Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AA | |
Entity Registrant Name | ALCOA CORP | |
Entity Central Index Key | 0001675149 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 185,534,704 |
Statement of Consolidated Opera
Statement of Consolidated Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Sales (D) | $ 2,719 | $ 3,090 |
Cost of goods sold (exclusive of expenses below) (H) | 2,180 | 2,302 |
Selling, general administrative, and other expenses | 84 | 67 |
Research and development expenses | 7 | 8 |
Provision for depreciation, depletion, and amortization | 172 | 194 |
Restructuring and other charges, net (C) | 113 | (19) |
Interest expense | 30 | 26 |
Other expenses, net (N) | 41 | 21 |
Total costs and expenses | 2,627 | 2,599 |
Income before income taxes | 92 | 491 |
Provision for income taxes | 150 | 151 |
Net (loss) income | (58) | 340 |
Less: Net income attributable to noncontrolling interest | 141 | 145 |
NET (LOSS) INCOME ATTRIBUTABLE TO ALCOA CORPORATION | $ (199) | $ 195 |
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS (E): | ||
Basic | $ (1.07) | $ 1.05 |
Diluted | $ (1.07) | $ 1.04 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net (loss) income (H) | $ (58) | $ 340 |
Other comprehensive (loss) income, net of tax (F): | ||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 42 | 102 |
Foreign currency translation adjustments | (20) | (13) |
Net change in unrecognized gains/losses on cash flow hedges | (282) | 530 |
Total Other comprehensive (loss) income, net of tax | (260) | 619 |
Comprehensive (loss) income | (468) | 847 |
Comprehensive (loss) income | 150 | 112 |
Comprehensive (loss) income | (318) | 959 |
Alcoa Corporation [Member] | ||
Net (loss) income (H) | (199) | 195 |
Other comprehensive (loss) income, net of tax (F): | ||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 41 | 101 |
Foreign currency translation adjustments | (22) | 1 |
Net change in unrecognized gains/losses on cash flow hedges | (288) | 550 |
Total Other comprehensive (loss) income, net of tax | (269) | 652 |
Comprehensive (loss) income | (468) | 847 |
Non-controlling Interest [Member] | ||
Net (loss) income (H) | 141 | 145 |
Other comprehensive (loss) income, net of tax (F): | ||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 1 | 1 |
Foreign currency translation adjustments | 2 | (14) |
Net change in unrecognized gains/losses on cash flow hedges | 6 | (20) |
Total Other comprehensive (loss) income, net of tax | 9 | (33) |
Comprehensive (loss) income | $ 150 | $ 112 |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents (J) | $ 1,017 | $ 1,113 |
Receivables from customers | 758 | 830 |
Other receivables | 184 | 173 |
Inventories (H) | 1,799 | 1,819 |
Fair value of derivative instruments (J) | 71 | 73 |
Prepaid expenses and other current assets (H) | 285 | 320 |
Total current assets | 4,114 | 4,328 |
Properties, plants, and equipment | 22,015 | 21,807 |
Less: accumulated depreciation, depletion, and amortization | 13,687 | 13,480 |
Properties, plants, and equipment, net | 8,328 | 8,327 |
Investments (G & M) | 1,362 | 1,360 |
Deferred income taxes | 604 | 560 |
Fair value of derivative instruments (J) | 68 | 82 |
Other noncurrent assets | 1,480 | 1,475 |
Total assets | 15,956 | 16,132 |
Current liabilities: | ||
Accounts payable, trade | 1,503 | 1,663 |
Accrued compensation and retirement costs | 383 | 400 |
Taxes, including income taxes | 395 | 426 |
Fair value of derivative instruments (J) | 84 | 82 |
Other current liabilities | 437 | 347 |
Long-term debt due within one year (J) | 1 | 1 |
Total current liabilities | 2,803 | 2,919 |
Long-term debt, less amount due within one year (J) | 1,802 | 1,801 |
Accrued pension benefits (I) | 1,387 | 1,407 |
Accrued other postretirement benefits (I) | 851 | 868 |
Asset retirement obligations | 543 | 529 |
Environmental remediation (M) | 243 | 236 |
Fair value of derivative instruments (J) | 580 | 261 |
Noncurrent income taxes | 300 | 301 |
Other noncurrent liabilities and deferred credits | 364 | 222 |
Total liabilities | 8,873 | 8,544 |
CONTINGENCIES AND COMMITMENTS (M) | ||
Alcoa Corporation shareholders’ equity: | ||
Common stock | 2 | 2 |
Additional capital | 9,618 | 9,611 |
Retained earnings (H) | 371 | 570 |
Accumulated other comprehensive loss (F) | (4,834) | (4,565) |
Total Alcoa Corporation shareholders’ equity | 5,157 | 5,618 |
Noncontrolling interest (H) | 1,926 | 1,970 |
Total equity | 7,083 | 7,588 |
Total liabilities and equity | $ 15,956 | $ 16,132 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FROM OPERATIONS | ||
Net (loss) income (H) | $ (58) | $ 340 |
Adjustments to reconcile net (loss) income to cash from operations: | ||
Depreciation, depletion, and amortization | 172 | 194 |
Deferred income taxes (H) | 33 | 2 |
Equity earnings, net of dividends | (3) | (6) |
Restructuring and other charges, net (C) | 113 | (19) |
Net gain from investing activities – asset sales (N) | (8) | (5) |
Net periodic pension benefit cost (I) | 30 | 40 |
Stock-based compensation | 10 | 10 |
Provision for bad debt expense | 20 | |
Other | 23 | (14) |
Changes in assets and liabilities, excluding effects of foreign currency translation adjustments: | ||
Decrease in receivables | 42 | 43 |
Decrease (Increase) in inventories (H) | 17 | (248) |
Decrease in prepaid expenses and other current assets | 13 | 2 |
(Decrease) in accounts payable, trade | (159) | (106) |
(Decrease) in accrued expenses | (18) | (186) |
(Decrease) Increase in taxes, including income taxes | (43) | 84 |
Pension contributions (I) | (7) | (40) |
(Increase) in noncurrent assets | (10) | (13) |
Increase (Decrease) in noncurrent liabilities | 1 | (23) |
CASH PROVIDED FROM OPERATIONS | 168 | 55 |
FINANCING ACTIVITIES | ||
Additions to debt (original maturities greater than three months) | 61 | |
Payments on debt (original maturities greater than three months) | (4) | |
Proceeds from the exercise of employee stock options | 1 | 15 |
Contributions from noncontrolling interest | 20 | 53 |
Distributions to noncontrolling interest | (214) | (267) |
Other | (6) | (5) |
CASH USED FOR FINANCING ACTIVITIES | (199) | (147) |
INVESTING ACTIVITIES | ||
Capital expenditures | (69) | (74) |
Proceeds from the sale of assets | 11 | |
Additions to investments | (1) | |
CASH USED FOR INVESTING ACTIVITIES | (59) | (74) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (6) | 4 |
Net change in cash and cash equivalents and restricted cash | (96) | (162) |
Cash and cash equivalents and restricted cash at beginning of year | 1,116 | 1,365 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ 1,020 | $ 1,203 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Beginning Balance at Dec. 31, 2017 | $ 6,968 | $ 2 | $ 9,590 | $ 318 | $ (5,182) | $ 2,240 |
Net (loss) income | 340 | 195 | 145 | |||
Other comprehensive income (loss) (F) | 619 | 652 | (33) | |||
Stock-based compensation | 10 | 10 | ||||
Common stock issued: compensation plans | 15 | 15 | ||||
Contributions | 53 | 53 | ||||
Distributions | (267) | (267) | ||||
Other | 15 | 18 | (3) | |||
Ending Balance at Mar. 31, 2018 | 7,753 | 2 | 9,633 | 513 | (4,530) | 2,135 |
Beginning Balance at Dec. 31, 2018 | 7,588 | 2 | 9,611 | 570 | (4,565) | 1,970 |
Net (loss) income | (58) | (199) | 141 | |||
Other comprehensive income (loss) (F) | (260) | (269) | 9 | |||
Stock-based compensation | 10 | 10 | ||||
Common stock issued: compensation plans | 1 | 1 | ||||
Contributions | 20 | 20 | ||||
Distributions | (214) | (214) | ||||
Other | (4) | (4) | ||||
Ending Balance at Mar. 31, 2019 | $ 7,083 | $ 2 | $ 9,618 | $ 371 | $ (4,834) | $ 1,926 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | A. – The interim Consolidated Financial Statements of Alcoa Corporation and its subsidiaries (Alcoa Corporation or the Company) are unaudited. These Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The 2018 year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which includes all disclosures required by GAAP. References in these Notes to ParentCo refer to Alcoa Inc., a Pennsylvania corporation, and its consolidated subsidiaries (through October 31, 2016, at which time it was renamed Arconic Inc. (Arconic)). 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 for the year ended December 31, 2018 for additional information. As of January 1, 2019, the Company changed its accounting method for valuing certain inventories from last-in, first-out (LIFO) to average cost. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented. See Note H for more information regarding the change in inventory accounting method. Principles of Consolidation. The Consolidated Financial Statements of Alcoa Corporation include the accounts of Alcoa Corporation and companies in which Alcoa Corporation has a controlling interest, including those that comprise the Alcoa World Alumina & Chemicals (AWAC) joint venture (see below). Intercompany transactions have been eliminated. The equity method of accounting is used for investments in affiliates and other joint ventures over which Alcoa Corporation has significant influence but does not have effective control. Investments in affiliates in which Alcoa Corporation cannot exercise significant influence are accounted for on the cost method. AWAC is an unincorporated global joint venture between Alcoa Corporation and Alumina Limited and consists of several affiliated operating entities, which own, or have an interest in, or operate the bauxite mines and alumina refineries within Alcoa Corporation’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and a portion of the São Luís refinery, all in Brazil) and the Portland smelter in Australia within Alcoa Corporation’s Aluminum segment. Alcoa Corporation owns 60% and Alumina Limited owns 40% of these individual entities, which are consolidated by the Company for financial reporting purposes and include Alcoa of Australia Limited, 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 | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Adopted and Recently Issued Accounting Guidance | B. Recently Adopted and Recently Issued Accounting Guidance Adopted On January 1, 2019 Alcoa Corporation adopted Accounting Standards Update (ASU) No. 2016-02, Leases, issued by the Financial Accounting Standards Board (FASB) regarding the accounting for leases, using the modified retrospective approach. This ASU requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for operating and finance leases with a term of 12 months or more. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option, or not exercise an option to terminate the lease. A right-of-use asset represents an entity’s right to use the underlying asset for the lease term, and a lease liability represents an entity’s obligation to make lease payments. The Company has made a policy election not to record any non-lease components in the lease liability. Previously, an asset and liability were only recorded for leases classified as capital leases (financing leases). The measurement, recognition, and presentation of expenses and cash flows arising from leases by a lessee remains the same. Additionally, in July 2018, the FASB issued ASU No. 2018-11, Targeted Improvements, to provide for an alternative transition method to the new lease guidance, whereby an entity can choose to not reflect the impact of the new lease guidance in the prior periods included in its financial statements. The Company elected this alternative transition method upon adoption on January 1, 2019. Management also elected the practical expedient related to land easements, allowing the Company to carry forward the current treatment on existing arrangements. As a result of the adoption, management recorded a right-of-use asset and lease liability, each in the amount of $201, on Alcoa Corporation’s Consolidated Balance Sheet as of January 1, 2019 for several types of operating leases, including land and buildings, alumina refinery process control technology, plant equipment, vehicles, and computer equipment. See Note L for additional information related to the adoption of this standard. Alcoa Corporation’s adoption of the following accounting guidance in 2019 did not have a material impact on the Company’s consolidated financial statements: Accounting Standards Update 2018-01 L 2018-02 2018-07 Issued In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General. This ASU 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. Certain disclosures associated with accumulated other comprehensive income, valuation of Level 3 assets, and sensitivities in assumed health care trend rates and interest rates have been eliminated. New disclosures have been added to explain significant gains and losses related to changes in benefit obligations, changes included in other comprehensive income for recurring Level 3 fair value measurements, and information on significant unobservable inputs used to develop Level 3 fair value measurements. These changes become effective for Alcoa Corporation for its fiscal year ending December 31, 2020 and for interim periods therein with early adoption permitted and retrospective presentation for all periods presented required. Other than updating the applicable disclosures, the adoption of this guidance will not have an impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software. This ASU aligns the accounting for cloud computing implementation costs with that of costs to develop or obtain internal-use software, meaning such costs that are part of the application development stage are capitalized as an asset and amortized over the term of the arrangement, otherwise, such costs are expensed as incurred. It also clarifies the classification of amounts related to capitalized implementation costs in the financial statements. This guidance becomes effective for Alcoa Corporation on January 1, 2020, with early adoption permitted. Management is currently evaluating the potential impact of this guidance on the Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses. This ASU added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses and applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. These changes become effective for Alcoa Corporation on January 1, 2020. