18) |
Curtailments | (4) | ||
Net periodic benefit cost | $ 82 | $ 117 | $ 148 |
Pension and Other Postretire143
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Net periodic benefit cost | $ 423 | $ 335 | $ 391 |
Reduction in net periodic benefit cost for post retirement benefit due to drug benefit | $ 34 | $ 38 | $ 55 |
Pension and Other Postretire144
Pension and Other Postretirement Benefits - Schedule of Amounts Expected to be Recognized in Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | $ 468 | $ 391 | $ 489 | |
Prior service cost (benefit) recognition | 16 | 18 | 19 | |
Pension Benefits [Member] | Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | $ 413 | |||
Prior service cost (benefit) recognition | 15 | |||
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | 17 | 13 | 35 | |
Prior service cost (benefit) recognition | $ (37) | $ (25) | $ (18) | |
Other Postretirement Benefits [Member] | Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | 21 | |||
Prior service cost (benefit) recognition | $ (26) |
Pension and Other Postretire145
Pension and Other Postretirement Benefits - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate | 4.29% | 4.00% | |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Discount rate | 4.00% | 4.80% | 4.15% |
Expected long-term rate of return on plan assets | 7.75% | 8.00% | 8.50% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Pension and Other Postretire146
Pension and Other Postretirement Benefits - Schedule of Assumed Health Care Cost Trend Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Health care cost trend rate assumed for next year | 5.50% | 5.50% | 5.50% |
Rate to which the cost trend rate gradually declines | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the rate at which it is assumed to remain | 2,019 | 2,018 | 2,017 |
Pension and Other Postretire147
Pension and Other Postretirement Benefits - Schedule of One-Percentage Point Change in Assumed Rates of Health Care Cost Trend Rates (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Effect on other postretirement benefit obligations, 1% increase | $ 126 |
Effect on total of service and interest cost components, 1% increase | 5 |
Effect on other postretirement benefit obligations, 1% decrease | (113) |
Effect on total of service and interest cost components, 1% decrease | $ (5) |
Pension and Other Postretire148
Pension and Other Postretirement Benefits - Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 55.00% | |
Equity Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 20.00% | |
Fixed Income Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 55.00% | |
Fixed Income Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 25.00% | |
Other Investments [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 35.00% | |
Other Investments [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 15.00% | |
Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 100.00% | 100.00% |
Plan Assets [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 30.00% | 33.00% |
Plan Assets [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 43.00% | 45.00% |
Plan Assets [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 27.00% | 22.00% |
Pension and Other Postretire149
Pension and Other Postretirement Benefits - Schedule of Fair Value of Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | $ 10,926 | $ 11,833 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 3,323 | 3,969 |
Equity Securities [Member] | Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,925 | 2,463 |
Equity Securities [Member] | Hedge Funds, Equity Long (Short) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 932 | 963 |
Equity Securities [Member] | Private Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 466 | 543 |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 4,703 | 5,311 |
Fixed Income Securities [Member] | Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 3,751 | 4,898 |
Fixed Income Securities [Member] | Other Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 952 | 413 |
Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,900 | 2,553 |
Other Investments [Member] | Other Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 493 | 516 |
Other Investments [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 736 | 629 |
Other Investments [Member] | Discretionary and Systematic Macro Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,671 | 1,408 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 3,606 | 4,446 |
Level 1 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 826 | 1,156 |
Level 1 [Member] | Equity Securities [Member] | Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 826 | 1,156 |
Level 1 [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,496 | 2,998 |
Level 1 [Member] | Fixed Income Securities [Member] | Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,496 | 2,998 |
