Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 29, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AA | |
Entity Registrant Name | ALCOA CORP | |
Entity Central Index Key | 1,675,149 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 186,494,049 |
Statement of Consolidated Opera
Statement of Consolidated Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Sales (C & E) | $ 3,390 | $ 2,964 | $ 10,059 | $ 8,478 |
Cost of goods sold (exclusive of expenses below) | 2,534 | 2,340 | 7,547 | 6,652 |
Selling, general administrative, and other expenses | 58 | 70 | 189 | 211 |
Research and development expenses | 7 | 8 | 24 | 23 |
Provision for depreciation, depletion, and amortization | 173 | 194 | 559 | 563 |
Restructuring and other charges (D) | 177 | (10) | 389 | 12 |
Interest expense | 33 | 26 | 91 | 77 |
Other expenses (income), net (O) | 2 | 48 | 32 | (3) |
Total costs and expenses | 2,984 | 2,676 | 8,831 | 7,535 |
Income before income taxes | 406 | 288 | 1,228 | 943 |
Provision for income taxes | 251 | 119 | 569 | 328 |
Net income | 155 | 169 | 659 | 615 |
Less: Net income attributable to noncontrolling interest | 196 | 56 | 475 | 202 |
Consolidated net (loss) income attributable to Alcoa Corporation | $ (41) | $ 113 | $ 184 | $ 413 |
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS (F): | ||||
Basic | $ (0.22) | $ 0.61 | $ 0.99 | $ 2.24 |
Diluted | $ (0.22) | $ 0.60 | $ 0.97 | $ 2.21 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net (loss) income | $ 155 | $ 169 | $ 659 | $ 615 |
Other comprehensive income (loss), net of tax (G): | ||||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 402 | 49 | 689 | 214 |
Foreign currency translation adjustments | (196) | 185 | (805) | 402 |
Net change in unrecognized gains/losses on cash flow hedges | (24) | (420) | 321 | (672) |
Total Other comprehensive income (loss), net of tax | 182 | (186) | 205 | (56) |
Comprehensive income (loss) | 337 | (17) | 864 | 559 |
Alcoa Corporation [Member] | ||||
Net (loss) income | (41) | 113 | 184 | 413 |
Other comprehensive income (loss), net of tax (G): | ||||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 398 | 44 | 682 | 190 |
Foreign currency translation adjustments | (142) | 141 | (586) | 281 |
Net change in unrecognized gains/losses on cash flow hedges | (29) | (415) | 346 | (729) |
Total Other comprehensive income (loss), net of tax | 227 | (230) | 442 | (258) |
Comprehensive income (loss) | 186 | (117) | 626 | 155 |
Non-controlling Interest [Member] | ||||
Net (loss) income | 196 | 56 | 475 | 202 |
Other comprehensive income (loss), net of tax (G): | ||||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 4 | 5 | 7 | 24 |
Foreign currency translation adjustments | (54) | 44 | (219) | 121 |
Net change in unrecognized gains/losses on cash flow hedges | 5 | (5) | (25) | 57 |
Total Other comprehensive income (loss), net of tax | (45) | 44 | (237) | 202 |
Comprehensive income (loss) | $ 151 | $ 100 | $ 238 | $ 404 |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents (L) | $ 1,022 | $ 1,358 |
Receivables from customers | 1,017 | 811 |
Other receivables | 176 | 232 |
Inventories (I) | 1,666 | 1,453 |
Fair value of derivative instruments (L) | 57 | 113 |
Prepaid expenses and other current assets | 255 | 271 |
Total current assets | 4,193 | 4,238 |
Properties, plants, and equipment | 21,839 | 23,046 |
Less: accumulated depreciation, depletion, and amortization | 13,484 | 13,908 |
Properties, plants, and equipment, net | 8,355 | 9,138 |
Investments (H & N) | 1,381 | 1,410 |
Deferred income taxes | 599 | 814 |
Fair value of derivative instruments (L) | 42 | 128 |
Other noncurrent assets | 1,615 | 1,719 |
Total assets | 16,185 | 17,447 |
Current liabilities: | ||
Accounts payable, trade | 1,711 | 1,898 |
Accrued compensation and retirement costs | 420 | 459 |
Taxes, including income taxes | 417 | 282 |
Fair value of derivative instruments (L) | 133 | 185 |
Other current liabilities | 319 | 412 |
Long-term debt due within one year (L) | 4 | 16 |
Total current liabilities | 3,004 | 3,252 |
Long-term debt, less amount due within one year (J & L) | 1,820 | 1,388 |
Accrued pension benefits (K) | 1,210 | 2,341 |
Accrued other postretirement benefits (K) | 926 | 1,100 |
Asset retirement obligations | 528 | 617 |
Environmental remediation (N) | 248 | 258 |
Fair value of derivative instruments (L) | 630 | 1,105 |
Noncurrent income taxes | 297 | 309 |
Other noncurrent liabilities and deferred credits | 237 | 279 |
Total liabilities | 8,900 | 10,649 |
CONTINGENCIES AND COMMITMENTS (N) | ||
Alcoa Corporation shareholders' equity: | ||
Common stock | 2 | 2 |
Additional capital | 9,656 | 9,590 |
Retained earnings | 298 | 113 |
Accumulated other comprehensive loss (G) | (4,740) | (5,182) |
Total Alcoa Corporation shareholders' equity | 5,216 | 4,523 |
Noncontrolling interest | 2,069 | 2,275 |
Total equity | 7,285 | 6,798 |
Total liabilities and equity | $ 16,185 | $ 17,447 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FROM OPERATIONS | ||
Net income | $ 659 | $ 615 |
Adjustments to reconcile net income to cash from operations: | ||
Depreciation, depletion, and amortization | 559 | 564 |
Deferred income taxes | (16) | 64 |
Equity earnings, net of dividends | (11) | 1 |
Restructuring and other charges (D) | 389 | 12 |
Net gain from investing activities - asset sales (O) | (115) | |
Net periodic pension benefit cost (K) | 115 | 83 |
Stock-based compensation | 29 | 21 |
Other | (64) | 31 |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | ||
(Increase) in receivables | (209) | (112) |
(Increase) in inventories | (279) | (102) |
Decrease in prepaid expenses and other current assets | 3 | 62 |
(Decrease) Increase in accounts payable, trade | (135) | 109 |
(Decrease) in accrued expenses | (288) | (320) |
Increase in taxes, including income taxes | 248 | 15 |
Pension contributions (K) | (940) | (82) |
(Increase) in noncurrent assets | (89) | (88) |
(Decrease) Increase in noncurrent liabilities | (58) | 11 |
CASH (USED FOR) PROVIDED FROM OPERATIONS | (87) | 769 |
FINANCING ACTIVITIES | ||
Cash paid to former parent company related to separation | (247) | |
Net change in short-term borrowings (original maturities of three months or less) | 2 | |
Additions to debt (original maturities greater than three months) (J) | 553 | 3 |
Payments on debt (original maturities greater than three months)(J) | (105) | (55) |
Proceeds from the exercise of employee stock options | 23 | 38 |
Contributions from noncontrolling interest | 109 | 56 |
Distributions to noncontrolling interest | (566) | (244) |
Other | (8) | (6) |
CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES | 6 | (453) |
INVESTING ACTIVITIES | ||
Capital expenditures | (251) | (255) |
Proceeds from the sale of assets and businesses | 243 | |
Additions to investments (H) | (6) | (44) |
CASH USED FOR INVESTING ACTIVITIES | (257) | (56) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (1) | 8 |
Net change in cash and cash equivalents and restricted cash | (339) | 268 |
Cash and cash equivalents and restricted cash at beginning of year (B) | 1,365 | 859 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD (B) | $ 1,026 | $ 1,127 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Capital [Member] | Retained (Deficit) Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Beginning Balance at Dec. 31, 2016 | $ 7,697 | $ 2 | $ 9,531 | $ (104) | $ (3,775) | $ 2,043 |
Net (loss) income | 615 | 413 | 202 | |||
Other comprehensive (loss) income (G) | (56) | (258) | 202 | |||
Stock-based compensation | 21 | 21 | ||||
Common stock issued: compensation plans | 37 | 37 | ||||
Contributions | 56 | 56 | ||||
Distributions | (244) | (244) | ||||
Other | (8) | (5) | (3) | |||
Ending Balance at Sep. 30, 2017 | 8,118 | 2 | 9,584 | 309 | (4,033) | 2,256 |
Beginning Balance at Jun. 30, 2017 | 8,199 | 2 | 9,559 | 196 | (3,803) | 2,245 |
Net (loss) income | 169 | 113 | 56 | |||
Other comprehensive (loss) income (G) | (186) | (230) | 44 | |||
Stock-based compensation | 7 | 7 | ||||
Common stock issued: compensation plans | 20 | 20 | ||||
Distributions | (89) | (89) | ||||
Other | (2) | (2) | ||||
Ending Balance at Sep. 30, 2017 | 8,118 | 2 | 9,584 | 309 | (4,033) | 2,256 |
Beginning Balance at Dec. 31, 2017 | 6,798 | 2 | 9,590 | 113 | (5,182) | 2,275 |
Net (loss) income | 659 | 184 | 475 | |||
Other comprehensive (loss) income (G) | 205 | 442 | (237) | |||
Stock-based compensation | 29 | 29 | ||||
Common stock issued: compensation plans | 23 | 23 | ||||
Contributions | 109 | 109 | ||||
Distributions | (566) | (566) | ||||
Other | 28 | 14 | 1 | 13 | ||
Ending Balance at Sep. 30, 2018 | 7,285 | 2 | 9,656 | 298 | (4,740) | 2,069 |
Beginning Balance at Jun. 30, 2018 | 7,108 | 2 | 9,650 | 339 | (4,967) | 2,084 |
Net (loss) income | 155 | (41) | 196 | |||
Other comprehensive (loss) income (G) | 182 | 227 | (45) | |||
Stock-based compensation | 9 | 9 | ||||
Common stock issued: compensation plans | 1 | 1 | ||||
Distributions | (181) | (181) | ||||
Other | 11 | (4) | 15 | |||
Ending Balance at Sep. 30, 2018 | $ 7,285 | $ 2 | $ 9,656 | $ 298 | $ (4,740) | $ 2,069 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | A. Basis of Presentation year-end 10-Q 10-K References in these Notes to “ParentCo” refer to Alcoa Inc., a Pennsylvania corporation, and its consolidated subsidiaries (through October 31, 2016, at which time was renamed Arconic Inc. (Arconic)). On November 1, 2016 (the “Separation Date”), ParentCo separated into two standalone, publicly-traded companies, Alcoa Corporation and Arconic (the “Separation Transaction”). In connection with the Separation Transaction, as of October 31, 2016, the Company and Arconic entered into several agreements to effect the Separation Transaction, including a Separation and Distribution Agreement and a Tax Matters Agreement. See Note A to the Consolidated Financial Statements in Part II Item 8 of Alcoa Corporation’s Annual Report on Form 10-K Principles of Consolidation. AWAC is an unincorporated global joint venture between Alcoa Corporation and Alumina Limited and consists of several affiliated operating entities, which own, or have an interest in, or operate the bauxite mines and alumina refineries within Alcoa Corporation’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and a portion of the São Luís refinery, all in Brazil) and the Portland smelter in Australia. Alcoa Corporation owns 60% and Alumina Limited owns 40% of these individual entities, which are consolidated by the Company for financial reporting purposes and include Alcoa of Australia Limited, Alcoa World Alumina LLC (AWA), and Alcoa World Alumina Brasil Ltda. (AWAB). Alumina Limited’s interest in the equity of such entities is reflected as Noncontrolling interest on the accompanying Consolidated Balance Sheet. |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Guidance | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted and Recently Issued Accounting Guidance | B. Recently Adopted and Recently Issued Accounting Guidance Adopted On January 1, 2018, Alcoa Corporation adopted guidance issued by the Financial Accounting Standards Board (FASB) to the recognition of revenue from contracts with customers. This guidance created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersedes virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. Management’s assessment of this guidance was applied only to those customer contracts that were open on the date of adoption under the modified retrospective method. Through a previously established project team, the Company completed a detailed review of the terms and provisions of its customer contracts, as well as evaluated these contracts under the new guidance, throughout 2017 and concluded that Alcoa Corporation’s revenue recognition practices were in compliance with this framework. That said, the Company did make some minor modifications to its internal accounting policies and internal control structure to ensure that any future customer contracts that may have different terms and conditions of those that the Company has today are properly evaluated under the new guidance. Other than providing additional disclosure (see Note C), the adoption of this guidance had no impact on the Consolidated Financial Statements. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting and reporting of certain equity investments. This guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Additionally, the impairment assessment of equity investments without readily determinable fair values has been simplified by requiring a qualitative assessment to identify impairment. The adoption of this guidance had no impact on the Consolidated Financial Statements, as all of Alcoa Corporation’s equity investments are accounted for under the equity method of accounting. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the presentation of several items in the statement of cash flows. Specifically, the guidance identifies nine cash flow items and the sections where they must be presented within the statement of cash flows, including distributions received from equity method investees, proceeds from the settlement of insurance claims, and restricted cash. Other than as it relates to restricted cash, the adoption of this guidance had no impact on the Consolidated Financial Statements. This guidance requires that restricted cash be aggregated with cash and cash equivalents in both the beginning-of-period end-of-period beginning-of-period end-of non-cash September 30, 2018 December 31, 2017 Cash and cash equivalents $ 1,022 $ 1,358 Restricted cash* 4 7 $ 1,026 $ 1,365 * These amounts are reported in Prepaid expenses and other current assets on the accompanying Consolidated Balance Sheet. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting for intra-entity transactions, other than inventory. The guidance requires the current and deferred income tax consequences of an intra-entity transfer to be recorded immediately when the transaction occurs; the exception to defer the tax consequences of inventory transactions is maintained. Prior to this guidance, no immediate tax impact was permitted to be recognized in an entity’s financial statements as a result of intra-entity transfers of assets. An entity was precluded from reflecting a tax benefit or expense from an intra-entity asset transfer between entities that file separate tax returns, whether or not such entities are in different tax jurisdictions, until the asset had been sold to a third party or otherwise recovered. The buyer of such asset was prohibited from recognizing a deferred tax asset for the temporary difference arising from the excess of the buyer’s tax basis over the cost to the seller. The adoption of this guidance had an immaterial impact on the Consolidated Financial Statements. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to accounting for business combinations. This guidance clarifies the definition of a business for the purposes of evaluating whether a particular transaction should be accounted for as an acquisition or disposal of a business or an asset. Generally, a business is an integrated set of assets and activities that contain inputs, processes, and outputs, although outputs are not required. This guidance provides a “screen” to determine whether an integrated set of assets and activities qualifies as a business. If substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of similar identifiable assets, the definition of a business has not been met and the transaction should be accounted for as an acquisition or disposal of an asset. Otherwise, an entity is required to evaluate whether the integrated set of assets and activities include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and are no longer to consider whether a market participant could replace any missing elements. This guidance also narrows the definition of an output. Previously, an output was defined as the ability to provide a return in the form of dividends, lower costs, or other economic benefits directly to investors, owners, members, or participants. An output is now defined as the ability to provide goods or services to customers, investment income, or other revenues. The adoption of this guidance had no immediate impact on the Consolidated Financial Statements; however, this guidance will need to be considered in the event Alcoa Corporation acquires or disposes of an integrated set of assets and activities. On January 1, 2018, Alcoa Corporation early adopted guidance issued by the FASB to the assessment of goodwill for impairment as it relates to the quantitative test. Prior to this guidance, there were two steps when performing a quantitative impairment test. The first step required an entity to compare the current fair value of a reporting unit to its carrying value. In the event the reporting unit’s estimated fair value was less than its carrying value, an entity performed the second step, which was to compare the carrying amount of the reporting unit’s goodwill with the implied fair value of that goodwill. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the fair value amounts assigned to all of the assets and liabilities of that unit as if the reporting unit was acquired in a business combination and the fair value of the reporting unit represented the purchase price. If the carrying value of goodwill exceeded its implied fair value, an impairment loss equal to such excess was recognized. This guidance eliminates the second step of the quantitative impairment test. Accordingly, an entity would recognize an impairment of goodwill for a reporting unit, if under what was previously referred to as the first step, the estimated fair value of the reporting unit is less than the carrying value. The impairment would be equal to the excess of the reporting unit’s carrying value over its fair value not to exceed the total amount of goodwill applicable to that reporting unit. The adoption of this guidance had no immediate impact on the Consolidated Financial Statements; however, this guidance will need to be considered each time the Company performs an assessment of goodwill for impairment under the quantitative test. On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the presentation of net periodic benefit cost related to pension and other postretirement benefit plans. This guidance requires that an entity report the service cost component of net periodic benefit cost in the same line item(s) on its income statement as other compensation costs arising from services rendered by the pertinent employees during a reporting period. The other components of net periodic benefit cost (see Note K) are required to be reported separately from the service cost component. In other words, these other components may be aggregated and presented as a separate line item or they may be reported in existing line items on the income statement other than such line items that include the service cost component. Previously, Alcoa Corporation reported all components of net periodic benefit cost, except for certain settlements, curtailments, and special termination benefits, in Cost of goods sold (business employees) and Selling, general administrative, and other expenses (corporate employees) consistent with the location of other compensation costs related to the respective employees. The non-service non-service non-service non-service non-service non-service On January 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting for stock-based compensation when there has been a modification to the terms or conditions of a share-based payment award. This guidance requires an entity to account for the modification only when there has been a substantive change to the terms or conditions of a share-based payment award. A substantive change occurs when the fair value, vesting conditions or balance sheet classification (liability or equity) of a share-based payment award is/are different immediately before and after the modification. Previously, an entity was required to account for any modification in the terms or conditions of a share-based payment award. The adoption of this guidance had no immediate impact on the Consolidated Financial Statements; however, this guidance will need to be considered if the Company initiates a modification that is determined to be a substantive change to an outstanding share-based award. Additionally, the Company will no longer account for any future non-substantive On April 1, 2018, Alcoa Corporation early adopted guidance issued by the FASB to the accounting for hedging activities retroactive to January 1, 2018. This guidance permits hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk; reduces current limitations on the designation and measurement of a hedged item in a fair value hedge of interest rate risk; removes the requirement to separately measure and report hedge ineffectiveness; provides an election to systematically and rationally recognize in earnings the initial value of any amount excluded from the assessment of hedge effectiveness for all types of hedges; and eases the requirements of effectiveness testing. Additionally, modifications to existing disclosures, as well as additional disclosures, are required, as applicable, to reflect these changes regarding the measurement and recognition of hedging activities. This guidance is to be initially applied only to hedging instruments that exist as of the adoption date using the modified retrospective method. In other words, any financial statement impact from application of these changes to open hedging instruments as of the adoption date related to periods prior to the adoption year is to be recognized through a cumulative effect adjustment in beginning retained earnings of the adoption year. Accordingly, upon adoption of this guidance, Alcoa Corporation recognized an immaterial cumulative effect adjustment within equity effective January 1, 2018 related to open Level 1 hedging instruments as of the adoption date. The Company had no open Level 2 hedging instruments as of the adoption date and there was no financial statement impact from Alcoa Corporation’s open Level 3 hedging instruments as of the adoption date. This guidance will also be applied prospectively upon the Company entering into any new hedging instruments. See the Derivatives section of Note L for additional information. Issued In January 2018, the FASB issued guidance regarding the assessment of land easements (or rights of way) under the pending lease accounting requirements to be