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Charges, Net | C. Restructuring and Other Charges, Net – In the first quarter of 2019, Alcoa Corporation recorded Restructuring and other charges, net of $113, which were comprised of the following components: $103 for exit costs related to the curtailment of the Avilés and La Coru ñ a smelters in Spain (see below); $7 for closure costs related to a coal mine; and a $3 net charge for various items. On January 22, 2019, the workforce at the Company’s Avilés and La Coruña aluminum facilities in Spain ratified an agreement between Alcoa Corporation and the workers’ representatives related to the Company’s initiation of a collective dismissal process in October 2018. As part of the agreement, the two facilities’ smelters, with a combined remaining operating capacity of 124 kmt, were curtailed in February 2019 and are being maintained in restart condition through June 30, 2019, in the event that third parties have interest in acquiring the facilities. The casthouse at each facility and the paste plant at La Coruña remain in operation. Restructuring charges recorded in the first quarter related to this process included asset impairments of $80, employee-related costs of $15 and contract termination costs of $8. Additional charges recorded in the first quarter included a $15 write down of remaining inventories to their net realizable value, which was recorded in Cost of goods sold, and $2 in miscellaneous charges recorded in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations. Alcoa Corporation expects to incur additional charges to fulfill the agreement’s social plan, which includes severance plans, early retirement benefits, and potential employee relocation to the Company’s San Ciprián (Spain) facility, or to execute a third-party acquisition of the facilities. Such charges are expected to be recorded in the second quarter of 2019 and are estimated to range from $70 to $125 (pre- and after-tax), depending on the outcome of the collective dismissal process. Approximately 75 percent would be cash outlays in 2019. In the first quarter of 2018, Alcoa Corporation recorded a net benefit of $19 in Restructuring and other charges, net, which was comprised of a $23 net gain related to the curtailment of certain pension and other postretirement employee benefits and a $4 charge for additional contract costs related to the curtailed Wenatchee (Washington) smelter. Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: First quarter ended March 31, 2019 2018 Bauxite $ 1 $ — Alumina 1 (1 ) Aluminum 107 5 Segment total 109 4 Corporate 4 (23 ) Total Restructuring and other charges, net $ 113 $ (19 ) The activity related to layoff costs and other costs included within the restructuring reserve balances is as follows: Layoff costs Other costs Total Balance at December 31, 2017 $ 11 $ 34 $ 45 Cash payments (7 ) (95 ) (102 ) Restructuring and other charges, net 2 117 119 Other (1) (1 ) (14 ) (15 ) Balance at December 31, 2018 5 42 47 Cash payments (3 ) (11 ) (14 ) Restructuring and other charges, net 2 28 30 Other (1) — (2 ) (2 ) Balance at March 31, 2019 $ 4 $ 57 $ 61 (1) Other includes reversals of previously recorded restructuring charges, the effects of foreign currency translation, and reclassifications to other reserves, primarily asset retirement obligations and environmental remediation obligations. The noncurrent portion of the reserve at March 31, 2019 is $11, of which $8 is expected to be paid in 2020 related to the Portovesme smelter. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | D. Segment Information – The operating results of Alcoa Corporation’s reportable segments were as follows (differences between segment totals and consolidated amounts are in Corporate): Bauxite Alumina Aluminum Total First quarter ended March 31, 2019 Sales: Third-party sales $ 65 $ 897 $ 1,735 $ 2,697 Intersegment sales 236 417 3 656 Total sales $ 301 $ 1,314 $ 1,738 $ 3,353 Segment Adjusted EBITDA $ 126 $ 372 $ (96 ) $ 402 Supplemental information: Depreciation, depletion, and amortization $ 28 $ 48 $ 89 $ 165 Equity income (loss) $ — $ 12 $ (22 ) $ (10 ) First quarter ended March 31, 2018 Sales: Third-party sales $ 47 $ 914 $ 2,111 $ 3,072 Intersegment sales 249 454 4 707 Total sales $ 296 $ 1,368 $ 2,115 $ 3,779 Segment Adjusted EBITDA $ 110 $ 392 $ 187 $ 689 Supplemental information: Depreciation, depletion, and amortization $ 29 $ 53 $ 106 $ 188 Equity loss $ — $ (1 ) $ — $ (1 ) The following table reconciles total Segment Adjusted EBITDA to consolidated net (loss) income attributable to Alcoa Corporation: First quarter ended March 31, 2019 2018 Total Segment Adjusted EBITDA (1) $ 402 $ 689 Unallocated amounts: Transformation (2) 2 (2 ) Intersegment eliminations (1),(3) 86 76 Corporate expenses (4) (24 ) (27 ) Provision for depreciation, depletion, and amortization (172 ) (194 ) Restructuring and other charges, net (C) (113 ) 19 Interest expense (30 ) (26 ) Other expenses, net (N) (41 ) (21 ) Other (5) (18 ) (23 ) Consolidated income before income taxes 92 491 Provision for income taxes (150 ) (151 ) Net income attributable to noncontrolling interest (141 ) (145 ) Consolidated net (loss) income attributable to Alcoa Corporation $ (199 ) $ 195 (1) As of January 1, 2019, the Company changed its accounting method for valuing certain inventories from LIFO to average cost. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented. (2) Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. ( 3 ) Concurrent with the change in inventory accounting method as of January 1, 2019, 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. Corporate inventory accounting previously included the impact of LIFO, metal price lag and intersegment eliminations. The impact of LIFO has been eliminated with the change in inventory method. Metal price lag attributable to the Company’s rolled operations business is now netted within the Aluminum segment to simplify presentation of an impact that nets to zero in consolidation. Only intersegment eliminations remain as a reconciling line item and are labeled as such. (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. The following table details Alcoa Corporation’s Sales by product division: First quarter ended March 31, 2019 2018 Primary aluminum $ 1,394 $ 1,647 Alumina 897 913 Flat-rolled aluminum 312 429 Energy 69 73 Bauxite 58 45 Other (1) (11 ) (17 ) $ 2,719 $ 3,090 (1) Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | E. Earnings Per Share – Basic earnings per share (EPS) amounts are computed by dividing earnings by the average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. The information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (shares in millions): First quarter ended March 31, 2019 2018 Net (loss) income attributable to Alcoa Corporation $ (199 ) $ 195 Average shares outstanding – basic 185 186 Effect of dilutive securities: Stock options — 1 Stock units — 1 Average shares outstanding – diluted 185 188 In the first quarter of 2019, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive since Alcoa Corporation generated a net loss. As a result, five million stock units and stock options combined were not included in the computation of diluted EPS. Had Alcoa Corporation generated net income in the first quarter of 2019, one million common share equivalents related to stock units and stock options combined would have been included in diluted average shares outstanding. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | F. 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 First quarter ended March 31, First quarter ended March 31, 2019 2018 2019 2018 Pension and other postretirement benefits (I) Balance at beginning of period $ (2,283 ) $ (2,786 ) $ (46 ) $ (47 ) Other comprehensive income: Unrecognized net actuarial (loss) gain and prior service cost/benefit (4 ) 75 — 1 Tax benefit (expense) 1 (8 ) — (1 ) Total Other comprehensive (loss) income before reclassifications, net of tax (3 ) 67 — — Amortization of net actuarial loss and prior service cost/benefit ( 1) 45 36 1 1 Tax expense ( 2) (1 ) (2 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax ( 6) 44 34 1 1 Total Other comprehensive income 41 101 1 1 Balance at end of period (2,242 ) (2,685 ) (45 ) (46 ) Foreign currency translation Balance at beginning of period (2,071 ) (1,467 ) (810 ) (581 ) Other comprehensive (loss) income ( 3) (22 ) 1 2 (14 ) Balance at end of period (2,093 ) (1,466 ) (808 ) (595 ) Cash flow hedges (J) Balance at beginning of period (211 ) (929 ) 31 51 Other comprehensive (loss) income: Net change from periodic revaluations (352 ) 635 27 (20 ) Tax benefit (expense) 66 (99 ) (8 ) 6 Total Other comprehensive (loss) income before reclassifications, net of tax (286 ) 536 19 (14 ) Net amount reclassified to earnings: Aluminum contracts ( 4) 13 27 — — Financial contracts ( 5) (26 ) (13 ) (18 ) (9 ) Foreign exchange contracts ( 4) 4 (1 ) — — Sub-total (9 ) 13 (18 ) (9 ) Tax benefit ( 2) 7 1 5 3 Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax ( 6) (2 ) 14 (13 ) (6 ) Total Other comprehensive (loss) income (288 ) 550 6 (20 ) Balance at end of period (499 ) (379 ) 37 31 Total Accumulated other comprehensive loss $ (4,834 ) $ (4,530 ) $ (816 ) $ (610 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note I). (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, 2 4, and 5. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments | G. Investments – A summary of unaudited financial information for Alcoa Corporation’s equity investments is as follows (amounts represent 100% of investee financial information): First quarter ended March 31, 2019 2018 Sales $ 1,263 $ 1,253 Cost of goods sold 1,045 960 Net (loss) income (48 ) 65 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | H. Inventories March 31, 2019 December 31, 2018 Finished goods $ 304 $ 346 Work-in-process 297 189 Bauxite and alumina 525 609 Purchased raw materials 528 529 Operating supplies 145 146 $ 1,799 $ 1,819 As of January 1, 2019, the Company changed its method for valuing certain of its inventories held in the United States and Canada to the average cost method of accounting from the LIFO method. Inventories held by other subsidiaries of the parent company were previously, and continue to be, valued principally using the average cost method. Management believes that the change in accounting is preferable as it results in a consistent method to value inventory across all regions of the business, it improves comparability with industry peers, and it more closely resembles the physical flow of inventory. The effects of the change in accounting principle from LIFO to average cost have been retrospectively applied to all periods presented. This change resulted in a favorable adjustment to Retained earnings of $205 and an unfavorable adjustment to Noncontrolling interest of $35 as of January 1, 2018. In addition, certain financial statement line items in the Company’s Statement of Consolidated Operations, Statement of Consolidated Comprehensive Income, and Statement of Consolidated Cash Flows for the three months ended March 31, 2018 and Consolidated Balance Sheet as of December 31, 2018 were adjusted as follows: As Originally Reported Effect of Change As Adjusted Statement of Consolidated Operations for the first quarter ended March 31, 2018: Cost of goods sold $ 2,381 $ (79 ) $ 2,302 Provision for income taxes 138 13 151 Net income 274 66 340 Net income attributable to noncontrolling interest 124 21 145 Net income attributable to Alcoa Corporation 150 45 195 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 0.81 $ 0.24 $ 1.05 Diluted 0.80 0.24 1.04 Statement of Consolidated Comprehensive Income for the first quarter ended March 31, 2018: Comprehensive income $ 893 $ 66 $ 959 Comprehensive income attributable to Alcoa Corporation 802 45 847 Comprehensive income attributable to noncontrolling interest 91 21 112 Consolidated Balance Sheet as of December 31, 2018: Inventories $ 1,644 $ 175 $ 1,819 Prepaid expenses and other current assets 301 19 320 Retained earnings 341 229 570 Noncontrolling interest 2,005 (35 ) 1,970 Statement of Consolidated Cash Flows for the three months ended March 31, 2018: Net income $ 274 $ 66 $ 340 Deferred income taxes (11 ) 13 2 (Increase) in inventories (169 ) (79 ) (248 ) The following table compares the amounts that would have been reported under LIFO with the amounts recorded under the average cost method in the Consolidated Financial Statements as of March 31, 2019 and for the three months then ended: As Computed under LIFO As Reported under Average Cost Effect of Change Statement of Consolidated Operations for the first quarter ended March 31, 2019: Cost of goods sold $ 2,228 $ 2,180 $ (48 ) Provision for income taxes 137 150 13 Net loss (93 ) (58 ) 35 Net income attributable to noncontrolling interest 127 141 14 Net loss attributable to Alcoa Corporation (220 ) (199 ) 21 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ (1.19 ) $ (1.07 ) $ 0.12 Diluted (1.19 ) (1.07 ) 0.12 Statement of Consolidated Comprehensive Income for the first quarter ended March 31, 2019: Comprehensive loss $ (353 ) $ (318 ) $ 35 Comprehensive income attributed to noncontrolling interest 136 150 14 Comprehensive loss attributable to Alcoa Corporation $ (489 ) $ (468 ) $ 21 Consolidated Balance Sheet as of March 31, 2019: Inventories $ 1,579 $ 1,799 $ 220 Prepaid expenses and other current assets 276 285 9 Retained earnings 121 371 250 Noncontrolling interest 1,947 1,926 (21 ) Statement of Consolidated Cash Flows for the three months ended March 31, 2019: Net loss $ (93 ) $ (58 ) $ 35 Deferred income taxes 20 33 13 Decrease (Increase) in inventories 65 17 (48 ) |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | I. Pension and Other Postretirement Benefits – The components of net periodic benefit cost were as follows: Pension benefits Other postretirement benefits First quarter ended March 31, 2019 2018 2019 2018 Service cost $ 12 $ 14 $ 1 $ 1 Interest cost ( 1) 56 59 8 9 Expected return on plan assets ( 1) (81 ) (90 ) — — Recognized net actuarial loss ( 1) 42 55 3 3 Amortization of prior service cost ( 1) 1 2 — — Curtailments ( 2) — 5 — (28 ) Net periodic benefit cost $ 30 $ 45 $ 12 $ (15 ) (1) These amounts were reported in Other expenses, net on the accompanying Statement of Consolidated Operations (see Note N). (2) These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations (see Note C). |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Derivatives and Other Financial Instruments | J. Derivatives and Other Financial Instruments Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Derivatives Alcoa Corporation is exposed to certain risks relating to its ongoing business operations, including the risks of changing commodity prices and foreign currency exchange rates. Alcoa Corporation’s commodity and derivative activities include aluminum, energy, and foreign exchange contracts which are held for purposes other than trading. They are used primarily to mitigate uncertainty and volatility, and to cover underlying exposures. Alcoa Corporation is not involved in trading activities for energy, weather derivatives, or other nonexchange commodity trading activities. Several of Alcoa Corporation’s aluminum, energy, and foreign exchange contracts are classified as Level 1 or Level 2 under the fair value hierarchy. The total fair value of these derivative contracts recorded as assets and liabilities was $2 and $49, respectively, at March 31, 2019 and $2 and $54, respectively, at December 31, 2018. 