Level 1 [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 284 | 292 |
Level 1 [Member] | Other Investments [Member] | Other Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 126 | 140 |
Level 1 [Member] | Other Investments [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 158 | 152 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 3,152 | 3,462 |
Level 2 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 929 | 1,131 |
Level 2 [Member] | Equity Securities [Member] | Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 929 | 1,131 |
Level 2 [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,207 | 2,313 |
Level 2 [Member] | Fixed Income Securities [Member] | Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,255 | 1,900 |
Level 2 [Member] | Fixed Income Securities [Member] | Other Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 952 | 413 |
Level 2 [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 16 | 18 |
Level 2 [Member] | Other Investments [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 16 | 18 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 4,168 | 3,925 |
Level 3 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,568 | 1,682 |
Level 3 [Member] | Equity Securities [Member] | Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 170 | 176 |
Level 3 [Member] | Equity Securities [Member] | Hedge Funds, Equity Long (Short) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 932 | 963 |
Level 3 [Member] | Equity Securities [Member] | Private Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 466 | 543 |
Level 3 [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,600 | 2,243 |
Level 3 [Member] | Other Investments [Member] | Other Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 367 | 376 |
Level 3 [Member] | Other Investments [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 562 | 459 |
Level 3 [Member] | Other Investments [Member] | Discretionary and Systematic Macro Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | $ 1,671 | $ 1,408 |
Pension and Other Postretire150
Pension and Other Postretirement Benefits - Schedule of Fair Value of Pension Plan Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Sale Of Subsidiary [Abstract] | ||
Net receivables which represents assets related to divested businesses to be transferred to the buyers | $ 2 | |
Net payable which represents assets related to divested businesses to be transferred to the buyers | $ 116 |
Pension and Other Postretire151
Pension and Other Postretirement Benefits - Schedule of Reconciliation of Activity for Investments (Detail) - Pension and Other Postretirement Benefit Plans' Assets [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | $ 3,925 | $ 3,421 |
Realized gains | 118 | 180 |
Unrealized gains | 94 | 146 |
Purchases | 640 | 868 |
Sales | (481) | (768) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Acquisitions | 12 | 117 |
Foreign currency translation impact | (140) | (39) |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance at end of year | $ 4,168 | $ 3,925 |
Pension and Other Postretire152
Pension and Other Postretirement Benefits - Schedule of Reconciliation of Activity for Investments (Parenthetical) (Detail) - Pension and Other Postretirement Benefit Plans' Assets [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Transfer into level 3 | $ 0 | $ 0 |
Transfer out of level 3 | $ 0 | $ 0 |
Pension and Other Postretire153
Pension and Other Postretirement Benefits - Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 910 |
2,017 | 900 |
2,018 | 910 |
2,019 | 910 |
2,020 | 920 |
2021 through 2025 | 4,650 |
Total benefit payments | 9,200 |
Gross Other Post-Retirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 230 |
2,017 | 225 |
2,018 | 225 |
2,019 | 220 |
2,020 | 220 |
2021 through 2025 | 975 |
Total benefit payments | 2,095 |
Medicare Part D Subsidy Receipts [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 15 |
2,017 | 15 |
2,018 | 15 |
2,019 | 15 |
2,020 | 20 |
2021 through 2025 | 80 |
Total benefit payments | 160 |
Net Other Post-Retirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 215 |
2,017 | 210 |
2,018 | 210 |
2,019 | 205 |
2,020 | 200 |
2021 through 2025 | 895 |
Total benefit payments | $ 1,935 |
Derivatives and Other Financ154
Derivatives and Other Financial Instruments - Additional Information (Detail) t in Thousands, CAD in Millions, BRL in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2014PlantContract | Dec. 31, 2015USD ($)MWhDerivativeAgencyt | Dec. 31, 2014USD ($)t | Dec. 31, 2013USD ($) | Dec. 31, 2014BRL | Dec. 31, 2014CAD | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other derivative contracts estimated term of quoted market prices, in years | 10 years | |||||
Number of contracts | Contract | 2 | |||||
Number of smelters | Plant | 2 | |||||
Number of credit rating agencies | Agency | 3 | |||||
Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 9 | |||||
Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of derivatives recorded as assets | $ 8,000,000 | $ 2,000,000 | ||||
Fair value of derivatives recorded as liabilities | 58,000,000 | 31,000,000 | ||||
Net gain (loss) of derivative instruments | 19,000,000 | (15,000,000) | $ 4,000,000 | |||
Net gain of cash flow hedges | 9,000,000 | |||||
Derivatives Not Designated as Hedging Instruments [Member] | Other (Income) Expenses, Net [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net gain (loss) of derivative instruments | (25,000,000) | (13,000,000) | 36,000,000 | |||
Foreign Exchange Contracts One [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Forward contract to purchase to mitigate the foreign currency risk related to a Canadian/Brazilian-denominated loan due in 2014 | $ 53,000,000 | CAD 58 | ||||
Maturity date of forward contract | Aug. 5, 2014 | |||||
Foreign Exchange Contracts One [Member] | Forward Contracts [Member] | Canadian Denominated Loan [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Gain (Loss) recognized on forward contract | $ 1,000,000 | |||||
Foreign Exchange Contracts Two [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Gain (Loss) recognized on forward contract | (4,000,000) | |||||
Foreign Exchange Contracts Two [Member] | Forward Contracts [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Forward contract to purchase to mitigate the foreign currency risk related to a Canadian/Brazilian-denominated loan due in 2014 | $ 231,000,000 | BRL 543 | ||||
Maturity date of forward contract | Mar. 31, 2014 | |||||
Embedded Aluminum Derivative [Member] | Cash Flow Hedging [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Recognized an unrealized gain (loss) | 1,155,000,000 | $ 78,000,000 | 190,000,000 | |||
Realized gain (loss) on derivatives | $ (21,000,000) | $ (28,000,000) | (29,000,000) | |||
Embedded Aluminum Derivative [Member] | Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 7 | |||||
Embedded Aluminum Derivative [Member] | Level 3 [Member] | Cash Flow Hedging [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 5 | |||||
Embedded Aluminum Derivative [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Aluminum forecast sales | t | 3,307 | 3,610 | ||||
Embedded Aluminum Derivative [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Amount of gain (loss) expected to be recognized into earnings over the next 12 months | $ 45,000,000 | |||||
Derivative instruments ineffectiveness | 0 | $ 0 | 0 | |||
Embedded Aluminum Derivative [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net gain (loss) of derivative instruments | $ (8,000,000) | (15,000,000) | 28,000,000 | |||
Embedded Aluminum Derivative [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 2 | |||||
Energy Contracts [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Recognized an unrealized gain (loss) | $ (2,000,000) | (4,000,000) | 3,000,000 | |||
Energy Contracts [Member] | Level 3 [Member] | Cash Flow Hedging [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 1 | |||||
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative instruments ineffectiveness | $ (3,000,000) | 0 | 0 | |||
Forecasted energy purchases in megawatt hours | MWh | 59,409,328 | |||||
Embedded Credit Derivative [Member] | Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 1 | |||||
Embedded Credit Derivative [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net gain (loss) of derivative instruments | $ (17,000,000) | $ 2,000,000 | $ 8,000,000 | |||
Embedded Credit Derivative [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 0 | |||||
Power Contract One [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Power contracts maturity date | Jun. 30, 2014 | |||||
Power Contract Two [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Power contracts maturity date | Jun. 30, 2014 |
Derivatives and Other Financ155
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)Index$ / Metric_Ton$ / MWh$ / Barrels$ / AUD$ / lb | Dec. 31, 2014USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 1,137 | $ 268 |
Embedded Aluminum Derivative [Member] | Price of Aluminum beyond Forward Curve [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | 1,060 | |
Derivative Liabilities, Fair value | $ | $ 169 | |
Embedded Aluminum Derivative [Member] | Price of Aluminum beyond Forward Curve [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,060 | |
Maturity year of future aluminum price | 2,026 | |
Embedded Aluminum Derivative [Member] | Price of Aluminum beyond Forward Curve [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,128 | |
Maturity year of future aluminum price | 2,027 | |
Embedded Aluminum Derivative [Member] | Price of Aluminum beyond Forward Curve [Member] | Average Price [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,060 | |