adopted on January 1, 2019 (see below). This guidance provides an entity an option to not evaluate existing or expired land easements as leases in preparation for the adoption of the new lease accounting requirements, as long as such land easements were recorded as something other than leases under current accounting requirements. That said, any new land easement acquired or existing land easement modified on January 1, 2019 or later must be assessed for lease accounting under the new requirements. This guidance becomes effective for Alcoa Corporation on January 1, 2019. Management plans to elect the option to not evaluate existing or expired land easements that are currently accounted for as something other than leases under the new lease accounting requirements. The Company’s land easements are currently accounted for as fixed assets and are immaterial to Alcoa Corporation’s Consolidated Financial Statements. Accordingly, management has determined that the adoption of this guidance will not have an immediate impact on the Company’s Consolidated Financial Statements. The new lease accounting requirements will need to be considered if the Company acquires a new land easement or modifies an existing land easement on January 1, 2019 or later. In February 2018, the FASB issued guidance regarding the reclassification of certain income tax effects reported in accumulated comprehensive income (loss) in response to U.S. tax legislation enacted on December 22, 2017 known as the U.S. Tax Cuts and Jobs Act of 2017 (the “TCJA”). For corporations, one of the main provisions of the TCJA was the reduction in the corporate income tax rate to 21% from 35%. Under current income tax accounting requirements, an entity was required to remeasure applicable U.S. deferred tax assets and deferred tax liabilities at the 21% tax rate effective on the TCJA enactment date. This remeasurement was required to be recognized in an entity’s income tax provision in its income statement. However, certain of these deferred tax assets and deferred tax liabilities relate to income tax effects initially recognized at the 35% tax rate through other comprehensive income (loss) on items reported within accumulated other comprehensive income (loss) on an entity’s balance sheet. Consequently, an entity’s financial statements will reflect an inconsistency between the deferred tax assets and deferred tax liabilities measured at 21% and the related income tax effects in accumulated other comprehensive income (loss) recorded at 35%. Accordingly, this guidance provides a one-time In June 2018, the FASB issued guidance regarding the accounting for nonemployee share-based payment transactions. This guidance effectively changes the accounting for such transactions to be consistent with the accounting for employee share-based payment transactions. The nonemployee share-based payment transactions subject to this guidance are those in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. This guidance is not to be applied to other nonemployee share-based payment transactions, such as those used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under revenue recognition principles. This guidance becomes effective for Alcoa Corporation on January 1, 2019, with early adoption permitted. The only nonemployees to receive share-based payments from Alcoa Corporation are the members of the Company’s Board of Directors. Accordingly, management does not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued separate guidance regarding the respective disclosure requirements associated with fair value measurements and defined benefit plans. This guidance makes changes to the disclosures of fair value measurements and defined benefit plans through several removals, modifications, additions, and/or clarifications of the existing requirements. The following are the changes that will have an immediate disclosure impact for Alcoa Corporation upon adoption of the guidance for fair value measurements: (i) disclosure of the valuation processes for Level 3 fair value measurements is no longer required, (ii) changes in unrealized gains and losses for the reporting period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period is a new disclosure requirement, and (iii) the range and weighted average (or other reasonable and rational method) of significant unobservable inputs used to develop Level 3 fair value measurements is a new disclosure requirement. The following are the changes that will have an immediate disclosure impact for Alcoa Corporation upon adoption of the guidance for defined benefit plans: (i) disclosure of the amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year is no longer required, (ii) disclosure of the effects of a one-percentage-point In August 2018, the FASB issued guidance regarding the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract (in other words, does not contain a software license). This guidance aligns the accounting for cloud computing implementation costs with that of costs to develop or obtain internal-use In February 2016, the FASB issued guidance regarding the accounting for leases. This guidance requires lessees to recognize a right-of-use right-of-use right-of-use |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | C. Revenue The Company measures revenue based on the consideration it expects to be entitled to receive in exchange for its products. The standard terms and conditions of customer orders and contracts include general rights of return and product warranty provisions related to nonconforming or “out-of-spec” The Company considers shipping and handling activities as costs to fulfill the promise to transfer the related products. As a result, customer payments of shipping and handling costs are recorded as a component of revenue. Also, Alcoa Corporation may collect various taxes (e.g., sales, use, value-added, excise) from its customers related to the sale of its products and remit such amounts to governmental authorities. As such, amounts paid to the Company for these types of taxes are excluded from the transaction price used to determine the proper measurement of revenue. Alcoa Corporation has five product divisions as follows: Bauxite— Alumina— non-metallurgical Primary aluminum— t-bar, value-add Flat-rolled aluminum— Energy— The following table represents the general commercial profile of the Company’s Bauxite, Alumina, Primary aluminum, and Flat-rolled aluminum product divisions (see text below table for Energy): Product division Pricing components Shipping terms (4) Payment terms (5) Bauxite Negotiated FOB/CIF LC Sight Alumina: Smelter-grade API (1) FOB LC Sight/CAD/Net 30 days Non-metallurgical Negotiated FOB/CIF Net 30 days Primary aluminum: Common alloy ingot LME + Regional premium (2) DAP/CIF Net 30 to 45 days Value-add LME + Regional premium + Product premium (2) DAP/CIF Net 30 to 45 days Flat-rolled aluminum Metal + Conversion (3) DAP Negotiated (1) API (Alumina Price Index) is a pricing mechanism that is calculated by the Company based on the weighted average of a prior month’s daily spot prices published by the following three indices: CRU Metallurgical Grade Alumina Price; Platts Metals Daily Alumina PAX Price; and Metal Bulletin Non-Ferrous (2) LME (London Metal Exchange) is a globally recognized exchange for commodity trading, including aluminum. The LME pricing component represents the underlying base metal component, based on quoted prices for aluminum on the exchange. The regional premium represents the incremental price over the base LME component that is associated with the physical delivery of metal to a particular region (e.g., the Midwest premium for metal sold in the United States). The product premium represents the incremental price for receiving physical metal in a particular shape (e.g., billet, rod, slab, etc.) or alloy. (3) Metal represents the underlying base metal component plus a regional premium (see footnote 2). Conversion represents the incremental price over the metal price component that is associated with converting primary or scrap aluminum into sheet. (4) CIF (cost, insurance, and freight) means that the Company pays for these items until the product reaches the buyer’s designated destination point related to transportation by vessel. DAP (delivered at place) means the same as CIF related to all methods of transportation. FOB (free on board) means that the Company pays for costs, insurance, and freight until the product reaches the seller’s designated shipping point. (5) The net number of days means that the customer is required to remit payment to the Company for the invoice amount within the designated number of days. LC Sight is a letter of credit that is payable immediately (usually within five to ten business days) after a seller meets the requirements of the letter of credit (i.e. shipping documents that evidence the seller performed its obligations as agreed to with a buyer). CAD (cash against documents) is a payment arrangement in which a seller instructs a bank to provide shipping and title documents to the buyer at the time the buyer pays in full the accompanying bill of exchange. For the Company’s Energy product division, sales of electricity are based on current market prices. Electricity is provided to customers on demand through a national or regional power grid; the customer simultaneously receives and consumes the electricity. Payment terms are generally within 10 days related to the previous 30 days of electricity consumption. The following table details Alcoa Corporation’s revenue by product division: Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Primary aluminum $ 1,658 $ 1,608 $ 5,176 $ 4,458 Alumina 1,098 710 3,079 2,187 Flat-rolled aluminum 472 410 1,417 1,286 Energy 115 157 261 340 Bauxite 63 104 179 254 Other* (16 ) (25 ) (53 ) (47 ) $ 3,390 $ 2,964 $ 10,059 $ 8,478 * Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum (see Note L). |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | D. Restructuring and Other Charges In June 2018, management decided not to restart the fully curtailed Wenatchee smelter within the term provided in the related electricity supply agreement. Alcoa Corporation was therefore required to make a $62 payment to the energy supplier under the provisions of the agreement. Additionally, management decided to permanently close one (38 kmt) of the four potlines at this smelter. This potline has not operated since 2001 and the investments needed to restart this line are cost prohibitive. The remaining three curtailed potlines have a capacity of 146 kmt. In connection with these decisions, the Company recognized a charge of $73, composed of the $62 payment, $10 for asset impairments, and $1 for asset retirement obligations triggered by the decision to decommission the potline. In the third quarter and nine-month period of 2017, Alcoa Corporation recorded $10 of income and $12 of expense, respectively, in Restructuring and other charges, which were comprised of the following components: $6 and $24, respectively, for additional contract costs related to the curtailed Wenatchee and São Luís (Brazil) smelters; $4 and $17, respectively, for layoff costs, including the separation of approximately 10 and 120 (110 in the Aluminum segment) employees, respectively, and related pension costs of $3 and $6, respectively (see Note K); $7 (both periods) for costs related to the relocation of the Company’s headquarters and principal executive office from New York, New York to Pittsburgh, Pennsylvania; a charge of $2 (both periods) for miscellaneous items; and a reversal of $29 and $38, respectively, associated with several reserves related to prior periods (see below). In July 2017, Alcoa Corporation announced plans to restart three (161 kmt of capacity) of the five potlines (269 kmt of capacity) at the Warrick (Indiana) smelter. This smelter was previously permanently closed in March 2016 by ParentCo. The capacity identified for restart will directly supply the existing rolling mill at the Warrick location to improve efficiency of the integrated site and provide an additional source of metal to help meet an anticipated increase in production volumes. As a result of the decision to reopen this smelter, in the 2017 third quarter, Alcoa Corporation reversed $29 in remaining liabilities related to the original closure decision. These liabilities consisted of $20 in asset retirement obligations and $4 in environmental remediation obligations, which were necessary due to the previous decision to demolish the smelter, and $5 in severance and contract termination costs. Additionally, the carrying value of the smelter and related assets was reduced to zero as the smelter ramped down between the permanent closure decision date (end of 2015) and the end of March 2016. Once these assets are placed back into service in conjunction with the restart, their carrying value will remain zero. As such, only newly acquired or constructed assets related to the Warrick smelter will be depreciated. Alcoa Corporation does not include Restructuring and other charges in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Bauxite $ 1 $ 1 $ 1 $ 1 Alumina 1 3 3 2 Aluminum 2 7 86 34 Segment total 4 11 90 37 Corporate 173 (21 ) 299 (25 ) Total restructuring and other charges $ 177 $ (10 ) $ 389 $ 12 As of September 30, 2018, approximately 130 of the 140 employees associated with 2017 restructuring programs were separated. The remaining separations for the 2017 restructuring programs are expected to be completed by the end of 2018. In the 2018 third quarter and nine-month period, cash payments of $1 and $3, respectively, were made against layoff reserves related to 2017 restructuring programs. Activity and reserve balances for restructuring charges were as follows: Layoff costs Other costs Total Reserve balances at December 31, 2016 $ 38 $ 28 $ 66 2017: Cash payments (30 ) (43 ) (73 ) Restructuring charges 23 67 90 Other* (20 ) (18 ) (38 ) Reserve balances at December 31, 2017 11 34 45 2018: Cash payments (7 ) (92 ) (99 ) Restructuring charges 1 102 103 Other* (1 ) (7 ) (8 ) Reserve balances at September 30, 2018 $ 4 $ 37 $ 41 * Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In the 2018 nine-month period, Other for Other costs also included a reclassification of the following restructuring charges: $1 in asset retirement and $2 in environmental obligations, as these liabilities were included in Alcoa Corporation’s separate reserves for asset retirement obligations and environmental remediation. In 2017, Other for Layoff costs also included a reclassification of $8 in pension benefits costs, as these obligations were included in Alcoa Corporation’s separate liability for pension benefits obligations. Additionally in 2017, Other for Other costs also included a reclassification of the following restructuring charges: $10 in asset retirement and $8 in environmental obligations, as these liabilities were included in Alcoa Corporation’s separate reserves for asset retirement obligations and environmental remediation. The remaining reserves are expected to be paid in cash during the fourth quarter of 2018, with the exception of $29 that is expected to be paid between 2019 ($20) and 2020 ($9). This amount is comprised of $15 related to the Portovesme smelter (see “Italy 148” in the Litigation section of Note N), $8 associated with supplier contract-related costs at the Wenatchee smelter, $3 related to the termination of an office lease contract, and $3 for other items. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | E. Segment Information Bauxite Alumina Aluminum Total Third quarter ended September 30, 2018 Sales: Third-party sales $ 67 $ 1,101 $ 2,198 $ 3,366 Intersegment sales 224 544 6 774 Total sales $ 291 $ 1,645 $ 2,204 $ 4,140 Adjusted EBITDA $ 106 $ 660 $ 73 $ 839 Supplemental information: Depreciation, depletion, and amortization $ 27 $ 48 $ 91 $ 166 Equity income (loss) — 10 (5 ) 5 Third quarter ended September 30, 2017 Sales: Third-party sales $ 104 $ 713 $ 2,090 $ 2,907 Intersegment sales 221 398 9 628 Total sales $ 325 $ 1,111 $ 2,099 $ 3,535 Adjusted EBITDA $ 112 $ 203 $ 315 $ 630 Supplemental information: Depreciation, depletion, and amortization $ 24 $ 53 $ 106 $ 183 Equity loss — (5 ) (7 ) (12 ) Bauxite Alumina Aluminum Total Nine months ended September 30, 2018 Sales: Third-party sales $ 191 $ 3,083 $ 6,722 $ 9,996 Intersegment sales 699 1,534 14 2,247 Total sales $ 890 $ 4,617 $ 6,736 $ 12,243 Adjusted EBITDA $ 316 $ 1,690 $ 457 $ 2,463 Supplemental information: Depreciation, depletion, and amortization $ 83 $ 150 $ 305 $ 538 Equity income (loss) — 23 (13 ) 10 Nine months ended September 30, 2017 Sales: Third-party sales $ 254 $ 2,196 $ 5,884 $ 8,334 Intersegment sales 648 1,143 16 1,807 Total sales $ 902 $ 3,339 $ 5,900 $ 10,141 Adjusted EBITDA $ 319 $ 727 $ 766 $ 1,812 Supplemental information: Depreciation, depletion, and amortization $ 61 $ 155 $ 315 $ 531 Equity loss — (10 ) (11 ) (21 ) The following table reconciles total segment Adjusted EBITDA to consolidated net (loss) income attributable to Alcoa Corporation: Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Total segment Adjusted EBITDA $ 839 $ 630 $ 2,463 $ 1,812 Unallocated amounts: Transformation (1),(2) 1 (11 ) (2 ) (59 ) Corporate inventory accounting (1),(3) (17 ) (9 ) (18 ) (12 ) Corporate expenses (4) (22 ) (33 ) (75 ) (100 ) Provision for depreciation, depletion, and amortization (173 ) (194 ) (559 ) (563 ) Restructuring and other charges (D) (177 ) 10 (389 ) (12 ) Interest expense (33 ) (26 ) (91 ) (77 ) Other (expenses) income, net (O) (2 ) (48 ) (32 ) 3 Other (1),(5) (10 ) (31 ) (69 ) (49 ) Consolidated income before income taxes 406 288 1,228 943 Provision for income taxes (251 ) (119 ) (569 ) (328 ) Net income attributable to noncontrolling interest (196 ) (56 ) (475 ) (202 ) Consolidated net (loss) income attributable to Alcoa Corporation $ (41 ) $ 113 $ 184 $ 413 (1) Effective in the first quarter of 2018, management elected to change the presentation of certain line items in the reconciliation of total segment Adjusted EBITDA to consolidated net (loss) income attributable to Alcoa Corporation to provide additional transparency to the nature of these reconciling items. Accordingly, Transformation (see footnote 2), which was previously reported within Other, is presented as a separate line item. Additionally, Impact of LIFO (last in, first out) and Metal price lag, which were previously reported as separate line items, are now combined and reported in a new line item labeled Corporate inventory accounting (see footnote 3). Also, the impact of intersegment profit eliminations, which was previously reported within Other, is reported in the new Corporate inventory accounting line item. The applicable information for all prior periods presented was recast to reflect these changes. (2) Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. (3) Corporate inventory accounting is composed of the impacts of LIFO inventory accounting, metal price lag, and intersegment profit eliminations. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by Alcoa Corporation’s rolled aluminum operations. In general, when the price of metal increases, metal price lag is favorable, and when the price of metal decreases, metal price lag is unfavorable. (4) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center. (5) Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on Alcoa Corporation’s Statement of Consolidated Operations that are not included in the Adjusted EBITDA of the reportable segments. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | F. Earnings Per Share The information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (shares in millions): Third quarter ended Nine months ended September 30, 2018 2017 2018 2017 Net (loss) income attributable to Alcoa Corporation $ (41 ) $ 113 $ 184 $ 413 Average shares outstanding – basic 186 185 186 184 Effect of dilutive securities: Stock options — 1 1 1 Stock and performance awards — 1 2 2 Average shares outstanding – diluted 186 187 189 187 In the third quarter of 2018, 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 Corporation generated a net loss. As a result, 4 million stock awards and stock options combined were not included in the computation of diluted EPS. Had Alcoa Corporation generated net income in the 2018 third quarter, 2 million potential shares of common stock related to stock awards and stock options combined would have been included in diluted average shares outstanding. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | G. Accumulated Other Comprehensive Loss The following table details the activity of the three components that comprise Accumulated other comprehensive loss for both Alcoa Corporation’s shareholders and Noncontrolling interest: Alcoa Corporation Noncontrolling interest Third quarter ended September 30, Third quarter ended September 30, 2018 2017 2018 2017 Pension and other postretirement benefits (K) Balance at beginning of period $ (2,502 ) $ (2,184 ) $ (44 ) $ (37 ) Other comprehensive income: Unrecognized net actuarial loss and prior service cost/benefit 174 (6 ) 4 6 Tax (expense) benefit (1 ) 2 (1 ) (2 ) Total Other comprehensive income (loss) before reclassifications, net of tax 173 (4 ) 3 4 Amortization of net actuarial loss and prior service cost/benefit (1) 227 50 1 1 Tax expense (2) (2 ) (2 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 225 48 1 1 Total Other comprehensive income 398 44 4 5 Balance at end of period $ (2,104 ) $ (2,140 ) $ (40 ) $ (32 ) Foreign currency translation Balance at beginning of period $ (1,911 ) $ (1,515 ) $ (746 ) $ (600 ) Other comprehensive (loss) income (3) (142 ) 141 (54 ) 44 Balance at end of period $ (2,053 ) $ (1,374 ) $ (800 ) $ (556 ) Cash flow hedges (L) Balance at beginning of period $ (554 ) $ (104 ) $ 21 $ 63 Other comprehensive (loss) income: Net change from periodic revaluations (60 ) (545 ) 12 (2 ) Tax benefit (expense) 10 109 (4 ) 1 Total Other comprehensive (loss) income before reclassifications, net of tax (50 ) (436 ) 8 (1 ) Net amount reclassified to earnings: Aluminum contracts (4) 26 33 — — Financial contracts (5) (6 ) (8 ) (4 ) (5 ) Foreign exchange contracts (4) 3 — — — Sub-total 23 25 (4 ) (5 ) Tax (expense) benefit (2) (2 ) (4 ) 1 1 Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax (6) 21 21 (3 ) (4 ) Total Other comprehensive (loss) income (29 ) (415 ) 5 (5 ) Balance at end of period $ (583 ) $ (519 ) $ 26 $ 58 Alcoa Corporation Noncontrolling interest Nine months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Pension and other postretirement benefits (K) Balance at beginning of period $ (2,786 ) $ (2,330 ) $ (47 ) $ (56 ) Other comprehensive income: Unrecognized net actuarial loss and prior service cost/benefit 250 42 7 24 Tax (expense) benefit (3 ) 5 (2 ) (2 ) Total Other comprehensive income before reclassifications, net of tax 247 47 5 22 Amortization of net actuarial loss and prior service cost/benefit (1) 487 149 2 2 Tax expense (2) (52 ) (6 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 435 143 2 2 Total Other comprehensive income 682 190 7 24 Balance at end of period $ (2,104 ) $ (2,140 ) $ (40 ) $ (32 ) Foreign currency translation Balance at beginning of period $ (1,467 ) $ (1,655 ) $ (581 ) $ (677 ) Other comprehensive (loss) income (3) (586 ) 281 (219 ) 121 Balance at end of period $ (2,053 ) $ (1,374 ) $ (800 ) $ (556 ) Cash flow hedges (L) Balance at beginning of period $ (929 ) $ 210 $ 51 $ 1 Other comprehensive income (loss): Net change from periodic revaluations 344 (975 ) (18 ) 88 Tax (expense) benefit (58 ) 186 5 (26 ) Total Other comprehensive income (loss) before reclassifications, net of tax 286 (789 ) (13 ) 62 Net amount reclassified to earnings: Aluminum contracts (4) 87 82 — — Financial contracts (5) (26 ) (11 ) (17 ) (7 ) Foreign exchange contracts (4) 2 — — — Sub-total 63 71 (17 ) (7 ) Tax (expense) benefit (2) (3 ) (11 ) 5 2 Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax (6) 60 60 (12 ) (5 ) Total Other comprehensive income (loss) 346 (729 ) (25 ) 57 Balance at end of period $ (583 ) $ (519 ) $ 26 $ 58 (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note K). For the third quarter ended and nine months ended September 30, 2018, the amounts for Alcoa Corporation include $175 (net) and $319 (net), respectively, and for Noncontrolling interest include $1 (both periods) related to settlements and/or curtailments of certain pension and other postretirement employee benefits (see Note K). (2) These amounts were reported in Provision for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (4) These amounts were reported in Sales on the accompanying Statement of Consolidated Operations. (5) These amounts were reported in Cost of goods sold on the accompanying Statement of Consolidated Operations. (6) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 5. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | H. Investments Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Sales $ 1,343 $ 979 $ 3,963 $ 2,853 Cost of goods sold 1,062 792 3,100 2,186 Net income 46 55 143 97 In June 2018, Alcoa Corporation, Rio Tinto plc, and the provincial government of Quebec, Canada launched a new joint venture, Elysis Limited Partnership (Elysis). The purpose of this partnership is to advance larger scale development and commercialization of the Company’s patent-protected technology that produces oxygen and eliminates all direct greenhouse gas emissions from the traditional aluminum smelting process. Alcoa Corporation and Rio Tinto plc, as general partners, each own a 48.235% stake in Elysis and the Quebec provincial government, as a limited partner, owns a 3.53% stake. The federal government of Canada and Apple Inc., as well as the Quebec provincial government, will provide initial financing to the partnership. The total planned combined investment (equity and debt) of the five participants in the joint venture is $145 (C$188). Alcoa Corporation and Rio Tinto plc will invest a combined $44 (C$55) over the next three years, as well as contribute and license certain intellectual property and patents to Elysis. Alcoa Corporation’s investment in Elysis is accounted for under the equity method. In the second quarter of 2018, the Company made an initial investment of $5 (C$6). |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | I. Inventories September 30, 2018 December 31, 2017 Finished goods $ 339 $ 296 Work-in-process 339 258 Bauxite and alumina 619 585 Purchased raw materials 550 473 Operating supplies 145 147 LIFO reserve (326 ) (306 ) $ 1,666 $ 1,453 At September 30, 2018 and December 31, 2017, the total amount of inventories valued on a LIFO basis was $570, or 29%, and $516, or 29%, respectively, of total inventories before LIFO adjustments. The inventory values, prior to the application of LIFO, are generally determined under the average cost method, which approximates current cost. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | J. Debt 144A Debt— ANHBV has the option to redeem the 2028 Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the 2028 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after May 2023 at a redemption price specified in the indenture (up to 103.063% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2028 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2028 Notes repurchased, plus any accrued and unpaid interest on the 2028 Notes repurchased. The 2028 Notes are senior unsecured obligations of ANHBV and do not entitle the holders to any registration rights pursuant to a registration rights agreement. ANHBV does not intend to file a registration statement with respect to resales of or an exchange offer for the 2028 Notes. The 2028 Notes are guaranteed on a senior unsecured basis by Alcoa Corporation and its subsidiaries that are guarantors under the Company’s Amended Revolving Credit Agreement (the “subsidiary guarantors” and, together with Alcoa Corporation, the “guarantors”) (see Note L to the Consolidated Financial Statements included in Part II Item 8 of the Company’s Annual Report on Form 10-K The 2028 Notes indenture includes several customary affirmative covenants. Additionally, the 2028 Notes indenture contains several negative covenants, that, subject to certain exceptions, include limitations on liens, limitations on sale and leaseback transactions, and a prohibition on a reduction in the ownership of AWAC entities below an agreed level. The negative covenants in the 2028 Notes indenture are less extensive than those in the 2024 Notes and 2026 Notes (see Note L to the Consolidated Financial Statements included in Part II Item 8 of the Company’s Annual Report on Form 10-K The 2028 Notes rank equally in right of payment with all of ANHBV’s existing and future senior indebtedness, including the 2024 Notes and 2026 Notes; rank senior in right of payment to any future subordinated obligations of ANHBV; and are effectively subordinated to ANHBV’s existing and future secured indebtedness, including under the Amended Revolving Credit Agreement, to the extent of the value of property and assets securing such indebtedness. BNDES Loans— |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | K. Pension and Other Postretirement Benefits Third quarter ended September 30, Nine months ended September 30, Pension benefits 2018 2017 2018 2017 Service cost $ 13 $ 18 $ 41 $ 53 Interest cost (1) 56 62 170 183 Expected return on plan assets (1) (84 ) (101 ) (256 ) (298 ) Recognized net actuarial loss (1) 47 47 154 139 Amortization of prior service cost (1) 2 2 6 6 Settlements (2) 232 — 399 3 Curtailments (2) — — 5 — Special termination benefits (2) — 3 — 3 Net periodic benefit cost $ 266 $ 31 $ 519 $ 89 (1) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Notes B and O). (2) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). Third quarter ended September 30, Nine months ended September 30, Other postretirement benefits 2018 2017 2018 2017 Service cost $ 2 $ 2 $ 4 $ 4 Interest cost (1) 8 9 26 28 Recognized net actuarial loss (1) 3 3 10 10 Amortization of prior service benefit (1) — (1 ) (1 ) (4 ) Settlements (2) (56 ) — (56 ) — Curtailments (2) — – (28 ) – Net periodic benefit cost $ (43 ) $ 13 $ (45 ) $ 38 (1) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Notes B and O). (2) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). Alcoa Corporation sponsors several defined benefit pension and other postretirement employee benefit plans, primarily in the United States and Canada. As of January 1, 2018, the pension benefit plans and the other postretirement benefit plans cover an aggregate of approximately 54,000 and approximately 48,000 participants, respectively. In the 2018 nine-month period, management initiated several actions to certain of these plans as follows: • Action# 1— • Action# 2— pre-Medicare • Action# 3— • Action# 4— • Action# 5— one-time These actions resulted in the curtailment or settlement of benefits thereby requiring remeasurement, including an update to the discount rates used to determine benefit obligations, of the affected plans. The following table presents certain information and the financial impacts of these actions on the accompanying Consolidated Financial Statements: Action# Number of Number of Weighted rate as of Plan remeasurement date Weighted (Decrease) (1) Decrease to (1) Curtailment (2) Settlement (2) 1 3 ~800 3.65 % January 31, 2018 3.80 % $ (57 ) $ — $ 5 $ — 2 1 ~700 3.29 % January 31, 2018 3.43 % — (7 ) (28 ) — 3 2 ~2,100 3.43 % March 31, 2018 3.60 % 24 — — 167 4 3 ~11,500 3.70 % July 31, 2018 4.39 % (110 ) — — 230 5 1 ~5,500 3.61 % July 31, 2018 4.35 % — (63 ) — (56 ) ~20,600 $ (143 ) $ (70 ) $ (23 ) $ 341 (1) A negative amount indicates a corresponding decrease to Accumulated other comprehensive loss and a positive amount indicates a corresponding increase to Accumulated other comprehensive loss. (2) These amounts represent the accelerated amortization of a portion of the existing prior service cost or benefit for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges (see Note D) on the accompanying Statement of Consolidated Operations. The eight plans affected by the curtailment and settlement actions described above represented 65% of the combined net unfunded status of Alcoa Corporation’s pension and other postretirement benefit plans as of December 31, 2017. In the third quarter and nine-month period of 2018, Alcoa Corporation made a combined $100 and a combined $705, respectively, in unscheduled contributions to several defined benefit pension plans, including a combined $600 to three of the Company’s U.S. defined benefit pension plans and a combined $105 to two of the Company’s Canadian defined benefit pension plans (inclusive of $89 for Action# 3 above). The additional payments to the U.S. plans were discretionary in nature and were funded with $492 in net proceeds from a May 2018 debt issuance (see Note J) and $108 of available cash on hand. The primary purpose for issuing debt to fund a portion of the discretionary contributions to the U.S. plans was to reduce near-term pension funding risk with a fixed-rate, 10-year |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Derivatives and Other Financial Instruments | L. Derivatives and Other Financial Instruments Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Derivatives Alcoa Corporation is exposed to certain risks relating to its ongoing business operations, including financial, market, political, and economic risks. The following discussion provides information regarding Alcoa Corporation’s exposure to the risks of changing commodity prices and foreign currency exchange rates. Alcoa Corporation’s commodity and derivative activities are subject to the management, direction, and control of the Strategic Risk Management Committee (SRMC), which consists of at least three members, including the chief executive officer and the chief financial officer. The remaining member(s) are other officers and/or employees of the Company as the chief executive officer may designate from time to time. Currently, the only other member of the SRMC is Alcoa Corporation’s treasurer. The SRMC meets on a periodic basis to review derivative positions and strategy and reports to the Audit Committee of Alcoa Corporation’s Board of Directors on the scope of its activities. Alcoa Corporation’s aluminum, energy, and foreign exchange contracts are held for purposes other than trading. They are used primarily to mitigate uncertainty and volatility, and to cover underlying exposures. Alcoa Corporation is not involved in trading activities for energy, weather derivatives, or other nonexchange commodity trading activities. Several of Alcoa Corporation’s aluminum, energy, and foreign exchange contracts are classified as Level 1 or Level 2 under the fair value hierarchy. The total fair value of these derivative contracts recorded as assets and liabilities was $1 and $65, respectively, at September 30, 2018 and $44 and $117, respectively, at December 31, 2017. In the 2017 third quarter and nine-month period, Alcoa Corporation recognized a gain of $1 and a loss of $23, respectively, in Other expenses (income), net on the accompanying Statement of Consolidated Operations related to these contracts. Certain of these contracts are designated as either fair value or cash flow hedging instruments. For the contracts designated as cash flow hedges, Alcoa Corporation recognized an unrealized loss of $7 and an unrealized gain of $6 in the 2018 third quarter and nine-month period, respectively, and an unrealized loss of $39 and $64 in the 2017 third quarter and nine-month period, respectively, in Other comprehensive (loss) income. Additionally, Alcoa Corporation reclassified a realized loss of $3 and $10 in the 2018 third quarter and nine-month period, respectively, and $3 and $8 in the 2017 third quarter and nine-month period, respectively, from Accumulated other comprehensive loss to Sales. In addition to the Level 1 and 2 derivative instruments described above, Alcoa Corporation has several derivative instruments classified as Level 3 under the fair value hierarchy. These instruments are composed of (i) embedded aluminum derivatives and an embedded credit derivative related to energy supply contracts and (ii) freestanding financial contracts related to energy purchases made in the spot market, all of which are associated with nine smelters and three refineries. Certain of the embedded aluminum derivatives and financial contracts are designated as cash flow hedging instruments. All of these Level 3 derivative instruments are described below in detail and are enumerated as D1 through D11. The following section describes the valuation methodologies used by Alcoa Corporation to measure its Level 3 derivative instruments at fair value. Derivative instruments classified as Level 3 in the fair value hierarchy represent those in which management has used at least one significant unobservable input in the valuation model. Alcoa Corporation uses a discounted cash flow model to fair value all Level 3 derivative instruments. Where appropriate, the description below includes the key inputs to those models and any significant assumptions. These valuation models are reviewed and tested at least on an annual basis. Inputs in the valuation models for Level 3 derivative instruments are composed of the following: (i) quoted market prices (e.g., aluminum prices on the 10-year 10-year D1 through D5. 10-year D6. D7. LME-linked D8. D9. 30-year 30-year 30-year 30-year Ba/BB-rated (10-year) Ba/BB-rated (30-year) D10 and D11. In January 2017, Alcoa Corporation and the counterparty entered into a new financial contract (D11) to hedge the anticipated power requirements at this smelter for the period from August 2017 through July 2021 and amended the existing financial contract to both reduce the hedged amount of anticipated power requirements and to move up the effective termination date to July 31, 2017. The new financial contract has been designated as a cash flow hedge of future purchases of electricity. Unrealized gains and losses on the new financial contract were recorded in Other comprehensive (loss) income on the accompanying Consolidated Balance Sheet while realized gains and losses were recorded (began in August 2017) in Cost of goods sold as electricity purchases were made in the spot market. The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments: Fair value at September 30, Unobservable input Range ($ in full amounts) Assets: Embedded aluminum derivative (D7) $ — Interrelationship of future aluminum and oil prices Aluminum: $2,056 per metric ton in October 2018 Oil: $83 per barrel in October 2018 Financial contract (D11) 98 Interrelationship of forward energy price and the Consumer Price Index and price of electricity beyond forward curve Electricity: $60.48 per megawatt hour in 2018 to $44.56 per megawatt hour in 2021 Liabilities: Embedded aluminum derivative (D1) 302 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $2,056 per metric ton in 2018 to $2,480 per metric ton in 2027 Electricity: rate of 4 million megawatt hours per year Embedded aluminum derivatives (D3 through D5) 351 Price of aluminum beyond forward curve Aluminum: $2,544 per metric ton in 2029 to $2,588 per metric ton in 2029 (two contracts) and $2,883 per metric ton in 2036 (one contract) Midwest premium: $0.2050 per pound in 2018 to $0.1950 per pound in 2029 (two contracts) and 2036 (one contract) Embedded aluminum derivative (D8) 14 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $2,056 per metric ton in 2018 to $2,070 per metric ton in 2019 Midwest premium: $0.2050 per pound in 2018 to $0.2000 per pound in 2019 Electricity: rate of 2 million megawatt hours per year Embedded aluminum derivative (D2) 13 Interrelationship of LME price to overall energy price Aluminum: $2,177 per metric ton in 2018 to $2,111 per metric ton in 2019 Embedded credit derivative (D9) 18 Estimated spread between the respective 30-year 2.60% (30-year The fair values of Level 3 derivative instruments recorded as assets and liabilities in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives September 30, 2018 December 31, Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Financial contract $ 56 $ 96 Fair value of derivative instruments – noncurrent: Financial contract 42 101 Total derivatives designated as hedging instruments $ 98 $ 197 Total Asset Derivatives $ 98 $ 197 Liability Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivatives $ 93 $ 120 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives 573 992 Total derivatives designated as hedging instruments $ 666 $ 1,112 Derivatives not designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivative $ 14 $ 28 Embedded credit derivative 3 4 Fair value of derivative instruments – noncurrent: Embedded aluminum derivative — 6 Embedded credit derivative 15 23 Total derivatives not designated as hedging instruments $ 32 $ 61 Total Liability Derivatives $ 698 $ 1,173 The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities Third quarter ended September 30, 2018 Financial Embedded aluminum Embedded Opening balance – July 1, 2018 $ 83 $ 644 $ 20 Total gains or losses (realized and unrealized) included in: Sales — (25 ) — Cost of goods sold (11 ) — (1 ) Other expenses, net — (6 ) (1 ) Other comprehensive loss 30 70 — Purchases, sales, issuances, and settlements* — — — Transfers into and/or out of Level 3* — — — Other (4 ) (3 ) — Closing balance – September 30, 2018 $ 98 $ 680 $ 18 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2018: Sales $ — $ — $ — Cost of goods sold — — — Other expenses, net — (6 ) (1 ) * In the 2018 third quarter, 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 Nine months ended September 30, 2018 Financial Embedded aluminum Embedded Opening balance – January 1, 2018 $ 197 $ 1,146 $ 27 Total gains or losses (realized and unrealized) included in: Sales — (79 ) — Cost of goods sold (45 ) — (3 ) Other expenses, net — (12 ) (6 ) Other comprehensive income (45 ) (365 ) — Purchases, sales, issuances, and settlements* — — — Transfers into and/or out of Level 3* — — — Other (9 ) (10 ) — Closing balance – September 30, 2018 $ 98 $ 680 $ 18 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2018: Sales $ — $ — $ — Cost of goods sold — — — Other expenses, net — (12 ) (6 ) * In the 2018 nine-month period, 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. Derivatives Designated As Hedging Instruments – Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, effective on January 1, 2018, the entire amount of unrealized gains or losses on the derivative is reported as a component of other comprehensive income. Prior to January 1, 2018, only the effective portion of unrealized gains or losses on the derivative is reported as a component of other comprehensive income while the ineffective portion of unrealized gains or losses is recognized directly in earnings immediately. On April 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting for hedging activities (see Note B), which included the elimination of the concept of ineffectiveness. Accordingly, there is no longer a requirement to separately measure and report ineffectiveness. In all periods presented, realized gains or losses on the derivative are reclassified from other comprehensive income into earnings in the same period or periods during which the hedged transaction impacts earnings. Additionally, gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized directly in earnings immediately. Alcoa Corporation has five Level 3 embedded aluminum derivatives and one Level 3 financial contract (through November 2016 – see D10 above) that have been designated as cash flow hedges as described below. Additionally, in January 2017, Alcoa Corporation entered into a new financial contract (see D11 above), which was designated as a cash flow hedging instrument and was classified as Level 3 under the fair value hierarchy, that replaced the existing financial contract (see D10 above) in August 2017. Embedded aluminum derivatives (D1 through D5). LME-linked Alcoa Corporation recognized a net unrealized loss of $70 and a net unrealized gain of $365 in the 2018 third quarter and nine-month period, respectively, and a net unrealized loss of $502 and $1,043 in the 2017 third quarter and nine-month period, respectively, in Other comprehensive (loss) income related to these five derivative instruments. Additionally, Alcoa Corporation reclassified a realized loss of $25 and $79 in the 2018 third quarter and nine-month period, respectively, and $29 and $74 in the 2017 third quarter and nine-month period, respectively, from Accumulated other comprehensive loss to Sales. Assuming market rates remain constant with the rates at September 30, 2018, a realized loss of $93 is expected to be recognized in Sales over the next 12 months. There was no ineffectiveness related to these five derivative instruments in the 2017 third quarter and nine-month period. Financial contracts (D10 and D11). In addition, in January 2017, Alcoa Corporation entered into a new financial contract that hedges the anticipated power requirements at this smelter for the period from August 2017 through July 2021 (see D11 above). At September 30, 2018 and December 31, 2017, this financial contract hedges forecasted electricity purchases of 6,967,620 and 8,805,456, respectively, megawatt hours. Alcoa Corporation recognized an unrealized gain of $30 and an unrealized loss of $45 in the 2018 third and nine-month period, respectively, and an unrealized loss of $7 and an unrealized gain of $100 in the 2017 third quarter and nine-month period, respectively, in Other comprehensive (loss) income. Additionally, Alcoa Corporation reclassified a realized gain of $11 and $45 in the 2018 third quarter and nine-month period, respectively, and $12 in both the 2017 third quarter and nine-month period from Accumulated other comprehensive loss to Cost of goods sold. Assuming market rates remain consistent with the rates at September 30, 2018, a realized gain of $56 is expected to be recognized in Cost of goods sold over the next 12 months. The amount of hedge ineffectiveness related to this derivative instrument was not material in both the 2017 third quarter and nine-month period. Derivatives Not Designated As Hedging Instruments Alcoa Corporation has two Level 3 embedded aluminum derivatives (D7 and D8) and one Level 3 embedded credit derivative (D9) that do not qualify for hedge accounting treatment and one Level 3 financial contract for which management elected to discontinue hedge accounting treatment (see D10 above). As such, gains and losses related to the changes in fair value of these instruments are recorded directly in earnings. In the 2018 third quarter and nine-month period, Alcoa Corporation recognized a gain of $7 and $18, respectively, in Other expenses, net, of which a gain of $6 and $12, respectively, related to the embedded aluminum derivatives and a gain of $1 and $6, respectively, related to the embedded credit derivative. In the 2017 third quarter and nine-month period, Alcoa Corporation recognized a loss of $15 and $19, respectively, in Other expenses (income), net, of which a loss of $7 and $15, respectively, related to the embedded aluminum derivatives a gain of $3 (both periods) related to the embedded credit derivative, and a loss of $11 and $7, respectively, related to the financial contract. Material Limitations The disclosures with respect to commodity prices and foreign currency exchange risk do not consider the underlying commitments or anticipated transactions. If the underlying items were included in the analysis, the gains or losses on the futures contracts may be offset. Actual results will be determined by several factors that are not under Alcoa Corporation’s control and could vary significantly from those factors disclosed. Alcoa Corporation is exposed to credit loss in the event of nonperformance by counterparties on the above instruments, as well as credit or performance risk with respect to its hedged customers’ commitments. Alcoa Corporation does not anticipate nonperformance by any of these parties. Contracts are with creditworthy counterparties and are further supported by cash, treasury bills, or irrevocable letters of credit issued by carefully chosen banks. In addition, various master netting arrangements are in place with counterparties to facilitate settlement of gains and losses on these contracts. Other Financial Instruments The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows: September 30, 2018 December 31, 2017 Carrying Fair value Carrying Fair value Cash and cash equivalents $ 1,022 $ 1,022 $ 1,358 $ 1,358 Restricted cash 4 4 7 7 Long-term debt due within one year 4 4 16 16 Long-term debt, less amount due within one year 1,820 1,959 1,388 1,555 The following methods were used to estimate the fair values of other financial instruments: Cash and cash equivalents and Restricted cash. Long-term debt due within one year and Long-term debt, less amount due within one year. non-public |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | M. Income Taxes one-time Based on management’s preliminary analysis of the TCJA, the Company recorded a $22 discrete income tax charge in its Consolidated Financial Statements for the year ended December 31, 2017. This amount was provisional in nature in accordance with guidance issued by the U.S. Securities and Exchange Commission under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act See Note P to the Consolidated Financial Statements in Part II Item 8 of Alcoa Corporation’s Annual Report on Form 10-K In the third quarter of 2018, Alcoa Corporation recorded a charge of $30 (€26) in Provision for income taxes on the accompanying Statement of Consolidated Operations to establish a liability for its 49% share of the estimated loss on an income tax matter in Spain. See “Spain” in the Tax section of Note N for additional information. |
Contingencies and Commitments
Contingencies and Commitments | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | N. Contingencies and Commitments Contingencies Unless specifically described to the contrary, all matters within Note N are the full responsibility of Alcoa Corporation pursuant to the Separation and Distribution Agreement. Additionally, the Separation and Distribution Agreement provides for cross-indemnities between the Company and Arconic for claims subject to indemnification. Litigation Italy 148— In the meantime, as a result of the conclusion of the European Commission Matter in January 2016 (see Note R to the Consolidated Financial Statements in Part II Item 8 of Alcoa Corporation’s Annual Report on Form 10-K In December 2017, through an agreement with the Energy Authority, Alcoa Corporation settled this matter for $18 (€15) (paid in January 2018). Accordingly, the Company recorded a reduction of $22 (€19) (the U.S. dollar amount reflects the effects of foreign currency movements since 2015) to its previously established reserve in Restructuring and other charges on the Statement of Consolidated Operations for the year ended December 31, 2017. In January 2018, subsequent to making the previously referenced payment, Alcoa Corporation and the respective state attorney in Italy filed a joint request with the Regional Administrative Court for Lombardy to have this matter formally dismissed. On October 9, 2018, the court formally dismissed the case and this matter is now closed. Also in December 2017, as part of a separate but related agreement to the above, the Company agreed to transfer ownership of the Portovesme smelter (permanently closed in 2014) to Invitalia, an Italian government agency responsible for managing economic development. Under the provisions of the agreement, the Company will retain the responsibility for environmental-related obligations associated with decommissioning the Portovesme smelter (see below). The agreement further provides that the Company may be relieved of such obligations upon Invitalia exercising an option to receive a cash payment of $23 (€20) from the Company. Additionally, this agreement included a framework for the future settlement of a groundwater remediation project related to the Portovesme site (see Fusina and Portovesme, Italy in Environmental Matters below). In February 2018, the Company completed the transfer of ownership of the Portovesme smelter to Invitalia. The carrying value of the assets related to the Portovesme site were previously written down to zero as a direct result of ParentCo’s decision in 2014 to decommission the facility. In the second quarter of 2018, Invitalia sold the Portovesme smelter to SiderAlloys International S.A., a Switzerland company, which intends to restart the facility. In June 2018, Invitalia gave notice to the Company that it was exercising its option under the December 2017 agreement to receive the cash payment thereby releasing the Company from responsibility of all environmental-related obligations associated with a future decommissioning of the Portovesme smelter. The cash payment will be made in three installments, one in each of 2018 (paid $8 (€7) on June 18), 2019, and 2020. Accordingly, in the 2018 second quarter, Alcoa Corporation recognized a $15 net benefit in Restructuring and other charges (see Note D) on the Company’s Statement of Consolidated Operations, comprised of (i) a $38 reversal of previously accrued asset retirement obligations ($36) and environmental reserves ($2) related to the Company’s former decommissioning plan for the Portovesme smelter, and (ii) a $23 charge to establish a liability for the planned cash payment to Invitalia. Environmental Matters Alcoa Corporation participates in environmental assessments and cleanups at several locations. These include owned or operating facilities and adjoining properties, previously owned or operating facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. A liability is recorded for environmental remediation when a cleanup program becomes probable and the costs can be reasonably estimated. As assessments and cleanups proceed, the liability is adjusted based on progress made in determining the extent of remedial actions and related costs. The liability can change substantially due to factors such as, among others, the nature and extent of contamination, changes in remedial requirements, and technological changes. Alcoa Corporation’s remediation reserve balance was $285 and $294 at September 30, 2018 and December 31, 2017 (of which $37 and $36 was classified as a current liability), respectively, and reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. In the 2018 nine-month period, the remediation reserve was increased by $15. The change to the remediation reserve was due to an increase of $9 related to the former Sherwin location (see below), a reversal of $2 (recorded in Restructuring and other charges) related to the Portovesme location (unrelated to the matter below – see Italy 148 in Litigation above), and a net charge of $8 ($6 and $2 were recorded in Cost of goods sold and Restructuring and other charges, respectively) associated with several sites. Payments related to remediation expenses applied against the reserve were $5 and $19 in the 2018 third quarter and nine-month period, respectively. These amounts include expenditures currently mandated, as well as those not required by any regulatory authority or third party. The reserve also reflects both a decrease of $1 and $6 in the 2018 third quarter and nine-month period, respectively, due to the effects of foreign currency translation and an increase of $1 in the 2018 nine-month period for reclassifications made between this reserve and the Company’s liability for asset retirement obligations. The Separation and Distribution Agreement includes provisions for the assignment or allocation of environmental liabilities between Alcoa Corporation and Arconic, including certain remediation obligations associated with environmental matters. In general, the respective parties are responsible for the environmental matters associated with their operations, and with the properties and other assets assigned to each. Additionally, the Separation and Distribution Agreement lists environmental matters with a shared responsibility between the two companies with an allocation of responsibility and the lead party responsible for management of each matter. For matters assigned to Alcoa Corporation and Arconic under the Separation and Distribution Agreement, the companies have agreed to indemnify each other in whole or in part for environmental liabilities arising from operations prior to the Separation Date. The following description provides details regarding the current status of certain significant reserves related to current or former Alcoa Corporation sites. With the exception of the Fusina, Italy matter, Alcoa Corporation assumed full responsibility of the matters described below. General— Sherwin, TX— Baie Comeau, Quebec, Canada— Fusina and Portovesme, Italy— clean-up For the Fusina site, Trasformazioni has a soil and groundwater remediation project, which was approved by the MOE through a final ministerial decree issued in August 2014. Additionally, under an administrative agreement reached in February 2014 with the MOE, Trasformazioni is required to make annual payments over a 10-year Effective with the Separation Transaction, Arconic retained the portion of Trasformazioni’s obligation related to the Fusina rolling operations. Specifically, under the Separation and Distribution Agreement, Trasformazioni, and with it the Fusina properties, were assigned to Alcoa Corporation. Fusina Rolling S.r.l., entered into a lease agreement for the portion of property that included the rolling operations. Pursuant to the Separation and Distribution Agreement, the liabilities at Fusina described above were allocated between Alcoa Corporation (Trasformazioni) and Arconic (Fusina Rolling S.r.l.). For the Portovesme site, Trasformazioni has a soil remediation project, which was approved by the MOE through a final ministerial decree issued in October 2015. Project work on the soil remediation project commenced in mid-2016 Mosjøen, Norway— East St. Louis, IL— Tax Spain— On July 6, 2018, the National Court denied ParentCo’s appeal of the assessment; however, the decision includes a requirement that Spain’s tax authorities issue a new assessment, which considers available net operating losses of the former Spanish consolidated tax group from prior tax years that can be utilized during the assessed tax years. Spain’s tax authorities will not issue a new assessment until this matter is resolved; however, based on estimated calculations completed by Arconic and Alcoa Corporation (collectively, the “Companies”), the amount of the new assessment, including applicable interest, is expected to be in the range of $25 to $61 (€21 to €53) after consideration of available net operating losses and tax credits. Under the Tax Matters Agreement related to the Separation Transaction, Arconic and Alcoa Corporation are responsible for 51% and 49%, respectively, of the assessed amount in the event of an unfavorable outcome. On July 12, 2018, the Companies sent a letter to the National Court seeking clarification on one part of the decision. A response was received from the National Court on October 1, 2018, resulting in no change to its July 6, 2018 decision. The Companies are preparing a petition for appeal to Spain’s Supreme Court, which must be filed no later than November 13, 2018. Notwithstanding the petition for appeal, based on a review of the bases on which the National Court decided this matter, Alcoa Corporation management no longer believes that the Companies are more likely than not (greater than 50%) to prevail in this matter. Accordingly, in the 2018 third quarter, Alcoa Corporation recorded a charge of $30 (€26) in Provision for income taxes on the accompanying Statement of Consolidated Operations to establish a liability for its 49% share of the estimated loss in this matter, representing management’s best estimate at this time. As indicated above, at a future point in time, the Companies will receive an updated assessment from Spain’s tax authorities, which may result in a change to management’s estimate following further analysis. In January 2017, the National Court issued a decision in favor of the former Spanish consolidated tax group related to a similar assessment for the 2003 through 2005 tax years, effectively making that assessment null and void. Additionally, in August 2017, in lieu of receiving a formal assessment, the Companies reached a settlement with Spain’s tax authorities for the 2010 through 2013 tax years that had been under audit for a similar matter. Alcoa Corporation’s share of this settlement was not material to the Company’s Consolidated Financial Statements. The ultimate outcomes related to the 2003 through 2005 and the 2010 through 2013 tax years are not indicative of the potential ultimate outcome of the assessment for the 2006 through 2009 tax years due to procedural differences. Additionally, it is possible that the Companies may receive similar assessments for tax years subsequent to 2013; however, management does not expect any such assessment, if received, to be material to Alcoa Corporation’s Consolidated Financial Statements. Brazil (AWAB)— Other Reynolds— In 2000, ParentCo acquired Reynolds Metals Company (“Reynolds,” a subsidiary of Alcoa Corporation), which included an alumina refinery in Gregory, Texas. As a condition of the Reynolds acquisition, ParentCo was required to divest this alumina refinery. In accordance with the terms of the divestiture in 2000, ParentCo agreed to retain responsibility for certain environmental obligations (see Sherwin, TX in Environmental Matters above) and assigned to the buyer an Energy Services Agreement (“ESA”) with Gregory Power Partners (“Gregory Power”) for purchase of steam and electricity by the refinery. Through the bankruptcy proceedings, the owner of Sherwin exercised its right under the U.S. Bankruptcy Code to reject the agreement from 2000 containing the previously mentioned retained responsibility, which had the effect of terminating all rights and responsibilities of the parties to the agreement. As a result of Sherwin’s initial bankruptcy filing, separate legal actions were initiated against Reynolds by Gregory Power and Sherwin as described below. Gregory Power: pre-trial Sherwin: pre-conditioned On June 5, 2018, the transaction between Sherwin and Reynolds was completed. Under the agreement with Sherwin, in exchange for assuming full responsibility for the environmental-related liabilities (see below related to the Company’s existing reserve) associated with the Copano facility, Reynolds assumed ownership of the land that comprises the Copano facility, as well as land that serves as a buffer around the Copano facility and other related assets. A third-party appraisal estimated the fair value of the land and other assets to be $16. Under the agreement with TCEQ, a portion of the Copano facility must be closed within 10 years and the remaining portion must be closed within 30 years, both timeframes began on the effective date. Also, Reynolds is required to install upgrades to certain dust control systems and repair certain structures and drainage systems at the Copano facility, and prepare and submit to TCEQ a preliminary groundwater assessment report and a drinking water survey report related to the Copano facility within 180 days of the effective date. Accordingly, the Company recognized $16 in properties, plants, and equipment, $9 in environmental remediation liabilities, and $7 in other related liabilities. Additionally, the Company paid $12 into a trust managed by the state of Texas as financial assurance of the Company’s performance in completing the required obligations. This amount will be returned to the Company upon satisfactory completion of the future closure of the Copano facility in accordance with all applicable laws and regulations. On June 7, 2018, Sherwin filed a notice of dismissal in the suit against Reynolds; the dismissal was immediately effective as no court order was required. At the time the agreements were signed by all parties, the Company had a reserve of $29 for its proportionate share of environmental-related matters at both the Sherwin refinery site and the Copano facility based on the terms of the divestiture of the Sherwin refinery in 2000 (see Sherwin, TX in Environmental Matters above). While Reynolds no longer has any responsibility for environmental-related matters at the Sherwin refinery site, it assumed additional responsibility for environmental-related matters at the Copano facility ($9 – see above). In management’s judgment, the $38 reserve as of September 30, 2018 is sufficient to satisfy the Company’s revised responsibilities and obligations under the settlement agreements. Upon changes in facts or circumstances, a change to the reserve may be required. Suralco— In February 2018, the arbitration hearing was held before a three-person panel under the rules of the International Chamber of Commerce. The panel issued its decision on May 29, 2018, finding in favor of Boskalis on two claims and against Boskalis on two claims. For the two claims on which Boskalis prevailed, the panel awarded Boskalis $29, including prejudgment interest of $3. The award is final and cannot be appealed. Accordingly, in the 2018 second quarter, Alcoa Corporation recorded a charge of $29 ($17 after noncontrolling interest), including $26 in Cost of goods sold and $3 in Interest expense on the Company’s Statement of Consolidated Operations. On June 6, 2018, the Company made the $29 cash payment to Boskalis closing this matter. The claim that represented the majority of the arbitration award centered around a contract provision requiring Suralco to make a “true up” payment at the end of the contract in the event that Suralco was unable to receive delivery of the full contract quantity, thus allowing Boskalis to recover its fixed production costs and a suitable return on its investment. While Suralco argued that all required deliveries had been made during the amended contract term and that no “true up” payment was required because a “true up” would amount to a double payment for bauxite deliveries after the initial contract term, Boskalis argued that the deliveries were not made within the original contract term and thus, a “true up” payment was required. On the basis of its analysis of the facts and applicable law, management concluded that the likelihood of an unfavorable decision on Boskalis’ claims was remote (25% or less). Throughout the course of the proceeding, and even after the conclusion of the hearing, management’s judgment of the likelihood of an unfavorable outcome remained the same. General In addition to the matters discussed above, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against Alcoa Corporation, including those pertaining to environmental, product liability, safety and health, contract dispute, and tax matters, and other actions and claims arising out of the normal course of business. While the amounts claimed in these other matters may be substantial, the ultimate liability is not readily determinable because of the considerable uncertainties that exist. Accordingly, it is possible that the Company’s liquidity or results of operations in a particular period could be materially affected by one or more