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 $8 in the first quarter of 2019 and an unrealized gain of $68 in the first quarter of 2018 in Other comprehensive (loss) income. Additionally, Alcoa Corporation reclassified a realized loss of $4 and $1 in 2019 and 2018, respectively, from Accumulated other comprehensive (loss) income 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. Alcoa Corporation had a power contract at one of its facilities which expired in March 2019 that indexed the price of power to the London Metal Exchange (LME) price of aluminum plus the Midwest premium. Prior to its expiration, this embedded derivative was valued using the interrelationship of future metal prices (LME base plus Midwest premium) and the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum at the smelter. Management elected not to qualify the embedded derivative for hedge accounting treatment. In March 2019, Alcoa and the counterparty to the power contract described above entered into a new power contract which also contains an embedded derivative that indexes the price of power to the LME price of aluminum plus the Midwest premium. The embedded aluminum derivative is valued using the interrelationship of future metal prices (LME base plus Midwest premium) and the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum at the smelter. An overall increase in actual LME price and the Midwest premium will result in a higher cost of power and a corresponding decrease to the derivative asset or increase to the derivative liability. The embedded derivative has been designated as a cash flow hedge of forward sales of aluminum. Unrealized gains and losses will be included in Other comprehensive (loss) income on the accompanying Consolidated Balance Sheet while realized gains and losses will be included in Sales on the accompanying Statement of Consolidated Operations. The following table presents quantitative information related to the significant unobservable inputs for Level 3 derivative instruments: Fair value at Unobservable input Range ($ in full amounts) Assets: Financial contract 137 Interrelationship of forward energy price and the Consumer Price Index and price of electricity beyond forward curve Electricity: $73.13 per megawatt hour in 2019 to $55.02 per megawatt hour in 2021 Liabilities: Embedded aluminum derivative 267 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,900 per metric ton in 2019 to $2,445 per metric ton in 2027 Electricity: rate of 4 million megawatt hours per year Embedded aluminum derivatives 320 Price of aluminum beyond forward curve Aluminum: $2,533 per metric ton in July 2029 to $2,553 per metric ton in December 2029 (two contracts) and $2,850 per metric ton in 2036 (one contract) Midwest premium: $0.1900 per pound in 2019 to $0.1850 per pound in 2029 (two contracts) and 2036 (one contract) Embedded aluminum derivative - Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,900 per metric ton in April 2019 to $1,911 per metric ton in June 2019 Midwest premium: $0.1900 per pound in April 2019 and June 2019 Electricity: rate of 2 million megawatt hours per year Embedded aluminum derivative 7 Interrelationship of LME price to overall energy price Aluminum: $1,857 per metric ton in April 2019 to $1,954 per metric ton in December 2019 Embedded credit derivative 21 Estimated spread between the respective 30-year debt yield of Alcoa Corporation and the counterparty 3.25% (30-year debt yields: Alcoa Corporation – 7.21% (estimated) and counterparty – 3.96%) The fair values of Level 3 derivative instruments recorded as assets and liabilities in the accompanying Consolidated Balance Sheet were as follows: March 31, 2019 December 31, 2018 Asset Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Financial contract $ 69 $ 70 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives — 41 Financial contract 68 42 Total derivatives designated as hedging instruments 137 153 Total Asset Derivatives $ 137 $ 153 Liability Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivatives $ 59 $ 46 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives 535 218 Total derivatives designated as hedging instruments 594 264 Derivatives not designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivative — 5 Embedded credit derivative 4 4 Fair value of derivative instruments – noncurrent: Embedded credit derivative 17 16 Total derivatives not designated as hedging instruments 21 25 Total Liability Derivatives $ 615 $ 289 The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities First quarter ended March 31, 2019 Embedded aluminum derivatives Financial contracts Embedded aluminum derivatives Embedded credit derivative Balance at January 1, 2019 $ 41 $ 112 $ 269 $ 20 Total gains or losses (realized and unrealized) included in: Sales — — (13 ) — Cost of goods sold — (42 ) — — Other expenses, net — — (2 ) 1 Other comprehensive (loss) income (41 ) 68 344 — Other (1 ) (4 ) — Balance at March 31, 2019 $ — $ 137 $ 594 $ 21 Change in unrealized gains or losses included in earnings for derivative instruments held at March 31, 2019: Other expenses, net $ — $ — $ (2 ) $ 1 In the first quarter of 2019, there was an expiration of an existing and an issuance of a new embedded aluminum derivative (see above). There were no purchases, sales or settlements of Level 3 derivative instruments. Additionally, there were no transfers of derivative instruments into or out of Level 3. Derivatives Designated As Hedging Instruments – Cash Flow Hedges Alcoa Corporation has six Level 3 embedded aluminum derivatives and one Level 3 financial contract that have been designated as cash flow hedges. At March 31, 2019 and December 31, 2018, these embedded aluminum derivatives hedge forecasted aluminum sales of 2,496 kmt and 2,508 kmt, respectively. Assuming market rates remain constant with the rates at March 31, 2019, a realized loss of $59 is expected to be recognized in Sales over the next 12 months. There was no ineffectiveness related to these six derivative instruments in the first quarter of 2019 and 2018. At March 31, 2019 and December 31, 2018, the financial contract hedges forecasted electricity purchases of 5,742,396 and 6,348,276 megawatt hours, respectively. Assuming market rates remain consistent with the rates at March 31, 2019, a realized gain of $69 is expected to be recognized in Cost of goods sold over the next 12 months. There was no ineffectiveness related to this derivative instrument in the first quarter of 2019. The amount of hedge ineffectiveness related to this derivative instrument was not material in the first quarter of 2018. 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: March 31, 2019 December 31, 2018 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 1,017 $ 1,017 $ 1,113 $ 1,113 Restricted cash 3 3 3 3 Long-term debt due within one year 1 1 1 1 Long-term debt, less amount due within one year 1,802 1,939 1,801 1,863 The following methods were used to estimate the fair values of other financial instruments: Cash and cash equivalents and Restricted cash. The carrying amounts approximate fair value because of the short maturity of the instruments. The fair value amounts for Cash and cash equivalents and Restricted cash were classified in Level 1 of the fair value hierarchy. Long-term debt due within one year and Long-term debt, less amount due within one year. The fair value was based on quoted market prices for public debt and on interest rates that are currently available to Alcoa Corporation for issuance of debt with similar terms and maturities for non-public debt. The fair value amounts for all Long-term debt were classified in Level 2 of the fair value hierarchy. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | K. Income Taxes – The effective tax rate was 162.4% and 30.9% for the first quarter of 2019 and 2018, respectively. Alcoa Corporation’s estimated annual effective tax rate for 2019 was 72.2% as of March 31, 2019. This rate differs from the U.S. federal statutory rate of 21% primarily due to foreign income taxed in higher rate jurisdictions, as well as by domestic losses and foreign losses in countries with full valuation reserves resulting in no tax benefit. For the first quarter of 2019, the Provision for income taxes of $150 included two components: (i) the application of the estimated annual tax rate of 72.2% to pre-tax income of $92 ($67), and (ii) an unfavorable tax impact related to the interim period treatment of operational losses in certain jurisdictions for which no tax benefit was recognized ($83). For the first quarter of 2018, the Provision for income taxes of $151 included two components: (i) the application of the estimated annual tax rate of 30.5% to pre-tax income of $491 ($150), and (ii) an unfavorable tax impact related to the interim period treatment of operational losses in certain jurisdictions for which no tax benefit was recognized ($1). The rate for the first quarter of 2018 differs from the U.S. federal statutory rate of 21% primarily due to foreign income taxed in higher rate jurisdictions, as well as by domestic losses and foreign losses in countries with full valuation reserves resulting in no tax benefit. |
Leasing
Leasing | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leasing | L. Leasing As a result of adoption of ASU No. 2016-02, Leases, management recorded a right-of-use asset and lease liability, each in the amount of $201, on Alcoa Corporation’s Consolidated Balance Sheet as of January 1, 2019 for several types of operating leases, including land and buildings, alumina refinery process control technology, plant equipment, vehicles, and computer equipment. These amounts are equivalent to the aggregate future lease payments on a discounted basis. The leases have remaining terms of one to 39 years. The discount rate applied to these leases is the Company’s incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments, unless there is a rate implicit in the lease agreement. Lease expense for the three months ended March 31, 2019, includes costs from operating leases of $19, short-term rental expense of $3 and variable lease payments of $3. New leases added during the three months ended March 31, 2019 were not material. The Company does not have material financing leases. The following represents the aggregate right-of use assets and related lease obligations as of March 31, 2019: Amounts recognized in the Consolidated Balance Sheet at March 31, 2019: Properties, plants and equipment, net $ 185 Other current liabilities 66 Other noncurrent liabilities and deferred credits 119 Total operating lease liabilities $ 185 The weighted average lease term and weighted average discount rate as of March 31, 2019 were as follows: Weighted average lease term Operating leases 4.2 years Weighted average discount rate Operating leases 6.1 % The future cash flows related to the operating lease obligations as of March 31, 2019 were as follows: Year Ending December 31, Operating leases 2019 (excluding the three months ended March 31) $ 59 2020 64 2021 48 2022 17 2023 9 Thereafter 20 Total lease payments (undiscounted) 217 Less: discount to net present value (32 ) Total $ 185 Disclosures related to periods presented prior to the adoption of ASU No. 2016-02 The Company adopted ASU No. 2016-02, Leases, on January 1, 2019 using the modified retrospective approach which requires the following disclosure for periods presented prior to adoption. The following table represents minimum annual lease commitments as of December 31, 2018 under long-term operating leases: Year Ending December 31, Operating leases 2019 $ 74 2020 56 2021 42 2022 11 2023 5 Thereafter 21 Total lease payments $ 209 |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | M. Contingencies and Commitments Contingencies Environmental Matters Alcoa Corporation participates in environmental assessments and cleanups at several locations. These include currently or previously owned or operated facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. A liability is recorded for environmental remediation when a cleanup program becomes probable and the costs can be reasonably estimated. As assessments and cleanups proceed, the liability is adjusted based on progress made in determining the extent of remedial actions and related costs. The liability can change substantially due to factors such as, among others, the nature and extent of contamination, changes in remedial requirements, and technology advancements. Alcoa Corporation’s environmental remediation reserve