Maturity year of future aluminum price | 2,026 | |
Embedded Aluminum Derivative [Member] | Price of Aluminum beyond Forward Curve [Member] | Midwest Premium | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.0940 | |
Foreign currency exchange rate expected year | 2,021 | |
Embedded Aluminum Derivative [Member] | Price of Aluminum beyond Forward Curve [Member] | Midwest Premium | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.0940 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 69 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Average Price [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Maturity year of future aluminum price | 2,016 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Average Price [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 1,525 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Average Price [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 1,550 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Estimated Foreign Currency Exchange Rate [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency exchange rate | $ / AUD | 0.73 | |
Foreign currency exchange rate expected year | 2,016 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Consumer Price Index [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Consumer price index base year | 1,982 | |
Consumer price index base | Index | 100 | |
Expected consumer price index, Year | 2,016 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Consumer Price Index [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected consumer price index | Index | 233 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] | Consumer Price Index [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected consumer price index | Index | 236 | |
Embedded Aluminum Derivative [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 6 | |
Embedded Aluminum Derivative [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Average Price [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 1,512 | |
Maturity year of future aluminum price | 2,016 | |
Embedded Aluminum Derivative [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Average Price [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 1,686 | |
Maturity year of future aluminum price | 2,019 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum and Oil Prices [Member] | Average Price [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 1,525 | |
Maturity year of future aluminum price | 2,016 | |
Expected future oil prices | $ / Barrels | 38 | |
Maturity year of future oil price | 2,016 | |
Embedded Aluminum Derivative [Member] | Interrelationship of Future Aluminum and Oil Prices [Member] | Average Price [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 1,652 | |
Maturity year of future aluminum price | 2,018 | |
Expected future oil prices | $ / Barrels | 53 | |
Maturity year of future oil price | 2,018 | |
Embedded Aluminum Derivative [Member] | Two Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | Average Price [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,337 | |
Maturity year of future aluminum price | 2,029 | |
Embedded Aluminum Derivative [Member] | Two Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | Midwest Premium | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency exchange rate expected year | 2,029 | |
Embedded Aluminum Derivative [Member] | One Contract [Member] | Price of Aluminum beyond Forward Curve [Member] | Average Price [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,534 | |
Maturity year of future aluminum price | 2,036 | |
Embedded Aluminum Derivative [Member] | One Contract [Member] | Price of Aluminum beyond Forward Curve [Member] | Midwest Premium | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency exchange rate expected year | 2,036 | |
Embedded Credit Derivative [Member] | Credit Spread between Alcoa and Counterparty [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 35 | |
Embedded Credit Derivative [Member] | Credit Spread between Alcoa and Counterparty [Member] | Credit Spread [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Percentage of credit spread | 3.85% | |
Embedded Credit Derivative [Member] | Credit Spread between Alcoa and Counterparty [Member] | Credit Spread [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Percentage of credit spread | 3.41% | |
Embedded Credit Derivative [Member] | Credit Spread between Alcoa and Counterparty [Member] | Credit Spread [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Percentage of credit spread | 4.29% | |
Energy Contracts [Member] | Price of Electricity beyond Forward Curve [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 2 | |
Energy Contracts [Member] | Price of Electricity beyond Forward Curve [Member] | Average Price [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price of electricity beyond forward curve | $ / MWh | 45 | |