of these other matters. However, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on the financial position of the Company. Commitments Investments Alcoa Corporation has an investment in a joint venture related to the ownership and operation of an integrated aluminum complex (bauxite mine, alumina refinery, aluminum smelter, and rolling mill) in Saudi Arabia. The joint venture is owned 74.9% by the Saudi Arabian Mining Company (known as “Ma’aden”) and 25.1% by Alcoa Corporation and consists of three separate companies as follows: one each for the mine and refinery, the smelter, and the rolling mill. Alcoa Corporation accounts for its investment in the joint venture under the equity method. As of September 30, 2018 and December 31, 2017, the carrying value of Alcoa Corporation’s investment in this joint venture was $892 and $887, respectively. Capital investment in the project is expected to total approximately $10,800 (SAR 40.5 billion) and has been funded through a combination of equity contributions by the joint venture partners and project financing obtained by the joint venture companies, which has been partially guaranteed by both partners (see below). Both the equity contributions and the guarantees of the project financing are based on the joint venture’s partners’ ownership interests. Originally, it was estimated that Alcoa Corporation’s total equity contribution in the joint venture related to the capital investment in the project would be approximately $1,100, of which Alcoa Corporation has contributed $982. Based on changes to both the project’s capital investment and equity and debt structure from the initial plans, the estimated $1,100 equity contribution may be reduced. Separate from the capital investment in the project, Alcoa Corporation contributed $66 (Ma’aden contributed $199) to the joint venture in 2017 for short-term funding purposes in accordance with the terms of the joint venture companies’ financing arrangements. Both partners may be required to make such additional contributions in future periods. The rolling mill company has project financing totaling $1,179 (reflects principal repayments made through September 30, 2018), of which $296 represents Alcoa Corporation’s 25.1% interest in the rolling mill company. Alcoa Corporation has issued guarantees (see below) to the lenders in the event of default on the debt service requirements by the rolling mill company through 2018 and 2021 (Ma’aden issued similar guarantees related to its 74.9% interest). Alcoa Corporation’s guarantees for the rolling mill cover total remaining debt service requirements of $50 in principal and up to a maximum of approximately $10 in interest per year (based on projected interest rates). Previously, Alcoa Corporation issued similar guarantees related to the project financing of both the smelting company and the mining and refining company. In December 2017 and July 2018, the smelting company and the mining and refining company, respectively, refinanced and/or amended all of their existing outstanding debt. The guarantees that were previously required of the Company related to both the smelting company and the mining and refining were effectively terminated. At September 30, 2018 and December 31, 2017, the combined fair value of the guarantees was $1 and $3, respectively, which was included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet. As a result of the Separation Transaction, the various lenders to the joint venture companies required Arconic to maintain joint and several guarantees with Alcoa Corporation. In the event of default by any of the joint venture companies, the lenders would make a claim against both Alcoa Corporation and Arconic. Accordingly, Alcoa Corporation would perform under its guarantee; however, if the Company failed to perform, Arconic would be required to perform under its own guarantee. Arconic would then subsequently seek indemnification from Alcoa Corporation under the terms of the Separation and Distribution Agreement. |
Other Expenses (Income), Net
Other Expenses (Income), Net | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expenses (Income), Net | O. Other Expenses (Income), Net Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Equity (income) loss $ (1 ) $ 13 $ (2 ) $ 23 Foreign currency (gains) losses, net (22 ) 1 (49 ) 6 Net loss (gain) from asset sales 3 1 — (115 ) Net (gain) loss on mark-to-market (8 ) 6 (19 ) 22 Non-service 32 21 109 64 Other (2 ) 6 (7 ) (3 ) $ 2 $ 48 $ 32 $ (3 ) In the 2017 nine-month period, Net gain from asset sales included a $120 gain related to the sale of certain energy operations in the United States. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | P. Subsequent Events On October 17, 2018, Alcoa Corporation announced that its Board of Directors authorized a common stock repurchase program under which the Company may purchase up to $200 million of its outstanding common stock, depending on cash availability, market conditions, and other factors. Repurchases under the program may be made using a variety of methods, which may include open market purchases, privately negotiated transactions, or pursuant to a Rule 10b5-1 On October 31, 2018, Alcoa Corporation initiated a formal 30-day |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | A. Basis of Presentation year-end 10-Q 10-K References in these Notes to “ParentCo” refer to Alcoa Inc., a Pennsylvania corporation, and its consolidated subsidiaries (through October 31, 2016, at which time was renamed Arconic Inc. (Arconic)). On November 1, 2016 (the “Separation Date”), ParentCo separated into two standalone, publicly-traded companies, Alcoa Corporation and Arconic (the “Separation Transaction”). In connection with the Separation Transaction, as of October 31, 2016, the Company and Arconic entered into several agreements to effect the Separation Transaction, including a Separation and Distribution Agreement and a Tax Matters Agreement. See Note A to the Consolidated Financial Statements in Part II Item 8 of Alcoa Corporation’s Annual Report on Form 10-K |
Principles of Consolidation | Principles of Consolidation. AWAC is an unincorporated global joint venture between Alcoa Corporation and Alumina Limited and consists of several affiliated operating entities, which own, or have an interest in, or operate the bauxite mines and alumina refineries within Alcoa Corporation’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and a portion of the São Luís refinery, all in Brazil) and the Portland smelter in Australia. Alcoa Corporation owns 60% and Alumina Limited owns 40% of these individual entities, which are consolidated by the Company for financial reporting purposes and include Alcoa of Australia Limited, Alcoa World Alumina LLC (AWA), and Alcoa World Alumina Brasil Ltda. (AWAB). Alumina Limited’s interest in the equity of such entities is reflected as Noncontrolling interest on the accompanying Consolidated Balance Sheet. |
Revenue Recognition | The Company recognizes revenue when it satisfies a performance obligation(s) in accordance with the provisions of a customer order or contract. This is achieved when control of the product has been transferred to the customer, which is generally determined when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (commercial delivery truck, train, or vessel). Accordingly, except for the sale of electricity, the sale of Alcoa Corporation’s products to its customers represent single performance obligations for which revenue is recognized at a point in time. Based on the foregoing, no significant judgment is required to determine when control of a product has been transferred to a customer. The Company measures revenue based on the consideration it expects to be entitled to receive in exchange for its products. The standard terms and conditions of customer orders and contracts include general rights of return and product warranty provisions related to nonconforming or “out-of-spec” The Company considers shipping and handling activities as costs to fulfill the promise to transfer the related products. As a result, customer payments of shipping and handling costs are recorded as a component of revenue. Also, Alcoa Corporation may collect various taxes (e.g., sales, use, value-added, excise) from its customers related to the sale of its products and remit such amounts to governmental authorities. As such, amounts paid to the Company for these types of taxes are excluded from the transaction price used to determine the proper measurement of revenue |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Guidance (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of Cash and cash equivalents and Restricted cash reported in the accompanying Consolidated Balance Sheet that sum to the Cash and cash equivalents and restricted cash at both the beginning of year and end of period presented on the accompanying Statement of Consolidated Cash Flows for the nine months ended September 30, 2018: September 30, 2018 December 31, 2017 Cash and cash equivalents $ 1,022 $ 1,358 Restricted cash* 4 7 $ 1,026 $ 1,365 * These amounts are reported in Prepaid expenses and other current assets on the accompanying Consolidated Balance Sheet. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Product Division Information | The following table represents the general commercial profile of the Company’s Bauxite, Alumina, Primary aluminum, and Flat-rolled aluminum product divisions (see text below table for Energy): Product division Pricing components Shipping terms (4) Payment terms (5) Bauxite Negotiated FOB/CIF LC Sight Alumina: Smelter-grade API (1) FOB LC Sight/CAD/Net 30 days Non-metallurgical Negotiated FOB/CIF Net 30 days Primary aluminum: Common alloy ingot LME + Regional premium (2) DAP/CIF Net 30 to 45 days Value-add LME + Regional premium + Product premium (2) DAP/CIF Net 30 to 45 days Flat-rolled aluminum Metal + Conversion (3) DAP Negotiated (1) API (Alumina Price Index) is a pricing mechanism that is calculated by the Company based on the weighted average of a prior month’s daily spot prices published by the following three indices: CRU Metallurgical Grade Alumina Price; Platts Metals Daily Alumina PAX Price; and Metal Bulletin Non-Ferrous (2) LME (London Metal Exchange) is a globally recognized exchange for commodity trading, including aluminum. The LME pricing component represents the underlying base metal component, based on quoted prices for aluminum on the exchange. The regional premium represents the incremental price over the base LME component that is associated with the physical delivery of metal to a particular region (e.g., the Midwest premium for metal sold in the United States). The product premium represents the incremental price for receiving physical metal in a particular shape (e.g., billet, rod, slab, etc.) or alloy. (3) Metal represents the underlying base metal component plus a regional premium (see footnote 2). Conversion represents the incremental price over the metal price component that is associated with converting primary or scrap aluminum into sheet. (4) CIF (cost, insurance, and freight) means that the Company pays for these items until the product reaches the buyer’s designated destination point related to transportation by vessel. DAP (delivered at place) means the same as CIF related to all methods of transportation. FOB (free on board) means that the Company pays for costs, insurance, and freight until the product reaches the seller’s designated shipping point. (5) The net number of days means that the customer is required to remit payment to the Company for the invoice amount within the designated number of days. LC Sight is a letter of credit that is payable immediately (usually within five to ten business days) after a seller meets the requirements of the letter of credit (i.e. shipping documents that evidence the seller performed its obligations as agreed to with a buyer). CAD (cash against documents) is a payment arrangement in which a seller instructs a bank to provide shipping and title documents to the buyer at the time the buyer pays in full the accompanying bill of exchange. |
Schedule of Revenue by Product Division | The following table details Alcoa Corporation’s revenue by product division: Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Primary aluminum $ 1,658 $ 1,608 $ 5,176 $ 4,458 Alumina 1,098 710 3,079 2,187 Flat-rolled aluminum 472 410 1,417 1,286 Energy 115 157 261 340 Bauxite 63 104 179 254 Other* (16 ) (25 ) (53 ) (47 ) $ 3,390 $ 2,964 $ 10,059 $ 8,478 * Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum (see Note L). |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges by Reportable Segments, Pretax | Alcoa Corporation does not include Restructuring and other charges in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Bauxite $ 1 $ 1 $ 1 $ 1 Alumina 1 3 3 2 Aluminum 2 7 86 34 Segment total 4 11 90 37 Corporate 173 (21 ) 299 (25 ) Total restructuring and other charges $ 177 $ (10 ) $ 389 $ 12 |
Activity and Reserve Balances for Restructuring Charges | Activity and reserve balances for restructuring charges were as follows: Layoff costs Other costs Total Reserve balances at December 31, 2016 $ 38 $ 28 $ 66 2017: Cash payments (30 ) (43 ) (73 ) Restructuring charges 23 67 90 Other* (20 ) (18 ) (38 ) Reserve balances at December 31, 2017 11 34 45 2018: Cash payments (7 ) (92 ) (99 ) Restructuring charges 1 102 103 Other* (1 ) (7 ) (8 ) Reserve balances at September 30, 2018 $ 4 $ 37 $ 41 * Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In the 2018 nine-month period, Other for Other costs also included a reclassification of the following restructuring charges: $1 in asset retirement and $2 in environmental obligations, as these liabilities were included in Alcoa Corporation’s separate reserves for asset retirement obligations and environmental remediation. In 2017, Other for Layoff costs also included a reclassification of $8 in pension benefits costs, as these obligations were included in Alcoa Corporation’s separate liability for pension benefits obligations. Additionally in 2017, Other for Other costs also included a reclassification of the following restructuring charges: $10 in asset retirement and $8 in environmental obligations, as these liabilities were included in Alcoa Corporation’s separate reserves for asset retirement obligations and environmental remediation. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results,Capital Expenditures and Assets of Alcoa's Reportable Segments | The operating results of Alcoa Corporation’s reportable segments were as follows (differences between segment totals and consolidated amounts are in Corporate): Bauxite Alumina Aluminum Total Third quarter ended September 30, 2018 Sales: Third-party sales $ 67 $ 1,101 $ 2,198 $ 3,366 Intersegment sales 224 544 6 774 Total sales $ 291 $ 1,645 $ 2,204 $ 4,140 Adjusted EBITDA $ 106 $ 660 $ 73 $ 839 Supplemental information: Depreciation, depletion, and amortization $ 27 $ 48 $ 91 $ 166 Equity income (loss) — 10 (5 ) 5 Third quarter ended September 30, 2017 Sales: Third-party sales $ 104 $ 713 $ 2,090 $ 2,907 Intersegment sales 221 398 9 628 Total sales $ 325 $ 1,111 $ 2,099 $ 3,535 Adjusted EBITDA $ 112 $ 203 $ 315 $ 630 Supplemental information: Depreciation, depletion, and amortization $ 24 $ 53 $ 106 $ 183 Equity loss — (5 ) (7 ) (12 ) Bauxite Alumina Aluminum Total Nine months ended September 30, 2018 Sales: Third-party sales $ 191 $ 3,083 $ 6,722 $ 9,996 Intersegment sales 699 1,534 14 2,247 Total sales $ 890 $ 4,617 $ 6,736 $ 12,243 Adjusted EBITDA $ 316 $ 1,690 $ 457 $ 2,463 Supplemental information: Depreciation, depletion, and amortization $ 83 $ 150 $ 305 $ 538 Equity income (loss) — 23 (13 ) 10 Nine months ended September 30, 2017 Sales: Third-party sales $ 254 $ 2,196 $ 5,884 $ 8,334 Intersegment sales 648 1,143 16 1,807 Total sales $ 902 $ 3,339 $ 5,900 $ 10,141 Adjusted EBITDA $ 319 $ 727 $ 766 $ 1,812 Supplemental information: Depreciation, depletion, and amortization $ 61 $ 155 $ 315 $ 531 Equity loss — (10 ) (11 ) (21 ) |
Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alcoa Corporation | The following table reconciles total segment Adjusted EBITDA to consolidated net (loss) income attributable to Alcoa Corporation: Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Total segment Adjusted EBITDA $ 839 $ 630 $ 2,463 $ 1,812 Unallocated amounts: Transformation (1),(2) 1 (11 ) (2 ) (59 ) Corporate inventory accounting (1),(3) (17 ) (9 ) (18 ) (12 ) Corporate expenses (4) (22 ) (33 ) (75 ) (100 ) Provision for depreciation, depletion, and amortization (173 ) (194 ) (559 ) (563 ) Restructuring and other charges (D) (177 ) 10 (389 ) (12 ) Interest expense (33 ) (26 ) (91 ) (77 ) Other (expenses) income, net (O) (2 ) (48 ) (32 ) 3 Other (1),(5) (10 ) (31 ) (69 ) (49 ) Consolidated income before income taxes 406 288 1,228 943 Provision for income taxes (251 ) (119 ) (569 ) (328 ) Net income attributable to noncontrolling interest (196 ) (56 ) (475 ) (202 ) Consolidated net (loss) income attributable to Alcoa Corporation $ (41 ) $ 113 $ 184 $ 413 (1) Effective in the first quarter of 2018, management elected to change the presentation of certain line items in the reconciliation of total segment Adjusted EBITDA to consolidated net (loss) income attributable to Alcoa Corporation to provide additional transparency to the nature of these reconciling items. Accordingly, Transformation (see footnote 2), which was previously reported within Other, is presented as a separate line item. Additionally, Impact of LIFO (last in, first out) and Metal price lag, which were previously reported as separate line items, are now combined and reported in a new line item labeled Corporate inventory accounting (see footnote 3). Also, the impact of intersegment profit eliminations, which was previously reported within Other, is reported in the new Corporate inventory accounting line item. The applicable information for all prior periods presented was recast to reflect these changes. (2) Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. (3) Corporate inventory accounting is composed of the impacts of LIFO inventory accounting, metal price lag, and intersegment profit eliminations. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by Alcoa Corporation’s rolled aluminum operations. In general, when the price of metal increases, metal price lag is favorable, and when the price of metal decreases, metal price lag is unfavorable. (4) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center. (5) Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on Alcoa Corporation’s Statement of Consolidated Operations that are not included in the Adjusted EBITDA of the reportable segments. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders | The information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (shares in millions): Third quarter ended Nine months ended September 30, 2018 2017 2018 2017 Net (loss) income attributable to Alcoa Corporation $ (41 ) $ 113 $ 184 $ 413 Average shares outstanding – basic 186 185 186 184 Effect of dilutive securities: Stock options — 1 1 1 Stock and performance awards — 1 2 2 Average shares outstanding – diluted 186 187 189 187 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component | The following table details the activity of the three components that comprise Accumulated other comprehensive loss for both Alcoa Corporation’s shareholders and Noncontrolling interest: Alcoa Corporation Noncontrolling interest Third quarter ended September 30, Third quarter ended September 30, 2018 2017 2018 2017 Pension and other postretirement benefits (K) Balance at beginning of period $ (2,502 ) $ (2,184 ) $ (44 ) $ (37 ) Other comprehensive income: Unrecognized net actuarial loss and prior service cost/benefit 174 (6 ) 4 6 Tax (expense) benefit (1 ) 2 (1 ) (2 ) Total Other comprehensive income (loss) before reclassifications, net of tax 173 (4 ) 3 4 Amortization of net actuarial loss and prior service cost/benefit (1) 227 50 1 1 Tax expense (2) (2 ) (2 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 225 48 1 1 Total Other comprehensive income 398 44 4 5 Balance at end of period $ (2,104 ) $ (2,140 ) $ (40 ) $ (32 ) Foreign currency translation Balance at beginning of period $ (1,911 ) $ (1,515 ) $ (746 ) $ (600 ) Other comprehensive (loss) income (3) (142 ) 141 (54 ) 44 Balance at end of period $ (2,053 ) $ (1,374 ) $ (800 ) $ (556 ) Cash flow hedges (L) Balance at beginning of period $ (554 ) $ (104 ) $ 21 $ 63 Other comprehensive (loss) income: Net change from periodic revaluations (60 ) (545 ) 12 (2 ) Tax benefit (expense) 10 109 (4 ) 1 Total Other comprehensive (loss) income before reclassifications, net of tax (50 ) (436 ) 8 (1 ) Net amount reclassified to earnings: Aluminum contracts (4) 26 33 — — Financial contracts (5) (6 ) (8 ) (4 ) (5 ) Foreign exchange contracts (4) 3 — — — Sub-total 23 25 (4 ) (5 ) Tax (expense) benefit (2) (2 ) (4 ) 1 1 Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax (6) 21 21 (3 ) (4 ) Total Other comprehensive (loss) income (29 ) (415 ) 5 (5 ) Balance at end of period $ (583 ) $ (519 ) $ 26 $ 58 Alcoa Corporation Noncontrolling interest Nine months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Pension and other postretirement benefits (K) Balance at beginning of period $ (2,786 ) $ (2,330 ) $ (47 ) $ (56 ) Other comprehensive income: Unrecognized net actuarial loss and prior service cost/benefit 250 42 7 24 Tax (expense) benefit (3 ) 5 (2 ) (2 ) Total Other comprehensive income before reclassifications, net of tax 247 47 5 22 Amortization of net actuarial loss and prior service cost/benefit (1) 487 149 2 2 Tax expense (2) (52 ) (6 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 435 143 2 2 Total Other comprehensive income 682 190 7 24 Balance at end of period $ (2,104 ) $ (2,140 ) $ (40 ) $ (32 ) Foreign currency translation Balance at beginning of period $ (1,467 ) $ (1,655 ) $ (581 ) $ (677 ) Other comprehensive (loss) income (3) (586 ) 281 (219 ) 121 Balance at end of period $ (2,053 ) $ (1,374 ) $ (800 ) $ (556 ) Cash flow hedges (L) Balance at beginning of period $ (929 ) $ 210 $ 51 $ 1 Other comprehensive income (loss): Net change from periodic revaluations 344 (975 ) (18 ) 88 Tax (expense) benefit (58 ) 186 5 (26 ) Total Other comprehensive income (loss) before reclassifications, net of tax 286 (789 ) (13 ) 62 Net amount reclassified to earnings: Aluminum contracts (4) 87 82 — — Financial contracts (5) (26 ) (11 ) (17 ) (7 ) Foreign exchange contracts (4) 2 — — — Sub-total 63 71 (17 ) (7 ) Tax (expense) benefit (2) (3 ) (11 ) 5 2 Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax (6) 60 60 (12 ) (5 ) Total Other comprehensive income (loss) 346 (729 ) (25 ) 57 Balance at end of period $ (583 ) $ (519 ) $ 26 $ 58 (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note K). For the third quarter ended and nine months ended September 30, 2018, the amounts for Alcoa Corporation include $175 (net) and $319 (net), respectively, and for Noncontrolling interest include $1 (both periods) related to settlements and/or curtailments of certain pension and other postretirement employee benefits (see Note K). (2) These amounts were reported in Provision for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings. (4) These amounts were reported in Sales on the accompanying Statement of Consolidated Operations. (5) These amounts were reported in Cost of goods sold on the accompanying Statement of Consolidated Operations. (6) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 5. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Unaudited Financial Information for Alcoa Corporation's Equity Investments | A summary of unaudited financial information for Alcoa Corporation’s equity investments is as follows (amounts represent 100% of investee financial information): Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Sales $ 1,343 $ 979 $ 3,963 $ 2,853 Cost of goods sold 1,062 792 3,100 2,186 Net income 46 55 143 97 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | September 30, 2018 December 31, 2017 Finished goods $ 339 $ 296 Work-in-process 339 258 Bauxite and alumina 619 585 Purchased raw materials 550 473 Operating supplies 145 147 LIFO reserve (326 ) (306 ) $ 1,666 $ 1,453 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost were as follows: Third quarter ended September 30, Nine months ended September 30, Pension benefits 2018 2017 2018 2017 Service cost $ 13 $ 18 $ 41 $ 53 Interest cost (1) 56 62 170 183 Expected return on plan assets (1) (84 ) (101 ) (256 ) (298 ) Recognized net actuarial loss (1) 47 47 154 139 Amortization of prior service cost (1) 2 2 6 6 Settlements (2) 232 — 399 3 Curtailments (2) — — 5 — Special termination benefits (2) — 3 — 3 Net periodic benefit cost $ 266 $ 31 $ 519 $ 89 (1) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Notes B and O). (2) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). Third quarter ended September 30, Nine months ended September 30, Other postretirement benefits 2018 2017 2018 2017 Service cost $ 2 $ 2 $ 4 $ 4 Interest cost (1) 8 9 26 28 Recognized net actuarial loss (1) 3 3 10 10 Amortization of prior service benefit (1) — (1 ) (1 ) (4 ) Settlements (2) (56 ) — (56 ) — Curtailments (2) — – (28 ) – Net periodic benefit cost $ (43 ) $ 13 $ (45 ) $ 38 (1) These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Notes B and O). (2) These amounts were reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D). |
Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans | The following table presents certain information and the financial impacts of these actions on the accompanying Consolidated Financial Statements: Action# Number of Number of Weighted rate as of Plan remeasurement date Weighted (Decrease) (1) Decrease to (1) Curtailment (2) Settlement (2) 1 3 ~800 3.65 % January 31, 2018 3.80 % $ (57 ) $ — $ 5 $ — 2 1 ~700 3.29 % January 31, 2018 3.43 % — (7 ) (28 ) — 3 2 ~2,100 3.43 % March 31, 2018 3.60 % 24 — — 167 4 3 ~11,500 3.70 % July 31, 2018 4.39 % (110 ) — — 230 5 1 ~5,500 3.61 % July 31, 2018 4.35 % — (63 ) — (56 ) ~20,600 $ (143 ) $ (70 ) $ (23 ) $ 341 (1) A negative amount indicates a corresponding decrease to Accumulated other comprehensive loss and a positive amount indicates a corresponding increase to Accumulated other comprehensive loss. (2) These amounts represent the accelerated amortization of a portion of the existing prior service cost or benefit for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges (see Note D) on the accompanying Statement of Consolidated Operations. |
Derivatives and Other Financi_2
Derivatives and Other Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Quantitative Information for Level 3 Derivative Contracts | The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments: Fair value at September 30, Unobservable input Range ($ in full amounts) Assets: Embedded aluminum derivative (D7) $ — Interrelationship of future aluminum and oil prices Aluminum: $2,056 per metric ton in October 2018 Oil: $83 per barrel in October 2018 Financial contract (D11) 98 Interrelationship of forward energy price and the Consumer Price Index and price of electricity beyond forward curve Electricity: $60.48 per megawatt hour in 2018 to $44.56 per megawatt hour in 2021 Liabilities: Embedded aluminum derivative (D1) 302 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $2,056 per metric ton in 2018 to $2,480 per metric ton in 2027 Electricity: rate of 4 million megawatt hours per year Embedded aluminum derivatives (D3 through D5) 351 Price of aluminum beyond forward curve Aluminum: $2,544 per metric ton in 2029 to $2,588 per metric ton in 2029 (two contracts) and $2,883 per metric ton in 2036 (one contract) Midwest premium: $0.2050 per pound in 2018 to $0.1950 per pound in 2029 (two contracts) and 2036 (one contract) Embedded aluminum derivative (D8) 14 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $2,056 per metric ton in 2018 to $2,070 per metric ton in 2019 Midwest premium: $0.2050 per pound in 2018 to $0.2000 per pound in 2019 Electricity: rate of 2 million megawatt hours per year Embedded aluminum derivative (D2) 13 Interrelationship of LME price to overall energy price Aluminum: $2,177 per metric ton in 2018 to $2,111 per metric ton in 2019 Embedded credit derivative (D9) 18 Estimated spread between the respective 30-year 2.60% (30-year |
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 September 30, 2018 December 31, Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Financial contract $ 56 $ 96 Fair value of derivative instruments – noncurrent: Financial contract 42 101 Total derivatives designated as hedging instruments $ 98 $ 197 Total Asset Derivatives $ 98 $ 197 Liability Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivatives $ 93 $ 120 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives 573 992 Total derivatives designated as hedging instruments $ 666 $ 1,112 Derivatives not designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivative $ 14 $ 28 Embedded credit derivative 3 4 Fair value of derivative instruments – noncurrent: Embedded aluminum derivative — 6 Embedded credit derivative 15 23 Total derivatives not designated as hedging instruments $ 32 $ 61 Total Liability Derivatives $ 698 $ 1,173 |
Schedule of Reconciliation of Activity for Derivative Contracts | The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities Third quarter ended September 30, 2018 Financial Embedded aluminum Embedded Opening balance – July 1, 2018 $ 83 $ 644 $ 20 Total gains or losses (realized and unrealized) included in: Sales — (25 ) — Cost of goods sold (11 ) — (1 ) Other expenses, net — (6 ) (1 ) Other comprehensive loss 30 70 — Purchases, sales, issuances, and settlements* — — — Transfers into and/or out of Level 3* — — — Other (4 ) (3 ) — Closing balance – September 30, 2018 $ 98 $ 680 $ 18 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2018: Sales $ — $ — $ — Cost of goods sold — — — Other expenses, net — (6 ) (1 ) * In the 2018 third quarter, 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 Nine months ended September 30, 2018 Financial Embedded aluminum Embedded Opening balance – January 1, 2018 $ 197 $ 1,146 $ 27 Total gains or losses (realized and unrealized) included in: Sales — (79 ) — Cost of goods sold (45 ) — (3 ) Other expenses, net — (12 ) (6 ) Other comprehensive income (45 ) (365 ) — Purchases, sales, issuances, and settlements* — — — Transfers into and/or out of Level 3* — — — Other (9 ) (10 ) — Closing balance – September 30, 2018 $ 98 $ 680 $ 18 Change in unrealized gains or losses included in earnings for derivative instruments held at September 30, 2018: Sales $ — $ — $ — Cost of goods sold — — — Other expenses, net — (12 ) (6 ) * In the 2018 nine-month period, 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. |
Schedule of Carrying Values and Fair Values of Other Financial Instruments | The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows: September 30, 2018 December 31, 2017 Carrying Fair value Carrying Fair value Cash and cash equivalents $ 1,022 $ 1,022 $ 1,358 $ 1,358 Restricted cash 4 4 7 7 Long-term debt due within one year 4 4 16 16 Long-term debt, less amount due within one year 1,820 1,959 1,388 1,555 |
Other Expenses (Income), Net (T
Other Expenses (Income), Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expenses (Income), Net | Third quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Equity (income) loss $ (1 ) $ 13 $ (2 ) $ 23 Foreign currency (gains) losses, net (22 ) 1 (49 ) 6 Net loss (gain) from asset sales 3 1 — (115 ) Net (gain) loss on mark-to-market (8 ) 6 (19 ) 22 Non-service 32 21 109 64 Other (2 ) 6 (7 ) (3 ) $ 2 $ 48 $ 32 $ (3 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Sep. 30, 2018 |
Alumina Limited [Member] | |
Basis Of Presentation [Line Items] | |
Non-controlling interest, ownership percentage | 40.00% |
Alcoa Corporation [Member] | |
Basis Of Presentation [Line Items] | |
Ownership interest percentage | 60.00% |
Recently Adopted and Recently_3
Recently Adopted and Recently Issued Accounting Guidance - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jan. 01, 2018 | Jan. 01, 2017 | |
Recently Issued Accounting Standards [Line Items] | |||||||
Restricted cash | $ 4 | $ 4 | $ 7 | ||||
Net change in cash and cash equivalents and restricted cash | (339) | $ 268 | |||||
Cost of goods sold | 2,534 | $ 2,340 | 7,547 | 6,652 | |||
Selling, general administrative, and other expenses | 58 | 70 | 189 | 211 | |||
Other expenses (income), net | 2 | (6) | $ 7 | 3 | |||
Corporate income tax rate | 21.00% | 35.00% | |||||
Right of use asset and lease liability, estimated maximum percentage impact on statement of financial position | 5.00% | ||||||
Accounting Standards Update 2016-18 [Member] | |||||||
Recently Issued Accounting Standards [Line Items] | |||||||
Restricted cash | 4 | 8 | $ 4 | 8 | $ 7 | $ 6 | |
Net change in cash and cash equivalents and restricted cash | 2 | ||||||
Accounting Standards Update 2017-07 [Member] | |||||||
Recently Issued Accounting Standards [Line Items] | |||||||
Non-service cost components in other expenses, net | $ 32 | 109 | |||||
Cost of goods sold | 21 | 61 | |||||
Selling, general administrative, and other expenses | 3 | ||||||
Other expenses (income), net | $ 21 | $ 64 | |||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||||
Recently Issued Accounting Standards [Line Items] | |||||||
Reclassification effect | $ 350 |
Recently Adopted and Recently_4
Recently Adopted and Recently Issued Accounting Guidance - Summary of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 1,022 | $ 1,358 | ||
Restricted cash | 4 | 7 | ||
Total | $ 1,026 | $ 1,365 | $ 1,127 | $ 859 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
Revenue from Contract with Customer [Abstract] | |
Number of operating segments | 5 |
Revenue - Schedule of Product D
Revenue - Schedule of Product Division Information (Detail) | 9 Months Ended |
Sep. 30, 2018 | |
Bauxite [Member] | |
Product Information [Line Items] | |
Product Division | Bauxite |
Pricing components | Negotiated |
Shipping terms | FOB/CIF |
Payment terms | LC Sight |
Alumina [Member] | Smelter-grade [Member] | |
Product Information [Line Items] | |
Product Division | Alumina: Smelter-grade |
Pricing components | API/spot |
Shipping terms | FOB |
Payment terms | LC Sight/CAD/Net 30 days |
Alumina [Member] | Non-metallurgical [Member] | |
Product Information [Line Items] | |
Product Division | Alumina: Non-metallurgical |
Pricing components | Negotiated |
Shipping terms | FOB/CIF |
Payment terms | Net 30 days |
Primary Aluminum [Member] | Common Alloy Ingot [Member] | |
Product Information [Line Items] | |
Product Division | Primary aluminum: Common alloy ingot |
Pricing components | LME + Regional premium |
Shipping terms | DAP/CIF |
Payment terms | Net 30 to 45 days |
Primary Aluminum [Member] | Value-add Ingot [Member] | |
Product Information [Line Items] | |
Product Division | Primary aluminum: Value-add ingot |
Pricing components | LME + Regional premium + Product premium |
Shipping terms | DAP/CIF |
Payment terms | Net 30 to 45 days |
Flat-rolled Aluminum [Member] | |
Product Information [Line Items] | |
Product Division | Flat-rolled aluminum |
Pricing components | Metal + Conversion |
Shipping terms | DAP |
Payment terms | Negotiated |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Product Division (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,390 | $ 2,964 | $ 10,059 | $ 8,478 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (16) | (25) | (53) | (47) |
Primary Aluminum [Member] | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,658 | 1,608 | 5,176 | 4,458 |
Alumina [Member] | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,098 | 710 | 3,079 | 2,187 |
Flat-rolled Aluminum [Member] | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 472 | 410 | 1,417 | 1,286 |
Energy [Member] | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 115 | 157 | 261 | 340 |
Bauxite [Member] | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 63 | $ 104 | $ 179 | $ 254 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Additional Information (Detail) € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2018USD ($) | Jan. 31, 2018EUR (€) | Jul. 31, 2017USD ($)PotlineKmt | Sep. 30, 2018USD ($)Employees | Sep. 30, 2017USD ($)Employees | Sep. 30, 2018USD ($)EmployeesPotlinekt | Sep. 30, 2017USD ($)Employees | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | $ 177,000,000 | $ (10,000,000) | $ 389,000,000 | $ 12,000,000 | ||||||||
Curtailment of certain pension and other postretirement employee benefits | 175,000,000 | 319,000,000 | ||||||||||
Cash payment | 99,000,000 | $ 73,000,000 | ||||||||||
Number of employees associated with layoff costs | Employees | 10 | 120 | ||||||||||
Carrying value of the smelter and related assets | 16,185,000,000 | 16,185,000,000 | $ 17,447,000,000 | |||||||||
Amount of cash payments expected to be paid beyond the end of the current annual period | 29,000,000 | |||||||||||
Litigation settlement | $ 18,000,000 | € 15 | 15,000,000 | |||||||||
Scenario, Forecast [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Amount of cash payments expected to be paid beyond the end of the current annual period | $ 9,000,000 | $ 20,000,000 | ||||||||||
Pension Costs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | $ 3,000,000 | $ 6,000,000 | ||||||||||
2017 Restructuring Plans Action [Member] | Alumina [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | $ 4,000,000 | 17,000,000 | ||||||||||
Number of employees associated with layoff costs | Employees | 110 | |||||||||||
Contract Termination [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | 2,000,000 | $ 6,000,000 | 86,000,000 | 24,000,000 | ||||||||
Additional restructuring charge | 73,000,000 | 73,000,000 | ||||||||||
Net benefit | 15,000,000 | |||||||||||
Cash payment | $ 62,000,000 | |||||||||||
Total number of potlines | Potline | 4 | |||||||||||
Number of potlines closed | Potline | 1 | |||||||||||
Capacity closure | kt | 38 | |||||||||||
Asset impairment | $ 10,000,000 | |||||||||||
Asset retirement obligations | $ 1,000,000 | |||||||||||
Remaining number of potlines | Potline | 3 | |||||||||||
Remaining curtailment capacity | kt | 146 | |||||||||||
Miscellaneous Charges [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | 2,000,000 | 2,000,000 | ||||||||||
Net benefit | 1,000,000 | |||||||||||
Corporate Office Relocation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | 7,000,000 | 7,000,000 | ||||||||||
Other Adjustments [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Net benefit | 29,000,000 | $ 38,000,000 | ||||||||||
Restructuring Programs Layoffs 2017 [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Cash payment | $ 1,000,000 | $ 3,000,000 | ||||||||||
Number of employees associated with layoff costs | Employees | 140 | |||||||||||
Approximate number of employees already laid off | Employees | 130 | 130 | ||||||||||
Supplier Contract Related Costs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Amount of cash payments expected to be paid beyond the end of the current annual period | $ 8,000,000 | |||||||||||
Lease Termination [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Amount of cash payments expected to be paid beyond the end of the current annual period | 3,000,000 | |||||||||||
Other Items [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Amount of cash payments expected to be paid beyond the end of the current annual period | $ 3,000,000 | |||||||||||
2017 Restructuring Plans Action [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Total number of potlines | Potline | 5 | |||||||||||
Number of potlines restarted | Potline | 3 | |||||||||||
Total capacity of potlines | Kmt | 269 | |||||||||||
Capacity of restarted potlines | Kmt | 161 | |||||||||||
Liabilities related to original closure decision reversed | $ 29,000,000 | |||||||||||
Asset retirement obligations | $ 20,000,000 | |||||||||||
Environmental remediation obligations | 4,000,000 | |||||||||||
Severance costs | $ 5,000,000 | |||||||||||
2017 Restructuring Plans Action [Member] | Smelting and Related Assets [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Carrying value of the smelter and related assets | $ 0 | $ 0 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Restructuring and Other Charges by Reportable Segments, Pretax (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 177 | $ (10) | $ 389 | $ 12 |
Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 4 | 11 | 90 | 37 |
Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 173 | (21) | 299 | (25) |
Bauxite [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 1 | 1 | 1 | 1 |
Alumina [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 1 | 3 | 3 | 2 |
Aluminum Segment [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 2 | $ 7 | $ 86 | $ 34 |
Restructuring and Other Charg_5
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | $ 45 | $ 66 |
Cash payments | (99) | (73) |
Restructuring charges | 103 | 90 |
Other | (8) | (38) |
Restructuring reserve ending balance | 41 | 45 |
Layoff Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 11 | 38 |
Cash payments | (7) | (30) |
Restructuring charges | 1 | 23 |
Other | (1) | (20) |
Restructuring reserve ending balance | 4 | 11 |
Other Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 34 | 28 |
Cash payments | (92) | (43) |
Restructuring charges | 102 | 67 |
Other | (7) | (18) |
Restructuring reserve ending balance | $ 37 | $ 34 |
Restructuring and Other Charg_6
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 177 | $ (10) | $ 389 | $ 12 | |
Pension and Other Postretirement Benefits Costs Charged to Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Pension benefits costs | $ 8 | ||||
Asset Retirement Obligations [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 1 | 10 | |||
Environmental Remediation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 2 | $ 8 |
Segment Information - Schedule
Segment Information - Schedule of Operating Results,Capital Expenditures and Assets of Alcoa's Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 839 | $ 630 | $ 2,463 | $ 1,812 |
Depreciation, depletion, and amortization | 166 | 183 | 538 | 531 |
Equity income (loss) | 5 | (12) | 10 | (21) |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 4,140 | 3,535 | 12,243 | 10,141 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 774 | 628 | 2,247 | 1,807 |
Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 3,366 | 2,907 | 9,996 | 8,334 |
Bauxite [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 106 | 112 | 316 | 319 |
Depreciation, depletion, and amortization | 27 | 24 | 83 | 61 |
Bauxite [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 291 | 325 | 890 | 902 |
Bauxite [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 224 | 221 | 699 | 648 |
Bauxite [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 67 | 104 | 191 | 254 |
Alumina [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 660 | 203 | 1,690 | 727 |
Depreciation, depletion, and amortization | 48 | 53 | 150 | 155 |
Equity income (loss) | 10 | (5) | 23 | (10) |
Alumina [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,645 | 1,111 | 4,617 | 3,339 |
Alumina [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 544 | 398 | 1,534 | 1,143 |
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 1,101 | 713 | 3,083 | 2,196 |
Aluminum [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 73 | 315 | 457 | 766 |
Depreciation, depletion, and amortization | 91 | 106 | 305 | 315 |
Equity income (loss) | (5) | (7) | (13) | (11) |
Aluminum [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 2,204 | 2,099 | 6,736 | 5,900 |
Aluminum [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 6 | 9 | 14 | 16 |
Aluminum [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | $ 2,198 | $ 2,090 | $ 6,722 | $ 5,884 |
Segment Information - Schedul_2
Segment Information - Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alcoa Corporation (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total segment Adjusted EBITDA | $ 839 | $ 630 | $ 2,463 | $ 1,812 |
Transformation | 1 | (11) | (2) | (59) |
Corporate inventory accounting | (17) | (9) | (18) | (12) |
Corporate expenses | (22) | (33) | (75) | (100) |
Provision for depreciation, depletion, and amortization | (173) | (194) | (559) | (563) |
Interest expense | (33) | (26) | (91) | (77) |
Other (expenses) income, net (N) | (2) | (48) | (32) | 3 |
Income before income taxes | 406 | 288 | 1,228 | 943 |
Provision for income taxes | (251) | (119) | (569) | (328) |
Net income attributable to noncontrolling interest | (196) | (56) | (475) | (202) |
Consolidated net (loss) income attributable to Alcoa Corporation | (41) | 113 | 184 | 413 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges (D) | (177) | 10 | (389) | (12) |
Interest expense | (33) | (26) | (91) | (77) |
Other | $ (10) | $ (31) | $ (69) | $ (49) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to Alcoa Corporation | $ (41) | $ 113 | $ 184 | $ 413 |