balance reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. The following table details the changes in the carrying value of recorded environmental remediation reserves: Balance at December 31, 2017 $ 294 Cash payments (25 ) Liabilities incurred 19 Reversals of previously recorded liabilities (3 ) Foreign currency translation and other (5 ) Balance at December 31, 2018 280 Cash payments (3 ) Liabilities incurred 1 Reversals of previously recorded liabilities (1 ) Foreign currency translation and other (1 ) Balance at March 31, 2019 $ 276 At March 31, 2019 and December 31, 2018, the current portion of Alcoa Corporation’s environmental remediation reserve balance was $33 and $44, respectively. In the first quarter of 2018, the remediation reserve was increased by an immaterial amount. The changes to the remediation reserve were recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. The estimated timing of cash outflows on the environmental remediation reserve at March 31, 2019 is as follows: 2019 $ 30 2020 - 2024 126 Thereafter 120 Total $ 276 Reserve balances at March 31, 2019 and December 31, 2018 associated with significant sites with active remediation underway or for future remediation were $212 and $214, respectively. In management’s judgment, the Company’s reserves are sufficient to satisfy the provisions of the respective action plans. Upon changes in facts or circumstances, a change to the reserve may be required. The Company’s significant sites include: Pocos de Caldas, Brazil— Associated with the 2015 closure of the Alcoa Alumínio S.A. smelter in Pocos de Caldas, Brazil, an environmental remediation reserve was established for remediation of historic spent potlining storage and disposal areas. The final remediation plan is currently under review; such review could require the reserve balance to be adjusted. Fusina and Portovesme, Italy— Alcoa Corporation’s subsidiary Alcoa Trasformazioni S.r.l. (Trasformazioni) has remediation projects underway for its closed smelter sites at Fusina (Italy) and Portovesme (Italy). Cleanup plans at both sites have been approved by the Italian Ministry of Environment and Protection of Land and Sea (MOE). For the Fusina site, Trasformazioni began work on a soil remediation project in October 2017 and expects to complete the project by the end of 2019. Additionally, Trasformazioni agreed to make annual payments to MOE over a 10-year period, ending in 2024, for groundwater emergency containment and natural resource damages related to the Fusina site. For the Portovesme site, Trasformazioni began work on a soil remediation project in mid-2016 and expects it to be complete by the end of 2019. Additionally, Trasformazioni participates in a groundwater remediation project which will not have a final remedial design completed until mid-2019; such design conclusion may result in a change to the existing reserve for Portovesme . Suriname— Associated with the 2017 closure of the Suralco refinery and bauxite mine, an environmental remediation reserve was established for treatment and disposal of refinery waste and soil remediation. The work began in 2017 and is expected to be completed at the end of 2025. Hurricane Creek, Arkansas— The Company, through its subsidiaries, operated two mining areas and refineries near Hurricane Creek, Arkansas, before their closure in 1990. In accordance with regulations, the Company is responsible for ongoing monitoring and maintenance for water quality surrounding the mine areas and residue disposal areas. In instances where the Company has ongoing monitoring and maintenance responsibilities, it is Alcoa’s policy is to maintain a reserve equal to five years of expected costs. Massena, New York— Associated with the closure of the Massena East smelter by the Company’s subsidiary, Reynolds Metals Company, in 2015, an environmental remediation reserve was established for subsurface soil remediation to be performed after demolition of the structures. Remediation work is expected to commence in 2020 and will take four to eight years to complete. Sherwin, Texas —In connection with the 2018 settlement of a dispute related to the previously-owned Sherwin alumina refinery, the Company’s subsidiary, Copano Enterprises LLC, accepted responsibility for the final closure of four bauxite residue waste disposal areas (known as the Copano facility). Work commenced on the first residue bed in 2018 and will take eight to twelve years to complete, depending on the nature of its potential re-use. Work on the next three beds has not commenced but is expected to be completed by 2048, depending on its potential re-use. See Sherwin in the Other section below for a complete description of this matter. Longview, Washington— In connection with a 2018 Consent Decree and Cleanup Action Plan with the State of Washington Department of Ecology, the Company’s subsidiary, Northwest Alloys, accepted certain responsibilities for future remediation of contaminated soil and sediments at the site located near Longview, Washington. Other Sites— The Company is in the process of decommissioning various other plants in several countries. As a result, redeveloping these sites for reuse or returning the land to a natural state requires the performance of certain remediation activities. In aggregate, there are approximately 35 remediation projects planned or underway. These activities will be completed at various times in the future with the latest expected to be in 2026, after which ongoing monitoring and other activities may be required. At March 31, 2019 and December 31, 2018, the reserve balance associated with these activities was $64 and $66, respectively. Tax Spain —In July 2013, following a corporate income tax audit covering the 2006 through 2009 tax years, an assessment was received from Spain’s tax authorities disallowing certain interest deductions claimed by ParentCo’s Spanish consolidated tax group. ParentCo filed an appeal of this assessment and provided financial assurance in the form of both a bank guarantee (Arconic) and a lien secured with the San Ciprian smelter (Alcoa Corporation) to Spain’s tax authorities. In January 2015, Spain’s Central Tax Administrative Court denied ParentCo’s appeal of this assessment. Two months later, ParentCo filed an appeal of the assessment in Spain’s National Court (the National Court). The amount of this assessment, including interest, was $152 (€131) as of June 30, 2018. 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 November 8, 2018, the Companies filed a petition for appeal to Spain’s Supreme Court, to which Spain’s tax authorities have filed their opposition. In March 2019, the Spanish Supreme Court accepted the Companies’ petition for appeal which allowed the Companies to prepare and submit an appeal on May 6, 2019. Notwithstanding the appeal process, based on a review of the basis on which the National Court decided this matter, Alcoa Corporation management no longer believed that the Companies were more likely than not (greater than 50%) to prevail in this matter. Accordingly, in the third quarter of 2018, Alcoa Corporation recorded a charge of $30 (€26) in Provision for income taxes to establish a liability for its 49% share of the estimated loss in this matter, representing management’s best estimate at the time. As the appeal progresses or when the Companies receive an updated assessment from Spain’s tax authorities, management may revise its estimated liability. Separately, in January 2017, the National Court issued a decision in favor of the former Spanish consolidated tax group related to a similar assessment for the 2003 through 2005 tax years, effectively making that assessment null and void. Additionally, in August 2017, in lieu of receiving a formal assessment, the Companies reached a settlement with Spain’s tax authorities for the 2010 through 2013 tax years that had been under audit for a similar matter. Alcoa Corporation’s share of this settlement was not material to the Company’s Consolidated Financial Statements. The ultimate outcomes related to the 2003 through 2005 and the 2010 through 2013 tax years are not indicative of the potential ultimate outcome of the assessment for the 2006 through 2009 tax years due to procedural differences. Also, it is possible that the Companies may receive similar assessments for tax years subsequent to 2013; however, management does not expect any such assessment, if received, to be material to Alcoa Corporation’s Consolidated Financial Statements. Brazil (AWAB) —In March 2013, AWAB was notified by the Brazilian Federal Revenue Office (RFB) that approximately $110 (R$220) of value added tax credits previously claimed are being disallowed and a penalty of 50% assessed. Of this amount, AWAB received $41 (R$82) in cash in May 2012. The value-added tax credits were claimed by AWAB for both fixed assets and export sales related to the Juruti bauxite mine and São Luís refinery expansion. The RFB has disallowed credits they allege belong to the consortium in which AWAB owns an interest and should not have been claimed by AWAB. Credits have also been disallowed as a result of challenges to apportionment methods used, questions about the use of the credits, and an alleged lack of documented proof. AWAB presented defense of its claim to the RFB on April 8, 2013. If AWAB is successful in this administrative process, the RFB would have no further recourse. If unsuccessful in this process, AWAB has the option to litigate at a judicial level. Separately from AWAB’s administrative appeal, in June 2015, new tax law was enacted repealing the provisions in the tax code that were the basis for the RFB assessing a 50% penalty in this matter. As such, the estimated range of reasonably possible loss is $0 to $27 (R$103), whereby the maximum end of the range represents the portion of the disallowed credits applicable to the export sales and excludes the 50% penalty. Additionally, the estimated range of disallowed credits related to AWAB’s fixed assets is $0 to $30 (R$117), which would increase the net carrying value of AWAB’s fixed assets if ultimately disallowed. It is management’s opinion that the allegations have no basis; however, at this time, the Company is unable to reasonably predict an outcome for this matter. 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. Under the terms of the divestiture, ParentCo agreed to retain responsibility for certain environmental obligations 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. In January 2016, Sherwin Alumina Company, LLC (Sherwin), a successor owner of the refinery previously owned by Reynolds, filed for bankruptcy due to its inability to continue its bauxite supply agreement. As a result of Sherwin’s bankruptcy filing, separate legal actions were initiated against Reynolds by Sherwin and Gregory Power. Sherwin : This matter sought to determine responsibility for remediation of environmental conditions at the Sherwin refinery site and related bauxite residue waste disposal areas (known as the Copano facility). In May 2018, Reynolds and Sherwin concluded a settlement agreement, which was accepted by the bankruptcy court in June 2018, that assigned to Reynolds all environmental liabilities associated with the Copano facility and assigned to Sherwin all environmental liabilities associated with the Sherwin refinery site. At March 31, 2019, the Company had a reserve of $38 for its share of environmental-related matters at Copano facility. (See Sherwin, Texas in Environmental Matters above.) Gregory Power : In January 2016, Gregory Power delivered notice to Reynolds that Sherwin’s bankruptcy filing constitutes a breach of the ESA. Since that time, various responses, complaints and motions have been actioned, including the addition of Allied Alumina LLC (Allied) to an amended complaint. (Sherwin operated as a subsidiary of Allied.) In May 2019, a settlement agreement was reached between Gregory Power, Allied and Reynolds in which all claims pending against the parties will be voluntarily dismissed. The settlement is conditioned on the execution of various commercial agreements, which are being finalized at this time. The settlement does not have an impact on the Consolidated Financial Statements. General In addition to the matters discussed above, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against Alcoa Corporation, including those pertaining to environmental, safety and health, commercial, tax, product liability, intellectual property infringement, employment, and employee and retiree benefit matters, and other actions and claims arising out of the normal course of business. While the amounts claimed in these other matters may be substantial, the ultimate liability is not readily determinable because of the considerable uncertainties that exist. Accordingly, it is possible that the Company’s liquidity or results of operations in a particular period could be materially affected by one or more of these other matters. However, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on the financial position of the Company. 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 March 31, 2019 and December 31, 2018, the carrying value of Alcoa Corporation’s investment in this joint venture was $863 and $874, 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 March 31, 2019), 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 company were effectively terminated. At both March 31, 2019 and December 31, 2018, the combined fair value of the guarantees was $1, 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, Net
Other Expenses, Net | 3 Months Ended |
Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Other Expenses, Net | N. Other Expenses, Net First quarter ended March 31, 2019 2018 Equity loss $ 12 $ 2 Foreign currency losses, net 12 3 Net gain from asset sales (8 ) (5 ) Net gain on mark-to-market derivative instruments (J) — (17 ) Non-service costs – Pension & OPEB (I) 29 38 Other (4 ) — $ 41 $ 21 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | A. – The interim Consolidated Financial Statements of Alcoa Corporation and its subsidiaries (Alcoa Corporation or the Company) are unaudited. These Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The 2018 year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which includes all disclosures required by GAAP. References in these Notes to ParentCo refer to Alcoa Inc., a Pennsylvania corporation, and its consolidated subsidiaries (through October 31, 2016, at which time it was renamed Arconic Inc. (Arconic)). 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 for the year ended December 31, 2018 for additional information. As of January 1, 2019, the Company changed its accounting method for valuing certain inventories from last-in, first-out (LIFO) to average cost. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented. See Note H for more information regarding the change in inventory accounting method. |
Principles of Consolidation | Principles of Consolidation. The Consolidated Financial Statements of Alcoa Corporation include the accounts of Alcoa Corporation and companies in which Alcoa Corporation has a controlling interest, including those that comprise the Alcoa World Alumina & Chemicals (AWAC) joint venture (see below). Intercompany transactions have been eliminated. The equity method of accounting is used for investments in affiliates and other joint ventures over which Alcoa Corporation has significant influence but does not have effective control. Investments in affiliates in which Alcoa Corporation cannot exercise significant influence are accounted for on the cost method. AWAC is an unincorporated global joint venture between Alcoa Corporation and Alumina Limited and consists of several affiliated operating entities, which own, or have an interest in, or operate the bauxite mines and alumina refineries within Alcoa Corporation’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and a portion of the São Luís refinery, all in Brazil) and the Portland smelter in Australia within Alcoa Corporation’s Aluminum segment. Alcoa Corporation owns 60% and Alumina Limited owns 40% of these individual entities, which are consolidated by the Company for financial reporting purposes and include Alcoa of Australia Limited, Alcoa World Alumina LLC (AWA), and Alcoa World Alumina Brasil Ltda. (AWAB). Alumina Limited’s interest in the equity of such entities is reflected as Noncontrolling interest on the accompanying Consolidated Balance Sheet. |
Restructuring and Other Charg_2
Restructuring and Other Charges, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Schedule Of Restructuring Charges, Net Before Income Tax Not Allocated To Reportable Segment | Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: First quarter ended March 31, 2019 2018 Bauxite $ 1 $ — Alumina 1 (1 ) Aluminum 107 5 Segment total 109 4 Corporate 4 (23 ) Total Restructuring and other charges, net $ 113 $ (19 ) |
Activity Related to Layoff Costs and Other Costs Included Within Restructuring Reserve | The activity related to layoff costs and other costs included within the restructuring reserve balances is as follows: Layoff costs Other costs Total Balance at December 31, 2017 $ 11 $ 34 $ 45 Cash payments (7 ) (95 ) (102 ) Restructuring and other charges, net 2 117 119 Other (1) (1 ) (14 ) (15 ) Balance at December 31, 2018 5 42 47 Cash payments (3 ) (11 ) (14 ) Restructuring and other charges, net 2 28 30 Other (1) — (2 ) (2 ) Balance at March 31, 2019 $ 4 $ 57 $ 61 (1) Other includes reversals of previously recorded restructuring charges, the effects of foreign currency translation, and reclassifications to other reserves, primarily asset retirement obligations and environmental remediation obligations. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results of Alcoa's Reportable Segments | The operating results of Alcoa Corporation’s reportable segments were as follows (differences between segment totals and consolidated amounts are in Corporate): Bauxite Alumina Aluminum Total First quarter ended March 31, 2019 Sales: Third-party sales $ 65 $ 897 $ 1,735 $ 2,697 Intersegment sales 236 417 3 656 Total sales $ 301 $ 1,314 $ 1,738 $ 3,353 Segment Adjusted EBITDA $ 126 $ 372 $ (96 ) $ 402 Supplemental information: Depreciation, depletion, and amortization $ 28 $ 48 $ 89 $ 165 Equity income (loss) $ — $ 12 $ (22 ) $ (10 ) First quarter ended March 31, 2018 Sales: Third-party sales $ 47 $ 914 $ 2,111 $ 3,072 Intersegment sales 249 454 4 707 Total sales $ 296 $ 1,368 $ 2,115 $ 3,779 Segment Adjusted EBITDA $ 110 $ 392 $ 187 $ 689 Supplemental information: Depreciation, depletion, and amortization $ 29 $ 53 $ 106 $ 188 Equity loss $ — $ (1 ) $ — $ (1 ) |
Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alco Corporation | The following table reconciles total Segment Adjusted EBITDA to consolidated net (loss) income attributable to Alcoa Corporation: First quarter ended March 31, 2019 2018 Total Segment Adjusted EBITDA (1) $ 402 $ 689 Unallocated amounts: Transformation (2) 2 (2 ) Intersegment eliminations (1),(3) 86 76 Corporate expenses (4) (24 ) (27 ) Provision for depreciation, depletion, and amortization (172 ) (194 ) Restructuring and other charges, net (C) (113 ) 19 Interest expense (30 ) (26 ) Other expenses, net (N) (41 ) (21 ) Other (5) (18 ) (23 ) Consolidated income before income taxes 92 491 Provision for income taxes (150 ) (151 ) Net income attributable to noncontrolling interest (141 ) (145 ) Consolidated net (loss) income attributable to Alcoa Corporation $ (199 ) $ 195 (1) As of January 1, 2019, the Company changed its accounting method for valuing certain inventories from LIFO to average cost. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented. (2) Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. ( 3 ) Concurrent with the change in inventory accounting method as of January 1, 2019, 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. Corporate inventory accounting previously included the impact of LIFO, metal price lag and intersegment eliminations. The impact of LIFO has been eliminated with the change in inventory method. Metal price lag attributable to the Company’s rolled operations business is now netted within the Aluminum segment to simplify presentation of an impact that nets to zero in consolidation. Only intersegment eliminations remain as a reconciling line item and are labeled as such. (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. |
Schedule of Sales by Product Division | The following table details Alcoa Corporation’s Sales by product division: First quarter ended March 31, 2019 2018 Primary aluminum $ 1,394 $ 1,647 Alumina 897 913 Flat-rolled aluminum 312 429 Energy 69 73 Bauxite 58 45 Other (1) (11 ) (17 ) $ 2,719 $ 3,090 (1) Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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): First quarter ended March 31, 2019 2018 Net (loss) income attributable to Alcoa Corporation $ (199 ) $ 195 Average shares outstanding – basic 185 186 Effect of dilutive securities: Stock options — 1 Stock units — 1 Average shares outstanding – diluted 185 188 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component | The following table details the activity of the three components that comprise Accumulated other comprehensive loss for both Alcoa Corporation’s shareholders and Noncontrolling interest: Alcoa Corporation Noncontrolling interest First quarter ended March 31, First quarter ended March 31, 2019 2018 2019 2018 Pension and other postretirement benefits (I) Balance at beginning of period $ (2,283 ) $ (2,786 ) $ (46 ) $ (47 ) Other comprehensive income: Unrecognized net actuarial (loss) gain and prior service cost/benefit (4 ) 75 — 1 Tax benefit (expense) 1 (8 ) — (1 ) Total Other comprehensive (loss) income before reclassifications, net of tax (3 ) 67 — — Amortization of net actuarial loss and prior service cost/benefit ( 1) 45 36 1 1 Tax expense ( 2) (1 ) (2 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax ( 6) 44 34 1 1 Total Other comprehensive income 41 101 1 1 Balance at end of period (2,242 ) (2,685 ) (45 ) (46 ) Foreign currency translation Balance at beginning of period (2,071 ) (1,467 ) (810 ) (581 ) Other comprehensive (loss) income ( 3) (22 ) 1 2 (14 ) Balance at end of period (2,093 ) (1,466 ) (808 ) (595 ) Cash flow hedges (J) Balance at beginning of period (211 ) (929 ) 31 51 Other comprehensive (loss) income: Net change from periodic revaluations (352 ) 635 27 (20 ) Tax benefit (expense) 66 (99 ) (8 ) 6 Total Other comprehensive (loss) income before reclassifications, net of tax (286 ) 536 19 (14 ) Net amount reclassified to earnings: Aluminum contracts ( 4) 13 27 — — Financial contracts ( 5) (26 ) (13 ) (18 ) (9 ) Foreign exchange contracts ( 4) 4 (1 ) — — Sub-total (9 ) 13 (18 ) (9 ) Tax benefit ( 2) 7 1 5 3 Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax ( 6) (2 ) 14 (13 ) (6 ) Total Other comprehensive (loss) income (288 ) 550 6 (20 ) Balance at end of period (499 ) (379 ) 37 31 Total Accumulated other comprehensive loss $ (4,834 ) $ (4,530 ) $ (816 ) $ (610 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note I). (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, 2 4, and 5. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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): First quarter ended March 31, 2019 2018 Sales $ 1,263 $ 1,253 Cost of goods sold 1,045 960 Net (loss) income (48 ) 65 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Inventory Components | March 31, 2019 December 31, 2018 Finished goods $ 304 $ 346 Work-in-process 297 189 Bauxite and alumina 525 609 Purchased raw materials 528 529 Operating supplies 145 146 $ 1,799 $ 1,819 |
Change in Accounting Principle from LIFO to Average Cost [Member] | |
Schedule of Effects of Change In Accounting Principle From LIFO to Average Cost | The effects of the change in accounting principle from LIFO to average cost have been retrospectively applied to all periods presented. This change resulted in a favorable adjustment to Retained earnings of $205 and an unfavorable adjustment to Noncontrolling interest of $35 as of January 1, 2018. In addition, certain financial statement line items in the Company’s Statement of Consolidated Operations, Statement of Consolidated Comprehensive Income, and Statement of Consolidated Cash Flows for the three months ended March 31, 2018 and Consolidated Balance Sheet as of December 31, 2018 were adjusted as follows: As Originally Reported Effect of Change As Adjusted Statement of Consolidated Operations for the first quarter ended March 31, 2018: Cost of goods sold $ 2,381 $ (79 ) $ 2,302 Provision for income taxes 138 13 151 Net income 274 66 340 Net income attributable to noncontrolling interest 124 21 145 Net income attributable to Alcoa Corporation 150 45 195 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 0.81 $ 0.24 $ 1.05 Diluted 0.80 0.24 1.04 Statement of Consolidated Comprehensive Income for the first quarter ended March 31, 2018: Comprehensive income $ 893 $ 66 $ 959 Comprehensive income attributable to Alcoa Corporation 802 45 847 Comprehensive income attributable to noncontrolling interest 91 21 112 Consolidated Balance Sheet as of December 31, 2018: Inventories $ 1,644 $ 175 $ 1,819 Prepaid expenses and other current assets 301 19 320 Retained earnings 341 229 570 Noncontrolling interest 2,005 (35 ) 1,970 Statement of Consolidated Cash Flows for the three months ended March 31, 2018: Net income $ 274 $ 66 $ 340 Deferred income taxes (11 ) 13 2 (Increase) in inventories (169 ) (79 ) (248 ) The following table compares the amounts that would have been reported under LIFO with the amounts recorded under the average cost method in the Consolidated Financial Statements as of March 31, 2019 and for the three months then ended: As Computed under LIFO As Reported under Average Cost Effect of Change Statement of Consolidated Operations for the first quarter ended March 31, 2019: Cost of goods sold $ 2,228 $ 2,180 $ (48 ) Provision for income taxes 137 150 13 Net loss (93 ) (58 ) 35 Net income attributable to noncontrolling interest 127 141 14 Net loss attributable to Alcoa Corporation (220 ) (199 ) 21 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ (1.19 ) $ (1.07 ) $ 0.12 Diluted (1.19 ) (1.07 ) 0.12 Statement of Consolidated Comprehensive Income for the first quarter ended March 31, 2019: Comprehensive loss $ (353 ) $ (318 ) $ 35 Comprehensive income attributed to noncontrolling interest 136 150 14 Comprehensive loss attributable to Alcoa Corporation $ (489 ) $ (468 ) $ 21 Consolidated Balance Sheet as of March 31, 2019: Inventories $ 1,579 $ 1,799 $ 220 Prepaid expenses and other current assets 276 285 9 Retained earnings 121 371 250 Noncontrolling interest 1,947 1,926 (21 ) Statement of Consolidated Cash Flows for the three months ended March 31, 2019: Net loss $ (93 ) $ (58 ) $ 35 Deferred income taxes 20 33 13 Decrease (Increase) in inventories 65 17 (48 ) |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost were as follows: Pension benefits Other postretirement benefits First quarter ended March 31, 2019 2018 2019 2018 Service cost $ 12 $ 14 $ 1 $ 1 Interest cost ( 1) 56 59 8 9 Expected return on plan assets ( 1) (81 ) (90 ) — — Recognized net actuarial loss ( 1) 42 55 3 3 Amortization of prior service cost ( 1) 1 2 — — Curtailments ( 2) — 5 — (28 ) Net periodic benefit cost $ 30 $ 45 $ 12 $ (15 ) (1) These amounts were reported in Other expenses, net on the accompanying Statement of Consolidated Operations (see Note N). (2) These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations (see Note C). |
Derivatives and Other Financi_2