Maturity date of electricity beyond forward curve | 2,019 | |
Energy Contracts [Member] | Price of Electricity beyond Forward Curve [Member] | Average Price [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price of electricity beyond forward curve | $ / MWh | 121 | |
Maturity date of electricity beyond forward curve | 2,036 |
Derivatives and Other Financ156
Derivatives and Other Financial Instruments - Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | $ 1,137 | $ 268 |
Fair value liability derivatives | 208 | 394 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 1,068 | 99 |
Fair value liability derivatives | 173 | 376 |
Derivatives Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 72 | 24 |
Derivatives Designated as Hedging Instruments [Member] | Other Noncurrent Assets [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 994 | 73 |
Derivatives Designated as Hedging Instruments [Member] | Other Noncurrent Assets [Member] | Energy Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 2 | 2 |
Derivatives Designated as Hedging Instruments [Member] | Other Current Liabilities [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 9 | 24 |
Derivatives Designated as Hedging Instruments [Member] | Other Current Liabilities [Member] | Energy Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 4 | |
Derivatives Designated as Hedging Instruments [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 160 | 352 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 69 | 169 |
Fair value liability derivatives | 35 | 18 |
Derivatives Not Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 69 | 98 |
Derivatives Not Designated as Hedging Instruments [Member] | Other Noncurrent Assets [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 71 | |
Derivatives Not Designated as Hedging Instruments [Member] | Other Current Liabilities [Member] | Embedded Credit Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 6 | 2 |
Derivatives Not Designated as Hedging Instruments [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | Embedded Credit Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | $ 29 | $ 16 |
Derivatives and Other Financ157
Derivatives and Other Financial Instruments - Schedule of Net Fair Values of Level 3 Derivative Instruments and Effect of Hypothetical Change (Increase or Decrease of 10%) in Market Prices or Rates (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Embedded Aluminum Derivative [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair value asset/(liability) | $ 966 |
Index change of + / - 10% | 340 |
Embedded Credit Derivative [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair value asset/(liability) | (35) |
Index change of + / - 10% | 4 |
Energy Contracts [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair value asset/(liability) | (2) |
Index change of + / - 10% | $ 136 |
Derivatives and Other Financ158
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair value measurement, Assets, Purchases, sales, issuances, and settlements | $ 0 | $ 0 | |
Embedded Aluminum Derivative [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance at beginning of year | 266,000,000 | $ 349,000,000 | |
Fair value measurement, Assets, Sales | 5,000,000 | (1,000,000) | |
Fair value measurement, Assets, Cost of goods sold | (99,000,000) | 163,000,000 | |
Fair value measurement, Assets, Other expenses, net | (8,000,000) | 15,000,000 | |
Fair value measurement, Assets, Other comprehensive loss | 964,000,000 | 71,000,000 | |
Fair value measurement, Assets, Transfers into and/or out of Level 3 | 0 | 0 | |
Fair value measurement, Assets, Foreign currency translation | 7,000,000 | 23,000,000 | |
Balance at end of year | 1,135,000,000 | 266,000,000 | |
Fair value measurement, Assets, Sales | 0 | 0 | |
Fair value measurement, Assets, Cost of goods sold | 0 | 0 | |
Fair value measurement, Assets, Other expenses, net | (8,000,000) | 15,000,000 | |
Fair value measurement, Liabilities, Beginning balance | 376,000,000 | 410,000,000 | |
Fair value measurement, Liabilities, Sales | (16,000,000) | (27,000,000) | |
Fair value measurement, Liabilities, Other comprehensive loss | (191,000,000) | (7,000,000) | |
Fair value measurement, Liabilities, Purchases, sales, issuances, and settlements | 0 | 0 | |
Fair value measurement, Liabilities, Transfers into and/or out of Level 3 | 0 | 0 | |
Fair value measurement, Liabilities, Foreign currency translation | 0 | 0 | |
Fair value measurement, Liabilities, Ending balance | 169,000,000 | 376,000,000 | |
Fair value measurement, Liabilities, Sales | 0 | 0 | |
Fair value measurement, Liabilities, Cost of goods sold | 0 | 0 | |
Embedded Credit Derivative [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair value measurement, Liabilities, Beginning balance | 18,000,000 | 21,000,000 | |