Average shares outstanding - basic | 186 | 185 | 186 | 184 |
Effect of dilutive securities: | ||||
Stock options | 1 | 1 | 1 | |
Stock and performance awards | 1 | 2 | 2 | |
Average shares outstanding - diluted | 186 | 187 | 189 | 187 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - Stock Awards and Stock Options [Member] shares in Millions | 3 Months Ended |
Sep. 30, 2018shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Number of anti-dilutive securities | 4 |
Potential common shares that would have been included in diluted average shares outstanding | 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension and other postretirement benefits | ||||
Total Other comprehensive income | $ 402 | $ 49 | $ 689 | $ 214 |
Foreign currency translation | ||||
Other comprehensive (loss) income | (196) | 185 | (805) | 402 |
Cash flow hedges | ||||
Total Other comprehensive (loss) income before reclassifications, net of tax | 11 | 12 | 45 | 12 |
Total Other comprehensive (loss) income | (24) | (420) | 321 | (672) |
Alcoa Corporation [Member] | ||||
Pension and other postretirement benefits | ||||
Balance at beginning of period | (2,502) | (2,184) | (2,786) | (2,330) |
Unrecognized net actuarial loss and prior service cost/benefit | 174 | (6) | 250 | 42 |
Tax (expense) benefit | (1) | 2 | (3) | 5 |
Total Other comprehensive income (loss) before reclassifications, net of tax | 173 | (4) | 247 | 47 |
Amortization of net actuarial loss and prior service cost/benefit | 227 | 50 | 487 | 149 |
Tax expense | (2) | (2) | (52) | (6) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 225 | 48 | 435 | 143 |
Total Other comprehensive income | 398 | 44 | 682 | 190 |
Balance at end of period | (2,104) | (2,140) | (2,104) | (2,140) |
Foreign currency translation | ||||
Balance at beginning of period | (1,911) | (1,515) | (1,467) | (1,655) |
Other comprehensive (loss) income | (142) | 141 | (586) | 281 |
Balance at end of period | (2,053) | (1,374) | (2,053) | (1,374) |
Cash flow hedges | ||||
Balance at beginning of period | (554) | (104) | (929) | 210 |
Net change from periodic revaluations | (60) | (545) | 344 | (975) |
Tax (expense) benefit | 10 | 109 | (58) | 186 |
Total Other comprehensive (loss) income before reclassifications, net of tax | (50) | (436) | 286 | (789) |
Net amount reclassified to earnings | 23 | 25 | 63 | 71 |
Tax (expense) benefit | (2) | (4) | (3) | (11) |
Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax | 21 | 21 | 60 | 60 |
Total Other comprehensive (loss) income | (29) | (415) | 346 | (729) |
Balance at end of period | (583) | (519) | (583) | (519) |
Alcoa Corporation [Member] | Aluminum Contracts [Member] | ||||
Cash flow hedges | ||||
Net amount reclassified to earnings | 26 | 33 | 87 | 82 |
Alcoa Corporation [Member] | Financial Contracts [Member] | ||||
Cash flow hedges | ||||
Net amount reclassified to earnings | (6) | (8) | (26) | (11) |
Alcoa Corporation [Member] | Foreign Exchange Contract [Member] | ||||
Cash flow hedges | ||||
Net amount reclassified to earnings | 3 | 2 | ||
Non-controlling Interest [Member] | ||||
Pension and other postretirement benefits | ||||
Balance at beginning of period | (44) | (37) | (47) | (56) |
Unrecognized net actuarial loss and prior service cost/benefit | 4 | 6 | 7 | 24 |
Tax (expense) benefit | (1) | (2) | (2) | (2) |
Total Other comprehensive income (loss) before reclassifications, net of tax | 3 | 4 | 5 | 22 |
Amortization of net actuarial loss and prior service cost/benefit | 1 | 1 | 2 | 2 |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 1 | 1 | 2 | 2 |
Total Other comprehensive income | 4 | 5 | 7 | 24 |
Balance at end of period | (40) | (32) | (40) | (32) |
Foreign currency translation | ||||
Balance at beginning of period | (746) | (600) | (581) | (677) |
Other comprehensive (loss) income | (54) | 44 | (219) | 121 |
Balance at end of period | (800) | (556) | (800) | (556) |
Cash flow hedges | ||||
Balance at beginning of period | 21 | 63 | 51 | 1 |
Net change from periodic revaluations | 12 | (2) | (18) | 88 |
Tax (expense) benefit | (4) | 1 | 5 | (26) |
Total Other comprehensive (loss) income before reclassifications, net of tax | 8 | (1) | (13) | 62 |
Net amount reclassified to earnings | (4) | (5) | (17) | (7) |
Tax (expense) benefit | 1 | 1 | 5 | 2 |
Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax | (3) | (4) | (12) | (5) |
Total Other comprehensive (loss) income | 5 | (5) | (25) | 57 |
Balance at end of period | 26 | 58 | 26 | 58 |
Non-controlling Interest [Member] | Financial Contracts [Member] | ||||
Cash flow hedges | ||||
Net amount reclassified to earnings | $ (4) | $ (5) | $ (17) | $ (7) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Curtailment of certain pension and other postretirement employee benefits | $ 175 | $ 319 |
Non-controlling Interest [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Curtailment of certain pension and other postretirement employee benefits | $ 1 | $ 1 |
Investments - Summary of Unaudi
Investments - Summary of Unaudited Financial Information for Alcoa Corporation's Equity Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments Schedule [Abstract] | ||||
Sales | $ 1,343 | $ 979 | $ 3,963 | $ 2,853 |
Cost of goods sold | 1,062 | 792 | 3,100 | 2,186 |
Net income | $ 46 | $ 55 | $ 143 | $ 97 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2018CAD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018CAD ($) | |
Elysis Limited Partnership [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Combined investment in joint venture | $ 145 | $ 188 | ||
Elysis Limited Partnership [Member] | Rio Tinto Plc [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest percentage | 48.235% | 48.235% | ||
Elysis Limited Partnership [Member] | Quebec Provincial Government [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Limited partner ownership interest percentage | 3.53% | 3.53% | ||
Alcoa Corporation [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution to joint venture | $ 66 | |||
Alcoa Corporation [Member] | Elysis Limited Partnership [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest percentage | 48.235% | 48.235% | ||
Contribution to joint venture | $ 5 | $ 6 | ||
Alcoa Corporation and Rio Tinto plc [Member] | Elysis Limited Partnership [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Commitment to invest in joint venture | $ 44 | $ 55 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 339 | $ 296 |
Work-in-process | 339 | 258 |
Bauxite and alumina | 619 | 585 |
Purchased raw materials | 550 | 473 |
Operating supplies | 145 | 147 |
LIFO reserve | (326) | (306) |
Inventories, total | $ 1,666 | $ 1,453 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventories valued on a LIFO basis | $ 570 | $ 516 |
Inventories valued on a LIFO basis percentage | 29.00% | 29.00% |
Debt - Additional Information (
Debt - Additional Information (Detail) R$ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018USD ($) | Sep. 30, 2018BRL (R$) | May 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018BRL (R$) | Sep. 30, 2017USD ($) | Sep. 30, 2018BRL (R$) | Dec. 31, 2017USD ($) | Dec. 31, 2017BRL (R$) | |
Debt Instrument [Line Items] | |||||||||
Proceeds from issuance of public debt offering | $ 492 | $ 553 | $ 3 | ||||||
Alcoa Aluminio [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of outstanding borrowings | $ 94 | R$ 390 | 104 | R$ 426 | |||||
Line of credit facility, outstanding borrowings | 10 | 10 | R$ 39 | $ 137 | R$ 454 | ||||
Deferred interest | $ 18 | $ 18 | R$ 74 | $ 25 | R$ 82 | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 500 | ||||||||
Senior notes, interest percentage | 6.125% | ||||||||
Proceeds from issuance of public debt offering | $ 492 | ||||||||
Debt redemption description | ANHBV has the option to redeem the 2028 Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the 2028 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after May 2023 at a redemption price specified in the indenture (up to 103.063% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2028 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2028 Notes repurchased, plus any accrued and unpaid interest on the 2028 Notes repurchased. | ANHBV has the option to redeem the 2028 Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the 2028 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after May 2023 at a redemption price specified in the indenture (up to 103.063% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2028 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2028 Notes repurchased, plus any accrued and unpaid interest on the 2028 Notes repurchased. | |||||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | After May 2023 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument redemption price percentage | 103.063% | 103.063% | |||||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | Change in Control [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument redemption price percentage | 101.00% | 101.00% |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements | $ (341) | |||
Curtailments | $ 175 | 319 | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 13 | $ 18 | 41 | $ 53 |
Interest cost | 56 | 62 | 170 | 183 |
Expected return on plan assets | (84) | (101) | (256) | (298) |
Recognized net actuarial loss | 47 | 47 | 154 | 139 |
Amortization of prior service benefit | 2 | 2 | 6 | 6 |
Settlements | 232 | 399 | 3 | |
Curtailments | 5 | |||
Special termination benefits | 3 | 3 | ||
Net periodic benefit cost | 266 | 31 | 519 | 89 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 2 | 4 | 4 |
Interest cost | 8 | 9 | 26 | 28 |
Recognized net actuarial loss | 3 | 3 | 10 | 10 |
Amortization of prior service benefit | (1) | (1) | (4) | |
Settlements | (56) | (56) | ||
Curtailments | (28) | |||
Net periodic benefit cost | $ (43) | $ 13 | $ (45) | $ 38 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Additional Information (Detail) $ in Millions | Jan. 17, 2018Employee | Aug. 31, 2018USD ($)ParticipantRetiree | May 31, 2018USD ($) | Apr. 30, 2018USD ($)ParticipantRetiree | Sep. 30, 2018USD ($)Participant | Sep. 30, 2018USD ($)Participant | Sep. 30, 2017USD ($) | Dec. 31, 2017Plan |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of employees affected the change in defined contribution plans | Participant | 20,600 | 20,600 | ||||||
Company's contribution | $ 100 | $ 705 | ||||||
Settlement gain (charge) on net pension and other postretirement benefits | 341 | |||||||
Defined benefit plan, percentage of combined net unfunded | 65.00% | |||||||
Number of plan affected by curtailment and settlement | Plan | 8 | |||||||
Proceeds from issuance of public debt offering | $ 492 | 553 | $ 3 | |||||
Maturity of debt instrument | 10 years | |||||||
Cash on hand | $ 108 | $ 108 | ||||||
Action# 1 [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of employees affected the change in defined contribution plans | 800 | 800 | 800 | |||||
Percentage of employers contribution in defined benefit plans | 3.00% | |||||||
Action# 2 [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of employees affected the change in defined contribution plans | Participant | 700 | 700 | ||||||
Action# 3 [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of employees affected the change in defined contribution plans | Participant | 2,100 | 2,100 | ||||||
Defined benefit plan, number of participants reduced | Retiree | 2,100 | |||||||
Benefit obligation of retirement plans | $ 560 | |||||||
Defined benefit pension plans, transaction fee | 23 | |||||||
Company's contribution | $ 89 | |||||||
Defined benefit plan, number of participants before transaction | Participant | 3,500 | |||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 167 | |||||||
Action# 4 [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of employees affected the change in defined contribution plans | Participant | 11,500 | 11,500 | ||||||
Defined benefit plan, number of participants reduced | Retiree | 10,500 | |||||||
Benefit obligation of retirement plans | $ 287 | |||||||
Defined benefit pension plans, transaction fee | $ 10 | |||||||
Defined benefit plan, number of participants before transaction | Participant | 43,400 | |||||||
Defined benefit plan, additional number of participants reduced | Retiree | 1,000 | |||||||
Lump sum settlements on pension and other postretirement benefits | $ 75 | |||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 230 | |||||||
Action# 5 [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of employees affected the change in defined contribution plans | Participant | 5,500 | 5,500 | ||||||
Defined benefit plan, number of participants reduced | Participant | 5,500 | |||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 23 | $ (56) | ||||||
United States [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Company's contribution | 600 | |||||||
Foreign Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Company's contribution | $ 105 | |||||||
Pension Benefits [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of employees covered under defined benefit plans | Participant | 54,000 | 54,000 | ||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ (232) | $ (399) | $ (3) | |||||
Other Postretirement Benefits [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of employees covered under defined benefit plans | Participant | 48,000 | 48,000 | ||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 56 | $ 56 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)Participant | Sep. 30, 2018USD ($)ParticipantPlans | Jan. 17, 2018Employee | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of affected plan participants | Participant | 20,600 | 20,600 | ||
(Decrease) increase to accrued pension benefits liability | $ (143) | |||
Decrease to accrued other postretirement benefits liability | (70) | |||
Curtailment charge (gain) | (23) | |||
Settlement charge | $ 341 | |||
Action# 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plans | 3 | |||
Number of affected plan participants | 800 | 800 | 800 | |
Plan remeasurement date | Jan. 31, 2018 | |||
Weighted average discount rate | 3.80% | 3.80% | 3.65% | |
(Decrease) increase to accrued pension benefits liability | $ (57) | |||
Curtailment charge (gain) | $ 5 | |||
Action# 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plans | 1 | |||
Number of affected plan participants | Participant | 700 | 700 | ||
Plan remeasurement date | Jan. 31, 2018 | |||
Weighted average discount rate | 3.43% | 3.43% | 3.29% | |
Decrease to accrued other postretirement benefits liability | $ (7) | |||
Curtailment charge (gain) | $ (28) | |||
Action# 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plans | 2 | |||
Number of affected plan participants | Participant | 2,100 | 2,100 | ||
Plan remeasurement date | Mar. 31, 2018 | |||
Weighted average discount rate | 3.60% | 3.60% | 3.43% | |
(Decrease) increase to accrued pension benefits liability | $ 24 | |||
Settlement charge | $ 167 | |||
Action# 4 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plans | 3 | |||
Number of affected plan participants | Participant | 11,500 | 11,500 | ||
Plan remeasurement date | Jul. 31, 2018 | |||
Weighted average discount rate | 4.39% | 4.39% | 3.70% | |
(Decrease) increase to accrued pension benefits liability | $ (110) | |||
Settlement charge | $ 230 | |||
Action# 5 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans | Plans | 1 | |||
Number of affected plan participants | Participant | 5,500 | 5,500 | ||
Plan remeasurement date | Jul. 31, 2018 | |||
Weighted average discount rate | 4.35% | 4.35% | 3.61% | |
Decrease to accrued other postretirement benefits liability | $ (63) | |||
Settlement charge | $ 23 | $ (56) |
Derivatives and Other Financi_3
Derivatives and Other Financial Instruments - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($)Derivative | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)MWhDerivativeSmelterRefinerykt | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)MWhkt | Dec. 31, 2016USD ($)MWh | |
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 | |||||
Recognized an unrealized gain (loss) | $ 11,000,000 | $ 12,000,000 | $ 45,000,000 | $ 12,000,000 | ||
Electricity purchases | In addition, in January 2017, Alcoa Corporation entered into a new financial contract that hedges the anticipated power requirements at this smelter for the period from August 2017 through July 2021 (see D11 above). At September 30, 2018 and December 31, 2017, this financial contract hedges forecasted electricity purchases of 6,967,620 and 8,805,456, respectively, megawatt hours. | |||||
Derivative [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of derivative contracts recorded as assets | 1,000,000 | $ 1,000,000 | $ 44,000,000 | |||
Fair value of derivative contracts recorded as liabilities | 65,000,000 | 65,000,000 | $ 117,000,000 | |||
Other Expenses (Income) [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) | 1,000,000 | (23,000,000) | ||||
Cash Flow Hedging [Member] | Other Comprehensive Loss [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) recognized | (7,000,000) | (39,000,000) | 6,000,000 | (64,000,000) | ||
Realized gain (loss) on derivatives | $ (3,000,000) | (3,000,000) | $ (10,000,000) | (8,000,000) | ||
Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of smelters | Smelter | 9 | |||||
Number of refineries | Refinery | 3 | |||||
London Metal Exchange [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 2 | 2 | ||||
LME Plus Midwest Premium [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 3 | 3 | ||||
Derivatives Designated as Hedging Instruments [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 1 | 1 | ||||
Derivatives Not Designated as Hedging Instruments [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Number of derivative instruments | Derivative | 1 | 1 | ||||
Derivatives Not Designated as Hedging Instruments [Member] | Other Expenses (Income), Net [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net gain (loss) of derivative instruments | $ 7,000,000 | (15,000,000) | $ 18,000,000 | (19,000,000) | ||
Embedded Credit Derivative [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative contract period | 10 years | |||||
Derivative contract period, description | As Alcoa Corporation does not have outstanding 30-year debt, the Company’s estimated 30-year debt yield is represented by the sum of (i) the excess of the yield on Alcoa’s outstanding notes due 2026 over the yield on only the Ba/BB-rated company debt included in Barclays High Yield Index for intermediate (10-year) credits and (ii) the yield on only the Ba/BB-rated company debt included in Barclays High Yield Index for long (30-year) credits. In accordance with the terms of the power contract, this calculation may be changed in January of each calendar year. | |||||
Embedded Credit Derivative [Member] | Negotiated multiplier [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative contract period | 30 years | |||||
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 | 1,000,000 | 3,000,000 | $ 6,000,000 | 3,000,000 | ||
Energy Contracts [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Increase (decrease) in derivative asset | $ (84,000,000) | |||||
Energy Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other income | 7,000,000 | |||||
Cost of goods sold | $ (6,000,000) | |||||
Energy Contracts [Member] | Derivative D10 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) | 1,000,000 | 6,000,000 | ||||
Energy Contracts [Member] | Derivative D11 [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cost of goods sold | 56,000,000 | |||||
Energy Contracts [Member] | Other Comprehensive Loss [Member] | Derivative D11 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) recognized | 30,000,000 | (7,000,000) | $ (45,000,000) | 100,000,000 | ||
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivative D10 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Forecasted energy purchases in megawatt hours | MWh | 1,969,544 | |||||
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivative D11 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Forecasted energy purchases in megawatt hours | MWh | 6,967,620 | 8,805,456 | ||||
Energy Contracts [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 | (11,000,000) | (7,000,000) | ||||
Embedded Aluminum Derivative [Member] | Cash Flow Hedging [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Realized gain (loss) on derivatives | (25,000,000) | (29,000,000) | $ (79,000,000) | (74,000,000) | ||
Recognized an unrealized gain (loss) | (70,000,000) | (502,000,000) | $ 365,000,000 | (1,043,000,000) | ||
Embedded Aluminum Derivative [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Aluminum forecast sales | kt | 2,643 | 2,859 | ||||
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 | $ (93,000,000) | |||||
Derivative instruments ineffectiveness | 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 | $ 6,000,000 | $ (7,000,000) | $ 12,000,000 | $ (15,000,000) | ||
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 | 1 | 1 |
Derivatives and Other Financi_4
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2018USD ($)MWh$ / Metric_Ton$ / MWh$ / Barrels$ / lb | Dec. 31, 2017USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 98 | $ 197 |
Derivative Liabilities, Fair value | $ | $ 698 | $ 1,173 |
Derivative D7 [Member] | Energy Contracts [Member] | Interrelationship of Future Aluminum and Oil Prices [Member] | Level 3 [Member] | Average Price [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,056 | |
Maturity month and year of future aluminum price | 2018-10 | |
Expected future oil prices | $ / Barrels | 83 | |
Maturity month and year of future oil price | 2018-10 | |
Derivative D11 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 98 | |
Derivative D11 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price of electricity beyond forward curve | $ / MWh | 60.48 | |
Maturity date of electricity beyond forward curve | 2,018 | |
Derivative D11 [Member] | Energy Contracts [Member] | Interrelationship of Forward Energy Price and the Consumer Price Index and Price of Electricity Beyond Forward Curve [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price of electricity beyond forward curve | $ / MWh | 44.56 | |
Maturity date of electricity beyond forward curve | 2,021 | |
Derivative D1 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum One [Member] | Level 3 [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 302 | |