Derivatives and Other Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 for Level 3 derivative instruments: Fair value at Unobservable input Range ($ in full amounts) Assets: Financial contract 137 Interrelationship of forward energy price and the Consumer Price Index and price of electricity beyond forward curve Electricity: $73.13 per megawatt hour in 2019 to $55.02 per megawatt hour in 2021 Liabilities: Embedded aluminum derivative 267 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,900 per metric ton in 2019 to $2,445 per metric ton in 2027 Electricity: rate of 4 million megawatt hours per year Embedded aluminum derivatives 320 Price of aluminum beyond forward curve Aluminum: $2,533 per metric ton in July 2029 to $2,553 per metric ton in December 2029 (two contracts) and $2,850 per metric ton in 2036 (one contract) Midwest premium: $0.1900 per pound in 2019 to $0.1850 per pound in 2029 (two contracts) and 2036 (one contract) Embedded aluminum derivative - Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,900 per metric ton in April 2019 to $1,911 per metric ton in June 2019 Midwest premium: $0.1900 per pound in April 2019 and June 2019 Electricity: rate of 2 million megawatt hours per year Embedded aluminum derivative 7 Interrelationship of LME price to overall energy price Aluminum: $1,857 per metric ton in April 2019 to $1,954 per metric ton in December 2019 Embedded credit derivative 21 Estimated spread between the respective 30-year debt yield of Alcoa Corporation and the counterparty 3.25% (30-year debt yields: Alcoa Corporation – 7.21% (estimated) and counterparty – 3.96%) |
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: March 31, 2019 December 31, 2018 Asset Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Financial contract $ 69 $ 70 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives — 41 Financial contract 68 42 Total derivatives designated as hedging instruments 137 153 Total Asset Derivatives $ 137 $ 153 Liability Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivatives $ 59 $ 46 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives 535 218 Total derivatives designated as hedging instruments 594 264 Derivatives not designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivative — 5 Embedded credit derivative 4 4 Fair value of derivative instruments – noncurrent: Embedded credit derivative 17 16 Total derivatives not designated as hedging instruments 21 25 Total Liability Derivatives $ 615 $ 289 |
Schedule of Reconciliation of Activity for Derivative Contracts | The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities First quarter ended March 31, 2019 Embedded aluminum derivatives Financial contracts Embedded aluminum derivatives Embedded credit derivative Balance at January 1, 2019 $ 41 $ 112 $ 269 $ 20 Total gains or losses (realized and unrealized) included in: Sales — — (13 ) — Cost of goods sold — (42 ) — — Other expenses, net — — (2 ) 1 Other comprehensive (loss) income (41 ) 68 344 — Other (1 ) (4 ) — Balance at March 31, 2019 $ — $ 137 $ 594 $ 21 Change in unrealized gains or losses included in earnings for derivative instruments held at March 31, 2019: Other expenses, net $ — $ — $ (2 ) $ 1 |
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: March 31, 2019 December 31, 2018 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 1,017 $ 1,017 $ 1,113 $ 1,113 Restricted cash 3 3 3 3 Long-term debt due within one year 1 1 1 1 Long-term debt, less amount due within one year 1,802 1,939 1,801 1,863 |
Leasing (Tables)
Leasing (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Aggregate Right-of Use Assets and Related Lease Obligations | The following represents the aggregate right-of use assets and related lease obligations as of March 31, 2019: Amounts recognized in the Consolidated Balance Sheet at March 31, 2019: Properties, plants and equipment, net $ 185 Other current liabilities 66 Other noncurrent liabilities and deferred credits 119 Total operating lease liabilities $ 185 |
Schedule of Weighted Average Lease Term and Weighted Average Discount Rate | The weighted average lease term and weighted average discount rate as of March 31, 2019 were as follows: Weighted average lease term Operating leases 4.2 years Weighted average discount rate Operating leases 6.1 % |
Schedule of Future Cash Flows Related to Operating Lease Obligations | The future cash flows related to the operating lease obligations as of March 31, 2019 were as follows: Year Ending December 31, Operating leases 2019 (excluding the three months ended March 31) $ 59 2020 64 2021 48 2022 17 2023 9 Thereafter 20 Total lease payments (undiscounted) 217 Less: discount to net present value (32 ) Total $ 185 |
Schedule of Minimum Annual Lease Commitments under Long-term Operating Leases | The following table represents minimum annual lease commitments as of December 31, 2018 under long-term operating leases: Year Ending December 31, Operating leases 2019 $ 74 2020 56 2021 42 2022 11 2023 5 Thereafter 21 Total lease payments $ 209 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Changes in Carrying Value of Recorded Environmental Remediation Reserves | The following table details the changes in the carrying value of recorded environmental remediation reserves: Balance at December 31, 2017 $ 294 Cash payments (25 ) Liabilities incurred 19 Reversals of previously recorded liabilities (3 ) Foreign currency translation and other (5 ) Balance at December 31, 2018 280 Cash payments (3 ) Liabilities incurred 1 Reversals of previously recorded liabilities (1 ) Foreign currency translation and other (1 ) Balance at March 31, 2019 $ 276 |
Schedule of Estimate Timing of Cash Outflows on Environmental Reserves | The estimated timing of cash outflows on the environmental remediation reserve at March 31, 2019 is as follows: 2019 $ 30 2020 - 2024 126 Thereafter 120 Total $ 276 |
Other Expenses, Net (Tables)
Other Expenses, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Expenses, Net | First quarter ended March 31, 2019 2018 Equity loss $ 12 $ 2 Foreign currency losses, net 12 3 Net gain from asset sales (8 ) (5 ) Net gain on mark-to-market derivative instruments (J) — (17 ) Non-service costs – Pension & OPEB (I) 29 38 Other (4 ) — $ 41 $ 21 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - AWAC [Member] | Mar. 31, 2019 |
Alumina Limited [Member] | |
Basis Of Presentation [Line Items] | |
Non-controlling interest, ownership percentage | 40.00% |
Alcoa Corporation [Member] | |
Basis Of Presentation [Line Items] | |
Ownership interest percentage | 60.00% |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Guidance - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | ||
Operating lease right-of-use assets | $ 185 | $ 201 |
Operating lease, liability | $ 185 | $ 201 |
Restructuring and Other Charg_3
Restructuring and Other Charges, Net - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019Smelterkt | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019 | Jun. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 113 | $ (19) | |||
Number of smelters | Smelter | 2 | ||||
Combined operating capacity | kt | 124 | ||||
Net gain related to curtailment of certain pension and other postretirement employee benefits | 23 | ||||
Noncurrent portion of the reserve | 11 | ||||
Noncurrent portion of reserve expected to be paid in 2020 | 8 | ||||
Scenario Forecast [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring-related charges cash percentage | 75.00% | ||||
Scenario Forecast [Member] | Minimum [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 70 | ||||
Restructuring charges, after-tax | 70 | ||||
Scenario Forecast [Member] | Maximum [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 125 | ||||
Restructuring charges, after-tax | $ 125 | ||||
Cost of Goods Sold [Member] | Alcoa Corporation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Write down of remaining inventories | 15 | ||||
Restructuring And Other Charges [Member] | Alcoa Corporation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment | 80 | ||||
Contract termination costs | 8 | ||||
Employee-related cost | 15 | ||||
Restructuring And Other Charges [Member] | Selling, General Administrative, and Other Expenses [Member] | Alcoa Corporation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Miscellaneous charges | 2 | ||||
Exit Cost [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 103 | ||||
Closure Cost [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 7 | ||||
Miscellaneous Items Charges [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 3 | ||||
Contract Termination [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 4 |
Restructuring and Other Charg_4
Restructuring and Other Charges, Net - Schedule of Restructuring and Other Charges by Reportable Segments, Pretax (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | $ 113 | $ (19) |
Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 109 | 4 |
Corporate [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 4 | (23) |
Bauxite [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 1 | |
Alumina [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 1 | (1) |
Aluminum Segment [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | $ 107 | $ 5 |
Restructuring and Other Charg_5
Restructuring and Other Charges,Net - Activity Related to Layoff Costs and Other Costs Included Within Restructuring Reserve (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | $ 47 | $ 45 |
Cash payments | (14) | (102) |
Restructuring and other charges, net | 30 | 119 |
Other | (2) | (15) |
Restructuring reserve ending balance | 61 | 47 |
Layoff Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 5 | 11 |
Cash payments | (3) | (7) |
Restructuring and other charges, net | 2 | 2 |
Other | (1) | |
Restructuring reserve ending balance | 4 | 5 |
Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 42 | 34 |
Cash payments | (11) | (95) |
Restructuring and other charges, net | 28 | 117 |
Other | (2) | (14) |
Restructuring reserve ending balance | $ 57 | $ 42 |
Segment Information - Schedule
Segment Information - Schedule of Operating Results of Alcoa's Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | $ 402 | $ 689 |
Depreciation, depletion, and amortization | 165 | 188 |
Equity income (loss) | (10) | (1) |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total sales | 3,353 | 3,779 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales | 656 | 707 |
Third-Party Sales [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Third-party sales | 2,697 | 3,072 |
Bauxite [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | 126 | 110 |
Depreciation, depletion, and amortization | 28 | 29 |
Bauxite [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total sales | 301 | 296 |
Bauxite [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales | 236 | 249 |
Bauxite [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Third-party sales | 65 | 47 |
Alumina [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | 372 | 392 |
Depreciation, depletion, and amortization | 48 | 53 |
Equity income (loss) | 12 | (1) |
Alumina [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total sales | 1,314 | 1,368 |
Alumina [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales | 417 | 454 |
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Third-party sales | 897 | 914 |
Aluminum [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | (96) | 187 |
Depreciation, depletion, and amortization | 89 | 106 |
Equity income (loss) | (22) | |
Aluminum [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total sales | 1,738 | 2,115 |
Aluminum [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales | 3 | 4 |
Aluminum [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Third-party sales | $ 1,735 | $ 2,111 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total Segment Adjusted EBITDA | $ 402 | $ 689 |
Transformation | 2 | (2) |
Intersegment eliminations | 86 | 76 |
Corporate expenses | (24) | (27) |
Provision for depreciation, depletion, and amortization | (172) | (194) |
Interest expense | (30) | (26) |
Other expenses, net (N) | (41) | (21) |
Income before income taxes | 92 | 491 |
Provision for income taxes | (150) | (151) |
Net income attributable to noncontrolling interest | (141) | (145) |
NET (LOSS) INCOME ATTRIBUTABLE TO ALCOA CORPORATION | (199) | 195 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges, net (C) | (113) | 19 |
Interest expense | (30) | (26) |
Other | $ (18) | $ (23) |
Segment Information - Schedul_3
Segment Information - Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alcoa Corporation (Parenthetical) (Detail) - Effects of Change in Accounting Principle from LIFO to Average Cost [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |
Adjusted EBITDA | $ 34 |
Increase in intersegment eliminations | $ 45 |
Segment and Related Information
Segment and Related Information - Schedule of Sales by Product Division (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Sales | $ 2,719 | $ 3,090 |
Primary Aluminum [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 1,394 | 1,647 |
Alumina [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 897 | 913 |
Flat-Rolled Aluminum [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 312 | 429 |
Energy [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 69 | 73 |
Bauxite [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 58 | 45 |
Other Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | $ (11) | $ (17) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net (loss) income attributable to Alcoa Corporation | $ (199) | $ 195 |
Average shares outstanding – basic | 185 | 186 |
Effect of dilutive securities: | ||
Stock options | 1 | |
Stock units | 1 | |
Average shares outstanding – diluted | 185 | 188 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - Stock Awards and Stock Options [Member] shares in Millions | 3 Months Ended |
Mar. 31, 2019shares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Number of anti-dilutive securities | 5 |
Common shares equivalents that would have been included in diluted average shares outstanding | 1 |
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 | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Pension and other postretirement benefits | |||
Total Other comprehensive income | $ 42 | $ 102 | |
Foreign currency translation | |||
Other comprehensive (loss) income | (20) | (13) | |
Cash flow hedges | |||
Total Other comprehensive (loss) income | (282) | 530 | |
Total Accumulated other comprehensive loss | (4,834) | $ (4,565) | |
Alcoa Corporation [Member] | |||