Fair value measurement, Liabilities, Cost of goods sold | (1,000,000) | ||
Fair value measurement, Liabilities, Other expenses, net | 17,000,000 | (2,000,000) | |
Fair value measurement, Liabilities, Purchases, sales, issuances, and settlements | 0 | 0 | |
Fair value measurement, Liabilities, Transfers into and/or out of Level 3 | 0 | 0 | |
Fair value measurement, Liabilities, Foreign currency translation | 0 | 0 | |
Fair value measurement, Liabilities, Ending balance | 35,000,000 | 18,000,000 | |
Fair value measurement, Liabilities, Sales | 0 | 0 | |
Fair value measurement, Liabilities, Cost of goods sold | 0 | 0 | |
Fair value measurement, Liabilities, Other expenses, net | (17,000,000) | (2,000,000) | |
Energy Contracts [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance at beginning of year | 2,000,000 | 6,000,000 | |
Fair value measurement, Assets, Other expenses, net | (2,000,000) | ||
Fair value measurement, Assets, Other comprehensive loss | (1,000,000) | (4,000,000) | |
Fair value measurement, Assets, Transfers into and/or out of Level 3 | 0 | 0 | |
Fair value measurement, Assets, Foreign currency translation | 1,000,000 | ||
Balance at end of year | 2,000,000 | 2,000,000 | |
Fair value measurement, Assets, Sales | 0 | 0 | |
Fair value measurement, Assets, Cost of goods sold | 0 | $ 0 | |
Fair value measurement, Assets, Other expenses, net | (2,000,000) | ||
Fair value measurement, Liabilities, Other expenses, net | 1,000,000 | ||
Fair value measurement, Liabilities, Other comprehensive loss | 3,000,000 | ||
Fair value measurement, Liabilities, Purchases, sales, issuances, and settlements | 0 | ||
Fair value measurement, Liabilities, Transfers into and/or out of Level 3 | 0 | ||
Fair value measurement, Liabilities, Foreign currency translation | 0 | ||
Fair value measurement, Liabilities, Ending balance | 4,000,000 | ||
Fair value measurement, Liabilities, Sales | 0 | ||
Fair value measurement, Liabilities, Cost of goods sold | 0 | ||
Fair value measurement, Liabilities, Other expenses, net | $ 1,000,000 |
Derivatives and Other Financ159
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Parenthetical) (Detail) - USD ($) | 1 Months Ended | 12 Months Ended |
Nov. 30, 2014 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Fair value measurement, Assets, Purchases, sales, issuances, and settlements | $ 0 | $ 0 |
Derivatives and Other Financ160
Derivatives and Other Financial Instruments - Schedule of Carrying Values and Fair Values of Other Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Value[Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 1,919 | $ 1,877 |
Restricted cash | 37 | 20 |
Noncurrent receivables | 17 | 17 |
Available-for-sale securities | 193 | 153 |
Short-term borrowings | 38 | 54 |
Commercial paper | 0 | 0 |
Long-term debt due within one year | 21 | 29 |
Contingent payment related to an acquisition | 130 | 130 |
Long-term debt, less amount due within one year | 9,044 | 8,769 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 1,919 | 1,877 |
Restricted cash | 37 | 20 |
Noncurrent receivables | 17 | 17 |
Available-for-sale securities | 193 | 153 |
Short-term borrowings | 38 | 54 |
Commercial paper | 0 | 0 |
Long-term debt due within one year | 21 | 29 |
Contingent payment related to an acquisition | 130 | 130 |
Long-term debt, less amount due within one year | $ 8,922 | $ 9,445 |
Proposed Separation Transact161
Proposed Separation Transaction - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Selling, General Administrative, and Other Expenses [Member] | |
Proposed Separation Transaction [Line Items] | |
Costs related to proposed separation transaction | $ 24 |
Quarterly Data - Schedule of Qu
Quarterly Data - Schedule of Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||||||
Sales | $ 5,245 | $ 5,573 | $ 5,897 | $ 5,819 | $ 6,377 | $ 6,239 | $ 5,836 | $ 5,454 | $ 22,534 | $ 23,906 | $ 23,032 |
Net income (loss) attributable to Alcoa | $ (701) | $ 44 | $ 140 | $ 195 | $ 159 | $ 149 | $ 138 | $ (178) | $ (322) | $ 268 | $ (2,285) |
Basic | $ (0.55) | $ 0.02 | $ 0.10 | $ 0.15 | $ 0.12 | $ 0.13 | $ 0.12 | $ (0.16) | $ (0.31) | $ 0.21 | $ (2.14) |
Diluted | $ (0.55) | $ 0.02 | $ 0.10 | $ 0.14 | $ 0.11 | $ 0.12 | $ 0.12 | $ (0.16) | $ (0.31) | $ 0.21 | $ (2.14) |
Quarterly Data - Schedule of163
Quarterly Data - Schedule of Quarterly Data (Parenthetical) (Detail) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Income Statement [Abstract] | ||||||
Restructuring and other charges | $ 735 | € 150 | $ 1,195 | $ 1,168 | $ 782 | |
Restructuring and other charges, after-tax and noncontrolling interest | 507 | 836 | $ 703 | 585 | ||
Discrete income tax charge | 190 | |||||
Loss from divestitures before income tax | $ 332 | |||||
Net loss , after tax and noncontrolling interest | $ 163 | |||||
Impairment of goodwill | $ 25 | $ 25 | $ 1,731 |