Megawatt hours per year | MWh | 4,000,000 | |
Derivative D1 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum One [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,056 | |
Maturity year of future aluminum price | 2,018 | |
Derivative D1 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum One [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,480 | |
Maturity year of future aluminum price | 2,027 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | Level 3 [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 351 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | Level 3 [Member] | Average Price [Member] | Minimum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,544 | |
Maturity year of future aluminum price | 2,029 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | Level 3 [Member] | Midwest Premium [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.1950 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | Level 3 [Member] | Midwest Premium [Member] | Minimum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium expected year | 2,018 | |
Midwest Premium | $ / lb | 0.2050 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | Two Contracts [Member] | Level 3 [Member] | Average Price [Member] | Maximum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,588 | |
Maturity year of future aluminum price | 2,029 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | Two Contracts [Member] | Level 3 [Member] | Midwest Premium [Member] | Maximum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium expected year | 2,029 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | One Contract [Member] | Level 3 [Member] | Average Price [Member] | Minimum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,883 | |
Maturity year of future aluminum price | 2,036 | |
Derivative D3 Through D5 [Member] | Energy Contracts [Member] | Price of Aluminum beyond Forward Curve [Member] | One Contract [Member] | Level 3 [Member] | Midwest Premium [Member] | Maximum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium expected year | 2,036 | |
Derivative D8 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 14 | |
Price of electricity beyond forward curve | $ / MWh | 2,000,000 | |
Derivative D8 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,056 | |
Maturity year of future aluminum price | 2,018 | |
Midwest Premium expected year | 2,018 | |
Midwest Premium | $ / lb | 0.2000 | |
Derivative D8 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Amount of Megawatt Hours of Energy Needed to Produce Forecasted Metric Tons of Aluminum [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,070 | |
Maturity year of future aluminum price | 2,019 | |
Midwest Premium expected year | 2,019 | |
Midwest Premium | $ / lb | 0.2050 | |
Derivative D2 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Level 3 [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 13 | |
Derivative D2 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Level 3 [Member] | Average Price [Member] | Minimum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,177 | |
Maturity year of future aluminum price | 2,018 | |
Derivative D2 [Member] | Energy Contracts [Member] | Interrelationship of LME Price to Overall Energy Price [Member] | Level 3 [Member] | Average Price [Member] | Maximum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Expected future aluminum prices | 2,111 | |
Maturity year of future aluminum price | 2,019 | |
Derivative D9 [Member] | Energy Contracts [Member] | Estimated Difference In Credit Spread Of Each Of Alcoa Corporation And Counterparty, And Negotiated Multiplier [Member] | Level 3 [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 18 | |
Percentage of credit spread | 2.60% | |
Derivative D9 [Member] | Energy Contracts [Member] | Estimated Difference In Credit Spread Of Each Of Alcoa Corporation And Counterparty, And Negotiated Multiplier [Member] | Level 3 [Member] | Counterparty [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Percentage of credit spread | 4.25% | |
Derivative D9 [Member] | Energy Contracts [Member] | Estimated Difference In Credit Spread Of Each Of Alcoa Corporation And Counterparty, And Negotiated Multiplier [Member] | Level 3 [Member] | Alcoa Corporation [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Percentage of credit spread | 6.85% |
Derivatives and Other Financi_5
Derivatives and Other Financial Instruments - Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | $ 98 | $ 197 |
Fair value liability derivatives | 698 | 1,173 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 98 | 197 |
Fair value liability derivatives | 666 | 1,112 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Financial Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 56 | 96 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Financial Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value asset derivatives | 42 | 101 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 93 | 120 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 573 | 992 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 32 | 61 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 14 | 28 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Embedded Credit Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 3 | 4 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Embedded Aluminum Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | 6 | |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Embedded Credit Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value liability derivatives | $ 15 | $ 23 |
Derivatives and Other Financi_6
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Embedded Aluminum Derivative [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Beginning balance | $ 644 | $ 1,146 |
Fair value measurement, Liabilities, Other comprehensive income | 70 | (365) |
Fair value measurement, Liabilities, Purchases, sales, issuances, and settlements | 0 | 0 |
Fair value measurement, Liabilities,Transfers into and/or out of Level 3 | 0 | 0 |
Fair value measurement, Liabilities, Other | (3) | (10) |
Fair value measurement, Liabilities, Ending balance | 680 | 680 |
Fair value measurement, Liabilities, Sales | 0 | 0 |
Fair value measurement, Liabilities, Cost of goods sold | 0 | 0 |
Fair value measurement, Liabilities, Other income, net | (6) | (12) |
Embedded Aluminum Derivative [Member] | Sales [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | (25) | (79) |
Embedded Aluminum Derivative [Member] | Other Expense [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | (6) | (12) |
Embedded Credit Derivative [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Beginning balance | 20 | 27 |
Fair value measurement, Liabilities, Cost of goods sold | (1) | (3) |
Fair value measurement, Liabilities, Purchases, sales, issuances, and settlements | 0 | 0 |
Fair value measurement, Liabilities,Transfers into and/or out of Level 3 | 0 | 0 |
Fair value measurement, Liabilities, Ending balance | 18 | 18 |
Fair value measurement, Liabilities, Sales | 0 | 0 |
Fair value measurement, Liabilities, Cost of goods sold | 0 | 0 |
Fair value measurement, Liabilities, Other income, net | (1) | (6) |
Embedded Credit Derivative [Member] | Other Expense [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | (1) | (6) |
Financial Contracts [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | 83 | 197 |
Fair value measurement, Assets, Other comprehensive income | 30 | 45 |
Fair value measurement, Assets, Purchases, sales, issuances, and settlements | 0 | 0 |
Fair value measurement, Assets, Transfers into and/or out of Level 3 | 0 | 0 |
Fair value measurement, Assets, Other | (4) | (9) |
Fair value measurement, Assets, Ending balance | 98 | 98 |
Fair value measurement, Assets, Sales | 0 | 0 |
Fair value measurement, Assets, Cost of goods sold | 0 | 0 |
Financial Contracts [Member] | Cost of Goods Sold [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (11) | 45 |
Fair value measurement, Assets | $ (11) | $ 45 |
Derivatives and Other Financi_7
Derivatives and Other Financial Instruments - Schedule of Carrying Values and Fair Values of Other Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 30, 2017 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 1,022 | $ 1,358 |
Restricted cash | 4 | 7 |
Long-term debt due within one year | 4 | 16 |
Long-term debt, less amount due within one year | 1,820 | 1,388 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 1,022 | 1,358 |
Restricted cash | 4 | 7 |
Long-term debt due within one year | 4 | 16 |
Long-term debt, less amount due within one year | $ 1,959 | $ 1,555 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | |
Income Taxes [Line Items] | |||||
Corporate income tax rate | 21.00% | 21.00% | 35.00% | ||
Discrete income tax charge related to TCJA | $ 22 | ||||
Tax Authority, Spain [Member] | |||||
Income Taxes [Line Items] | |||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 30 | € 26 | $ 30 | € 26 | |
Percentage of share of the estimated loss | 49.00% | 49.00% | 49.00% | 49.00% | |
Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Percentage of deductible expenses | 3.00% | 3.00% |
Contingencies and Commitments -
Contingencies and Commitments - Contingencies - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2018USD ($) | Feb. 28, 2018EUR (€) | Jan. 31, 2018USD ($) | Jan. 31, 2018EUR (€) | Jun. 30, 2018USD ($)Installment | Jun. 30, 2018USD ($)Installment | Jun. 30, 2018EUR (€) | Sep. 30, 2018USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||||||||||
Management estimate for maximum exposure from class action | $ 97 | € 76 | ||||||||||
Partial Reserve | $ 37 | € 34 | ||||||||||
Litigation settlement | $ 18 | € 15 | 15 | |||||||||
Reduction in restructuring and other charges reserve | $ 22 | € 19 | ||||||||||
Accrued environmental reserves | $ 285 | $ 294 | ||||||||||
Invitalia [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Cash payment | $ 23 | € 20 | ||||||||||
Number of installments, litigation payment | Installment | 3 | 3 | ||||||||||
Installment amount | $ 8 | € 7 | ||||||||||
Net benefit in Restructuring and other charges | $ 15 | |||||||||||
Reversal of previously accrued asset retirement obligations and environmental reserves | 38 | |||||||||||
Accrued asset retirement obligations | 36 | 36 | ||||||||||
Accrued environmental reserves | $ 2 | 2 | ||||||||||
Charge to establish a liability for planned cash payment to Invitalia | $ 23 |
Contingencies and Commitments_2
Contingencies and Commitments - Contingencies - Additional Information - 1 (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Oct. 04, 2016 | |
Loss Contingencies [Line Items] | |||||
Remediation reserve balance | $ 285 | $ 285 | $ 294 | ||
Remediation reserve balance, classified as a current liability | 37 | 37 | 36 | ||
Increase in remediation reserve | 15 | ||||
Payments related to remediation expenses applied against the reserve | 5 | 19 | |||
Increase (Decrease) in reserves due to effects of foreign currency translation | 1 | 6 | |||
Reclassification of amounts included in asset retirement obligations | 1 | ||||
Cost of Goods Sold [Member] | |||||
Loss Contingencies [Line Items] | |||||
Increase in remediation reserve | 15 | ||||
Restructuring and Other Charges [Member] | |||||
Loss Contingencies [Line Items] | |||||
Changes to the remediation reserve due to charges | 2 | ||||
Remediation reserve balance, revision | 2 | ||||
Sherwin [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve balance | 38 | 38 | $ 29 | ||
Changes to the remediation reserve due to charges | 9 | ||||
Portovesme Italy [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve balance, revision | 2 | ||||
Other Sites [Member] | |||||
Loss Contingencies [Line Items] | |||||
Changes to the remediation reserve due to charges | 8 | ||||
Other Sites [Member] | Cost of Goods Sold [Member] | |||||
Loss Contingencies [Line Items] | |||||
Changes to the remediation reserve due to charges | 6 | ||||
Other Sites [Member] | Restructuring and Other Charges [Member] | |||||
Loss Contingencies [Line Items] | |||||
Changes to the remediation reserve due to charges | 2 | ||||
Sherwin, TX Site [Member] | |||||
Loss Contingencies [Line Items] | |||||
Remediation reserve balance | $ 38 | $ 38 | $ 29 | ||
Increase in remediation reserve | $ 9 |
Contingencies and Commitments_3
Contingencies and Commitments - Contingencies - Additional Information - 2 (Detail) | Jul. 06, 2018USD ($) | Jun. 06, 2018USD ($) | Jun. 05, 2018USD ($) | Dec. 16, 2016USD ($)Claim | Apr. 08, 2013USD ($) | Apr. 08, 2013BRL (R$) | Feb. 28, 2018USD ($)Claim | Mar. 31, 2013USD ($) | May 31, 2012USD ($) | May 31, 2012BRL (R$) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | Jul. 06, 2018EUR (€) | Jun. 30, 2018EUR (€) | Oct. 04, 2016USD ($) | Apr. 08, 2013BRL (R$) | Mar. 31, 2013BRL (R$) |
Loss Contingencies [Line Items] | |||||||||||||||||||||
Remediation reserve balance | $ 285,000,000 | $ 285,000,000 | $ 294,000,000 | ||||||||||||||||||
Increase (decrease) in remediation reserve | $ 15,000,000 | ||||||||||||||||||||
Estimated fair value of land and other assets | $ 16,000,000 | ||||||||||||||||||||
Description of closure of Copano facility | A portion of the Copano facility must be closed within 10 years and the remaining portion must be closed within 30 years. | A portion of the Copano facility must be closed within 10 years and the remaining portion must be closed within 30 years. | |||||||||||||||||||
Maximum period of submitting groundwater assessment report and a drinking water survey report related to Copano facility from effective date | 180 days | ||||||||||||||||||||
Properties, plants, and equipment recognized | $ 16,000,000 | ||||||||||||||||||||
Environmental remediation liabilities recognized | 9,000,000 | ||||||||||||||||||||
Other related liabilities recognized | 7,000,000 | ||||||||||||||||||||
Financial assurance paid to trust managed by state of Texas | $ 12,000,000 | ||||||||||||||||||||
Tax Authority, Spain [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 30,000,000 | € 26,000,000 | $ 30,000,000 | € 26,000,000 | |||||||||||||||||
Percentage of share of the estimated loss | 49.00% | 49.00% | 49.00% | 49.00% | |||||||||||||||||
Minimum [Member] | Tax Authority, Spain [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Total combined assessments | $ 25,000,000 | € 21,000,000 | |||||||||||||||||||
Maximum [Member] | Tax Authority, Spain [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Total combined assessments | $ 61,000,000 | € 53,000,000 | |||||||||||||||||||
Tax Year 2006 Through 2009 [Member] | Tax Authority, Spain [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Total combined assessments | $ 152,000,000 | € 131,000,000 | |||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Brazilian Federal Revenue Office [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Disallowed tax credits | $ 110,000,000 | R$ 220000000 | |||||||||||||||||||
Percentage of penalty of the gross disallowed amount | 50.00% | 50.00% | 50.00% | ||||||||||||||||||
Value added tax receivable | $ 41,000,000 | R$ 82000000 | |||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Minimum [Member] | Brazilian Federal Revenue Office [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 0 | ||||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Minimum [Member] | Fixed Assets [Member] | Brazilian Federal Revenue Office [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Disallowed tax credits | 0 | ||||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Maximum [Member] | Brazilian Federal Revenue Office [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | 26,000,000 | R$ 103000000 | |||||||||||||||||||
Alcoa World Alumina Brasil [Member] | Maximum [Member] | Fixed Assets [Member] | Brazilian Federal Revenue Office [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Disallowed tax credits | $ 29,000,000 | R$ 117000000 | |||||||||||||||||||
Alcoa Corporation [Member] | Tax Authority, Spain [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Tax matters agreement, contribution percentage | 49.00% | ||||||||||||||||||||
Arconic Inc [Member] | Tax Authority, Spain [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Tax matters agreement, contribution percentage | 51.00% | ||||||||||||||||||||
Baie Comeau [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Remediation reserve balance | $ 3,000,000 | $ 3,000,000 | 5,000,000 | ||||||||||||||||||
Payments related to remediation expenses applied against the reserve | (4,000,000) | ||||||||||||||||||||
East St. Louis, IL Site [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Remediation reserve balance | 3,000,000 | $ 3,000,000 | 4,000,000 | ||||||||||||||||||
Long-term inspection, maintenance, and monitoring program period in years | 30 years | 30 years | |||||||||||||||||||
Mosjoen [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Remediation reserve balance | 2,000,000 | ||||||||||||||||||||
Increase (decrease) in remediation reserve | $ (2,000,000) | ||||||||||||||||||||
Sherwin [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Remediation reserve balance | 38,000,000 | 38,000,000 | $ 29,000,000 | ||||||||||||||||||
Fusina Site [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Remediation reserve balance | 6,000,000 | 6,000,000 | 8,000,000 | ||||||||||||||||||
Portovesme Site [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Remediation reserve balance | $ 13,000,000 | 13,000,000 | $ 16,000,000 | ||||||||||||||||||
Cost of Goods Sold [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Increase (decrease) in remediation reserve | $ 15,000,000 | ||||||||||||||||||||
Boskalis Binding Arbitration Proceeding [Member] | Suralco [Member] | Minimum [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Unfavourable decision probability percentage | 25.00% | 25.00% | |||||||||||||||||||
Contract for Mining Services [Member] | Boskalis Binding Arbitration Proceeding [Member] | Suralco [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Claims sought | $ 47,000,000 | ||||||||||||||||||||
Litigation filing date | Dec. 16, 2016 | ||||||||||||||||||||
Number of claims | Claim | 4,000,000 | ||||||||||||||||||||
Number of claims settled | Claim | 2 | ||||||||||||||||||||
Number of claims dismissed | Claim | 2 | ||||||||||||||||||||
Amount awarded for the damages | $ 29,000,000 | ||||||||||||||||||||
Amount awarded including prejudgement interest | $ 3,000,000 | ||||||||||||||||||||
Cash payment for damages | $ 29,000,000 | ||||||||||||||||||||
Cash payment for damages after noncontrolling interest | 17,000,000 | ||||||||||||||||||||
Contract for Mining Services [Member] | Boskalis Binding Arbitration Proceeding [Member] | Cost of Goods Sold [Member] | Suralco [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Cash payment for damages | 26,000,000 | ||||||||||||||||||||
Contract for Mining Services [Member] | Boskalis Binding Arbitration Proceeding [Member] | Interest Expense [Member] | Suralco [Member] | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Cash payment for damages | $ 3,000,000 |
Contingencies and Commitments_4
Contingencies and Commitments - Commitments - Additional Information (Detail) $ in Millions, ر.س in Billions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($) | Sep. 30, 2018SAR (ر.س) | Dec. 31, 2017USD ($) | |
Other Noncurrent Liabilities and Deferred Credits [Member] | |||
Other Commitments [Line Items] | |||
Guarantee issued on behalf of smelting and rolling mill companies | $ 1 | $ 3 | |
Financial Guarantee [Member] | |||
Other Commitments [Line Items] | |||
Debt service requirements, principal | 50 | ||
Debt service requirements, interest maximum | 10 | ||
Alcoa Corporation [Member] | |||
Other Commitments [Line Items] | |||
Contribution to joint venture | 66 | ||
Alcoa Corporation [Member] | |||
Other Commitments [Line Items] | |||
Project financing Investment | $ 1,179 | ||
Ma'aden Joint Venture [Member] | Saudi Arabia [Member] | |||
Other Commitments [Line Items] | |||
Ownership interest in joint venture | 74.90% | 74.90% | |
Contribution to joint venture | 199 | ||
Alcoa Joint Venture [Member] | |||
Other Commitments [Line Items] | |||
Ownership interest in joint venture | 25.10% | 25.10% | |
Maaden Alcoa Joint Venture [Member] | |||
Other Commitments [Line Items] | |||
Equity investments | $ 892 | $ 887 | |
Maaden Alcoa Joint Venture [Member] | Alcoa Corporation [Member] | |||
Other Commitments [Line Items] | |||
Expected project investment | 1,100 | ||
Capital investment commitment paid-to-date | 982 | ||
Maaden Alcoa Joint Venture [Member] | Saudi Arabia [Member] | |||
Other Commitments [Line Items] | |||
Expected project investment | 10,800 | ر.س 40.5 | |
Alcoa Corporation [Member] | |||
Other Commitments [Line Items] | |||
Project financing Investment | $ 296 |
Other Expenses (Income), Net -
Other Expenses (Income), Net - Schedule of Other Expenses (Income), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Equity (income) loss | $ (1) | $ 13 | $ (2) | $ 23 |
Foreign currency (gains) losses, net | (22) | 1 | (49) | 6 |
Net loss (gain) from asset sales | 3 | 1 | (115) | |
Net (gain) loss on mark-to-market derivative instruments | (8) | 6 | (19) | 22 |
Non-service costs - Pension & OPEB | 32 | 21 | 109 | 64 |
Other | (2) | 6 | (7) | (3) |
Other (income) expenses, net | $ 2 | $ 48 | $ 32 | $ (3) |
Other Expenses (Income), Net _2
Other Expenses (Income), Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2017 | |
Other Non operating Income Expense [Line Items] | |||
Net gain from asset sales | $ (3) | $ (1) | $ 115 |
United States [Member] | |||
Other Non operating Income Expense [Line Items] | |||
Net gain from asset sales | $ 120 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Oct. 31, 2018EmployeeSmelter | Oct. 17, 2018USD ($) | Sep. 30, 2018shares |
Subsequent Event [Line Items] | |||
Common stock, shares issued and outstanding | shares | 186,490,966 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Common stock repurchase program, authorized amount | $ | $ 200 | ||
Subsequent Event [Member] | Spain [Member] | |||
Subsequent Event [Line Items] | |||
Number of smelters | Smelter | 2 | ||
Subsequent Event [Member] | Aviles [Member] | |||
Subsequent Event [Line Items] | |||
Number of employees to be dismissed | 317 | ||
Subsequent Event [Member] | La Coruna [Member] | |||
Subsequent Event [Line Items] | |||
Number of employees to be dismissed | 369 |