Pension and other postretirement benefits | |||
Balance at beginning of period | (2,283) | (2,786) | (2,786) |
Unrecognized net actuarial (loss) gain and prior service cost/benefit | (4) | 75 | |
Tax benefit (expense) | 1 | (8) | |
Total Other comprehensive (loss) income before reclassifications, net of tax | (3) | 67 | |
Amortization of net actuarial loss and prior service cost/benefit | 45 | 36 | |
Tax expense | (1) | (2) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 44 | 34 | |
Total Other comprehensive income | 41 | 101 | |
Balance at end of period | (2,242) | (2,685) | (2,283) |
Foreign currency translation | |||
Balance at beginning of period | (2,071) | (1,467) | (1,467) |
Other comprehensive (loss) income | (22) | 1 | |
Balance at end of period | (2,093) | (1,466) | (2,071) |
Cash flow hedges | |||
Balance at beginning of period | (211) | (929) | (929) |
Net change from periodic revaluations | (352) | 635 | |
Tax benefit (expense) | 66 | (99) | |
Total Other comprehensive (loss) income before reclassifications, net of tax | (286) | 536 | |
Net amount reclassified to earnings | (9) | 13 | |
Tax benefit | 7 | 1 | |
Total amount reclassified from Accumulated other comprehensive (loss)income, net of tax | (2) | 14 | |
Total Other comprehensive (loss) income | (288) | 550 | |
Balance at end of period | (499) | (379) | (211) |
Total Accumulated other comprehensive loss | (4,834) | (4,530) | |
Alcoa Corporation [Member] | Aluminum Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 13 | 27 | |
Alcoa Corporation [Member] | Financial Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | (26) | (13) | |
Alcoa Corporation [Member] | Foreign Exchange Contract [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 4 | (1) | |
Non-controlling Interest [Member] | |||
Pension and other postretirement benefits | |||
Balance at beginning of period | (46) | (47) | (47) |
Unrecognized net actuarial (loss) gain and prior service cost/benefit | 1 | ||
Tax benefit (expense) | (1) | ||
Amortization of net actuarial loss and prior service cost/benefit | 1 | 1 | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 1 | 1 | |
Total Other comprehensive income | 1 | 1 | |
Balance at end of period | (45) | (46) | (46) |
Foreign currency translation | |||
Balance at beginning of period | (810) | (581) | (581) |
Other comprehensive (loss) income | 2 | (14) | |
Balance at end of period | (808) | (595) | (810) |
Cash flow hedges | |||
Balance at beginning of period | 31 | 51 | 51 |
Net change from periodic revaluations | 27 | (20) | |
Tax benefit (expense) | (8) | 6 | |
Total Other comprehensive (loss) income before reclassifications, net of tax | 19 | (14) | |
Net amount reclassified to earnings | (18) | (9) | |
Tax benefit | 5 | 3 | |
Total amount reclassified from Accumulated other comprehensive (loss)income, net of tax | (13) | (6) | |
Total Other comprehensive (loss) income | 6 | (20) | |
Balance at end of period | 37 | 31 | $ 31 |
Total Accumulated other comprehensive loss | (816) | (610) | |
Non-controlling Interest [Member] | Financial Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | $ (18) | $ (9) |
Investments - Summary of Unaudi
Investments - Summary of Unaudited Financial Information for Alcoa Corporation's Equity Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments Schedule [Abstract] | ||
Sales | $ 1,263 | $ 1,253 |
Cost of goods sold | 1,045 | 960 |
Net (loss) income | $ (48) | $ 65 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 304 | $ 346 |
Work-in-process | 297 | 189 |
Bauxite and alumina | 525 | 609 |
Purchased raw materials | 528 | 529 |
Operating supplies | 145 | 146 |
Inventories, total | $ 1,799 | $ 1,819 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Inventory [Line Items] | |||
Retained earnings | $ 371 | $ 570 | |
Noncontrolling interest | $ 1,926 | 1,970 | |
Change in Accounting Principle from LIFO to Average Cost [Member] | Effect of Change [Member] | |||
Inventory [Line Items] | |||
Retained earnings | 229 | $ 205 | |
Noncontrolling interest | $ (35) | $ (35) |
Inventories - Schedule of Effec
Inventories - Schedule of Effects of Change in Accounting Principle From LIFO to Average Cost (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Statement of Consolidated Operations | ||||
Cost of goods sold | $ 2,180 | $ 2,302 | ||
Provision for income taxes | 150 | 151 | ||
Net (loss) income | (58) | 340 | ||
Net income attributable to noncontrolling interest | 141 | 145 | ||
Net (loss) income attributable to Alcoa Corporation | $ (199) | $ 195 | ||
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||
Basic | $ (1.07) | $ 1.05 | ||
Diluted | $ (1.07) | $ 1.04 | ||
Statement of Consolidated Comprehensive Income | ||||
Comprehensive (loss) income | $ (318) | $ 959 | ||
Comprehensive (loss) income attributable to Alcoa Corporation | (468) | 847 | ||
Comprehensive income attributable to noncontrolling interest | 150 | 112 | ||
Consolidated Balance Sheet | ||||
Inventories | 1,799 | $ 1,819 | ||
Prepaid expenses and other current assets | 285 | 320 | ||
Retained earnings | 371 | 570 | ||
Noncontrolling interest | 1,926 | 1,970 | ||
Statement of Consolidated Cash Flows | ||||
Net (loss) income | (58) | 340 | ||
Deferred income taxes | 33 | 2 | ||
Decrease (Increase) in inventories (H) | 17 | (248) | ||
Change in Accounting Principle from LIFO to Average Cost [Member] | As Computed under LIFO [Member] | ||||
Statement of Consolidated Operations | ||||
Cost of goods sold | 2,228 | |||
Provision for income taxes | 137 | |||
Net (loss) income | (93) | |||
Net income attributable to noncontrolling interest | 127 | |||
Net (loss) income attributable to Alcoa Corporation | $ (220) | |||
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||
Basic | $ (1.19) | |||
Diluted | $ (1.19) | |||
Statement of Consolidated Comprehensive Income | ||||
Comprehensive (loss) income | $ (353) | |||
Comprehensive (loss) income attributable to Alcoa Corporation | (489) | |||
Comprehensive income attributable to noncontrolling interest | 136 | |||
Consolidated Balance Sheet | ||||
Inventories | 1,579 | |||
Prepaid expenses and other current assets | 276 | |||
Retained earnings | 121 | |||
Noncontrolling interest | 1,947 | |||
Statement of Consolidated Cash Flows | ||||
Net (loss) income | (93) | |||
Deferred income taxes | 20 | |||
Decrease (Increase) in inventories (H) | 65 | |||
Change in Accounting Principle from LIFO to Average Cost [Member] | Effect of Change [Member] | ||||
Statement of Consolidated Operations | ||||
Cost of goods sold | (48) | |||
Provision for income taxes | 13 | |||
Net (loss) income | 35 | |||
Net income attributable to noncontrolling interest | 14 | |||
Net (loss) income attributable to Alcoa Corporation | $ 21 | |||
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||
Basic | $ 0.12 | |||
Diluted | $ 0.12 | |||
Statement of Consolidated Comprehensive Income | ||||
Comprehensive (loss) income | $ 35 | |||
Comprehensive (loss) income attributable to Alcoa Corporation | 21 | |||
Comprehensive income attributable to noncontrolling interest | 14 | |||
Consolidated Balance Sheet | ||||
Inventories | 220 | |||
Prepaid expenses and other current assets | 9 | |||
Retained earnings | 250 | |||
Noncontrolling interest | (21) | |||
Statement of Consolidated Cash Flows | ||||
Net (loss) income | 35 | |||
Deferred income taxes | 13 | |||
Decrease (Increase) in inventories (H) | $ (48) | |||
Change in Accounting Principle from LIFO to Average Cost [Member] | As Originally Reported [Member] | ||||
Statement of Consolidated Operations | ||||
Cost of goods sold | 2,381 | |||
Provision for income taxes | 138 | |||
Net (loss) income | 274 | |||
Net income attributable to noncontrolling interest | 124 | |||
Net (loss) income attributable to Alcoa Corporation | $ 150 | |||
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||
Basic | $ 0.81 | |||
Diluted | $ 0.80 | |||
Statement of Consolidated Comprehensive Income | ||||
Comprehensive (loss) income | $ 893 | |||
Comprehensive (loss) income attributable to Alcoa Corporation | 802 | |||
Comprehensive income attributable to noncontrolling interest | 91 | |||
Consolidated Balance Sheet | ||||
Inventories | 1,644 | |||
Prepaid expenses and other current assets | 301 | |||
Retained earnings | 341 | |||
Noncontrolling interest | 2,005 | |||
Statement of Consolidated Cash Flows | ||||
Net (loss) income | 274 | |||
Deferred income taxes | (11) | |||
Decrease (Increase) in inventories (H) | (169) | |||
Change in Accounting Principle from LIFO to Average Cost [Member] | Effect of Change [Member] | ||||
Statement of Consolidated Operations | ||||
Cost of goods sold | (79) | |||
Provision for income taxes | 13 | |||
Net (loss) income | 66 | |||
Net income attributable to noncontrolling interest | 21 | |||
Net (loss) income attributable to Alcoa Corporation | $ 45 | |||
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||
Basic | $ 0.24 | |||
Diluted | $ 0.24 | |||
Statement of Consolidated Comprehensive Income | ||||
Comprehensive (loss) income | $ 66 | |||
Comprehensive (loss) income attributable to Alcoa Corporation | 45 | |||
Comprehensive income attributable to noncontrolling interest | 21 | |||
Consolidated Balance Sheet | ||||
Inventories | 175 | |||
Prepaid expenses and other current assets | 19 | |||
Retained earnings | 229 | $ 205 | ||
Noncontrolling interest | $ (35) | $ (35) | ||
Statement of Consolidated Cash Flows | ||||
Net (loss) income | 66 | |||
Deferred income taxes | 13 | |||
Decrease (Increase) in inventories (H) | $ (79) |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Curtailments(2) | $ (23) | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 12 | 14 |
Interest cost(1) | 56 | 59 |
Expected return on plan assets(1) | (81) | (90) |
Recognized net actuarial loss(1) | 42 | 55 |
Amortization of prior service cost(1) | 1 | 2 |
Curtailments(2) | 5 | |
Net periodic benefit cost | 30 | 45 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost(1) | 8 | 9 |
Recognized net actuarial loss(1) | 3 | 3 |
Curtailments(2) | (28) | |
Net periodic benefit cost | $ 12 | $ (15) |
Derivatives and Other Financi_3
Derivatives and Other Financial Instruments - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 28, 2019Smelter | Mar. 31, 2019USD ($)MWhSmelterRefineryDerivativekt | Dec. 31, 2018USD ($)MWhkt | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Number of smelters | Smelter | 2 | ||
Number of derivative instruments | Derivative | 1 | ||
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 | 2,496 | 2,508 | |
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Electricity purchases | At March 31, 2019 and December 31, 2018, the financial contract hedges forecasted electricity purchases of 5,742,396 and 6,348,276 megawatt hours, respectively. | ||
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Cost of Goods Sold [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 | $ 69 | ||
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 | ||
Derivative [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of derivative contracts recorded as assets | $ 2 | $ 49 | |
Fair value of derivative contracts recorded as liabilities | $ 2 | $ 54 | |
Other Comprehensive Loss [Member] | Energy Contracts [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Forecasted energy purchases in megawatt hours | MWh | 5,742,396 | 6,348,276 | |
Cash Flow Hedging [Member] | Embedded Aluminum Derivative [Member] | Derivatives Designated as Hedging Instruments [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 | $ 59 | ||
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 | 8 | $ 68 | |
Realized gain (loss) on derivatives | $ 4 | $ 1 |
Derivatives and Other Financi_4
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)MWh$ / MWh$ / Metric_Ton$ / lb | Dec. 31, 2018USD ($) | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ | $ 137 | $ 153 |
Derivative Liabilities, Fair value | $ | 615 | $ 289 |
Financial Contracts [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 | $ | $ 137 | |
Financial Contracts [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 | 73.13 | |
Maturity date of electricity beyond forward curve | 2019 | |
Financial Contracts [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 | 55.02 | |
Maturity date of electricity beyond forward curve | 2021 | |
Embedded Aluminum Derivative [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 | $ | $ 267 | |
Megawatt hours per year | MWh | 4,000,000 | |
Embedded Aluminum Derivative [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 | 1,900 | |
Maturity year of future aluminum price | 2019 | |
Embedded Aluminum Derivative [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 | 2,445 | |
Maturity year of future aluminum price | 2027 | |
Embedded Aluminum Derivative [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 | $ | $ 320 | |
Embedded Aluminum Derivative [Member] | Energy Contracts [Member] | Price of Aluminum Beyond Forward Curve [Member] | Level 3 [Member] | Two Contracts [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 | 2,533 | |
Maturity month and year of future aluminum price | 2029-07 | |
Embedded Aluminum Derivative [Member] | Energy Contracts [Member] | Price of Aluminum Beyond Forward Curve [Member] | Level 3 [Member] | Two Contracts [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 | 2,553 | |
Maturity month and year of future aluminum price | 2029-12 | |
Embedded Aluminum Derivative [Member] | Energy Contracts [Member] | Price of Aluminum Beyond Forward Curve [Member] | Level 3 [Member] | Two Contracts [Member] | Midwest Premium [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.1900 | |
Midwest Premium expected year | 2019 | |
Embedded Aluminum Derivative [Member] | Energy Contracts [Member] | Price of Aluminum Beyond Forward Curve [Member] | Level 3 [Member] | Two Contracts [Member] | Midwest Premium [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.1850 | |
Midwest Premium expected year | 2029 | |
Embedded Aluminum Derivative [Member] | Energy Contracts [Member] | Price of Aluminum Beyond Forward Curve [Member] | Level 3 [Member] | One Contract [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 | 2,850 | |
Maturity year of future aluminum price | 2036 | |
Embedded Aluminum Derivative [Member] | Energy Contracts [Member] | Price of Aluminum Beyond Forward Curve [Member] | Level 3 [Member] | One Contract [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 | 2036 | |
Embedded Aluminum Derivative [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] | ||
Megawatt hours per year | MWh | 2,000,000 | |
Embedded Aluminum Derivative [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 | 1,900 | |
Maturity month and year of future aluminum price | 2019-04 | |
Embedded Aluminum Derivative [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 | 1,911 | |
Maturity month and year of future aluminum price | 2019-06 | |
Embedded Aluminum Derivative [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] | Midwest Premium [Member] | Minimum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.1900 | |
Midwest Premium expected year and month | 2019-04 | |
Embedded Aluminum Derivative [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] | Midwest Premium [Member] | Maximum [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Midwest Premium | $ / lb | 0.1900 | |
Midwest Premium expected year and month | 2019-06 | |
Embedded Aluminum Derivative [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 | $ | $ 7 | |
Embedded Aluminum Derivative [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 | 1,857 | |
Maturity month and year of future aluminum price | 2019-04 | |
Embedded Aluminum Derivative [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 | 1,954 | |
Maturity month and year of future aluminum price | 2019-12 | |
Embedded Credit Derivative [Member] | Energy Contracts [Member] | Estimated Spread Between the Respective 30-year Debt Yield of Alcoa Corporation and the Counterparty [Member] | Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | $ | $ 21 | |
Percentage of credit spread | 3.25% | |
Embedded Credit Derivative [Member] | Energy Contracts [Member] | Estimated Spread Between the Respective 30-year Debt Yield of Alcoa Corporation and the Counterparty [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 | 3.96% | |
Embedded Credit Derivative [Member] | Energy Contracts [Member] | Estimated Spread Between the Respective 30-year Debt Yield of Alcoa Corporation and the Counterparty [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 | 7.21% |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | $ 137 | $ 153 |
Fair value liability derivatives | 615 | 289 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | 137 | 153 |
Fair value liability derivatives | 594 | 264 |
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 | 69 | 70 |
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 | 68 | 42 |
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 asset derivatives | 41 | |
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 | 59 | 46 |
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 | 535 | 218 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 21 | 25 |
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 | 5 | |
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 | 4 | 4 |
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 | $ 17 | $ 16 |
Derivatives and Other Financi_6
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Embedded Aluminum Derivative [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Assets, Beginning balance | $ 41 |
Other comprehensive (loss) income | (41) |
Fair value measurement, Assets, Other | 0 |
Fair value measurement, Assets, Ending balance | 0 |
Fair value measurement, Liabilities, Beginning balance | 269 |
Fair value measurement, Liabilities, Cost of goods sold | 0 |
Other comprehensive (loss) income | 344 |
Fair value measurement, Liabilities, Other | (4) |
Fair value measurement, Liabilities, Ending balance | 594 |
Embedded Aluminum Derivative [Member] | Sales [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Assets | 0 |
Fair value measurement, Liabilities | (13) |
Embedded Aluminum Derivative [Member] | Cost of Goods Sold [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Assets | 0 |
Embedded Aluminum Derivative [Member] | Other Expense [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Assets | 0 |
Fair value measurement, Liabilities | (2) |
Fair value measurement, Liabilities, Other expenses, net | (2) |
Financial Contracts [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Assets, Beginning balance | 112 |
Other comprehensive (loss) income | 68 |
Fair value measurement, Assets, Other | (1) |
Fair value measurement, Assets, Ending balance | 137 |
Financial Contracts [Member] | Sales [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Assets | 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 | (42) |
Financial Contracts [Member] | Other Expense [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Assets | 0 |
Embedded Credit Derivative [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Liabilities, Beginning balance | 20 |
Fair value measurement, Liabilities, Cost of goods sold | 0 |
Other comprehensive (loss) income | 0 |
Fair value measurement, Liabilities, Other | 0 |
Fair value measurement, Liabilities, Ending balance | 21 |
Embedded Credit Derivative [Member] | Sales [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Liabilities | 0 |
Embedded Credit Derivative [Member] | Other Expense [Member] | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value measurement, Liabilities | 1 |
Fair value measurement, Liabilities, Other expenses, net | $ 1 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 1,017 | $ 1,113 |
Restricted cash | 3 | 3 |
Long-term debt due within one year | 1 | 1 |
Long-term debt, less amount due within one year | 1,802 | 1,801 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 1,017 | 1,113 |
Restricted cash | 3 | 3 |
Long-term debt due within one year | 1 | 1 |
Long-term debt, less amount due within one year | $ 1,939 | $ 1,863 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 162.40% | 30.90% |
Estimated annual effective tax rate | 72.20% | 30.50% |
Effective federal statutory tax rate | 21.00% | 21.00% |
Income tax expense benefits on domestic and foreign losses valuation reserves | $ 0 | $ 0 |
Provision for income taxes | 150,000,000 | 151,000,000 |
Income before income taxes | 92,000,000 | 491,000,000 |
Income tax on pre-tax income at annual tax rate | 67,000,000 | 150,000,000 |
Unfavorable impact income taxes | $ 83,000,000 | $ 1,000,000 |
Leasing - Additional Informatio
Leasing - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Line Items] | ||
Operating lease right-of-use assets | $ 185 | $ 201 |
Operating lease, liability | 185 | $ 201 |
Costs from operating leases | 19 | |
Short-term rental expense | 3 | |
Variable lease payments | $ 3 | |
Minimum [Member] | ||
Leases [Line Items] | ||
Remaining lease term | 1 year | |
Maximum [Member] | ||
Leases [Line Items] | ||
Remaining lease term | 39 years |
Leasing - Schedule of Aggregate
Leasing - Schedule of Aggregate Right-of Use Assets and Related Lease Obligations (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 185 | $ 201 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Other current liabilities | $ 66 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |
Other noncurrent liabilities and deferred credits | $ 119 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:DeferredCreditsAndOtherLiabilitiesNoncurrent | |
Total operating lease liabilities | $ 185 | $ 201 |
Leasing - Schedule of Weighted
Leasing - Schedule of Weighted Average Lease Term and Weighted Average Discount Rate (Detail) | Mar. 31, 2019 |
Weighted average lease term | |
Operating leases | 4 years 2 months 12 days |
Weighted average discount rate | |
Operating leases | 6.10% |
Leasing - Schedule of Future Ca
Leasing - Schedule of Future Cash Flows Related to Operating Lease Obligations (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 (excluding the three months ended March 31) | $ 59 | |
2020 | 64 | |
2021 | 48 | |
2022 | 17 | |
2023 | 9 | |
Thereafter | 20 | |
Total lease payments (undiscounted) | 217 | |
Less: discount to net present value | (32) | |
Total | $ 185 | $ 201 |
Leasing - Schedule of Minimum A
Leasing - Schedule of Minimum Annual Lease Commitments under Long-term Operating Leases (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 74 |
2020 | 56 |
2021 | 42 |
2022 | 11 |
2023 | 5 |
Thereafter | 21 |
Total lease payments | $ 209 |
Contingencies and Commitments -
Contingencies and Commitments - Changes in Carrying Value of Recorded Environmental Remediation Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Beginning balance | $ 280 | $ 294 |
Cash payments | (3) | (25) |
Liabilities incurred | 1 | 19 |
Reversals of previously recorded liabilities | (1) | (3) |
Foreign currency translation and other | (1) | (5) |
Ending balance | $ 276 | $ 280 |
Contingencies and Commitments_2
Contingencies and Commitments - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)Project | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | |||
Environmental remediation reserve balance, current | $ 33 | $ 44 | |
Active or future remediation for siginficant sites | 212 | 214 | |
Remediation reserve balance | $ 276 | 280 | $ 294 |
Massena, New York [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental remediation work completion period | 4 years | ||
Massena, New York [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental remediation work completion period | 8 years | ||
Sherwin, Texas [Member] | |||
Loss Contingencies [Line Items] | |||
Beginning of expected term for reuse of residue bed | 8 years | ||
Ending of expected term for reuse of residue bed | 12 years | ||
Other Sites [Member] | |||
Loss Contingencies [Line Items] | |||
Number of remediation projects | Project | 35 | ||
Remediation reserve balance | $ 64 | $ 66 |
Contingencies and Commitments_3
Contingencies and Commitments - Estimate Timing of Cash Outflows on Environmental Reserves (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments And Contingencies Disclosure [Abstract] | |||
2019 | $ 30 | ||
2020 - 2024 | 126 | ||
Thereafter | 120 | ||
Total | $ 276 | $ 280 | $ 294 |
Contingencies and Commitments_4
Contingencies and Commitments - Additional Information - 1 (Detail) | Jul. 06, 2018USD ($) | Apr. 08, 2013USD ($) | Apr. 08, 2013BRL (R$) | Mar. 31, 2013USD ($) | May 31, 2012USD ($) | May 31, 2012BRL (R$) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 06, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | Apr. 08, 2013BRL (R$) | Mar. 31, 2013BRL (R$) |
Loss Contingencies [Line Items] | ||||||||||||||||
Remediation reserve balance | $ 276,000,000 | $ 280,000,000 | $ 294,000,000 | |||||||||||||
Sherwin [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Remediation reserve balance | $ 38,000,000 | |||||||||||||||
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 | ||||||||||||||
Percentage of share of the estimated loss | 49.00% | 49.00% | ||||||||||||||
Tax Authority, Spain [Member] | Minimum [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Total combined assessments | $ 25,000,000 | € 21,000,000 | ||||||||||||||
Tax Authority, Spain [Member] | Maximum [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Total combined assessments | $ 61,000,000 | € 53,000,000 | ||||||||||||||
Tax Authority, Spain [Member] | Arconic Inc [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Tax matters agreement, contribution percentage | 51.00% | |||||||||||||||
Tax Authority, Spain [Member] | Alcoa Corporation [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Tax matters agreement, contribution percentage | 49.00% | |||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Disallowed tax credits | $ 110,000,000 | R$ 220000000 | ||||||||||||||
Percentage of penalty of the gross disallowed amount | 50.00% | |||||||||||||||
Value added tax receivable | $ 41,000,000 | R$ 82000000 | ||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Minimum [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 0 | |||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Minimum [Member] | Fixed Assets [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Disallowed tax credits | 0 | |||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Maximum [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | 27,000,000 | R$ 103000000 | ||||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Maximum [Member] | Fixed Assets [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Disallowed tax credits | $ 30,000,000 | R$ 117000000 | ||||||||||||||
Tax Year 2006 Through 2009 [Member] | Tax Authority, Spain [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Total combined assessments | $ 152,000,000 | € 131,000,000 |
Contingencies and Commitments_5
Contingencies and Commitments - Additional Information - 2 (Detail) $ in Millions, ر.س in Billions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2019SAR (ر.س) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | |
Other Noncurrent Liabilities and Deferred Credits [Member] | ||||
Other Commitments [Line Items] | ||||
Guarantee issued on behalf of smelting and rolling mill companies | $ 1 | $ 1 | ||
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 | |||
Saudi Arabia [Member] | Ma'aden Joint Venture [Member] | ||||
Other Commitments [Line Items] | ||||
Contribution to joint venture | $ 199 | |||
Ma'aden Joint Venture [Member] | Saudi Arabia [Member] | ||||
Other Commitments [Line Items] | ||||
Ownership interest in joint venture | 74.90% | 74.90% | ||
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 | $ 863 | $ 874 | ||
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, Net - Schedule
Other Expenses, Net - Schedule of Other Expenses, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | ||
Equity loss | $ 12 | $ 2 |
Foreign currency losses, net | 12 | 3 |
Net gain from asset sales | (8) | (5) |
Net gain on mark-to-market derivative instruments | (17) | |
Non-service costs – Pension & OPEB | 29 | 38 |
Other | (4) | |
Other expenses, net | $ 41 | $ 21 |