Document and Entity Information
Document and Entity Information - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AA | |
Entity Registrant Name | ALCOA CORP | |
Entity Central Index Key | 0001675149 | |
Entity File Number | 1-37816 | |
Entity Incorporation, State or Country Name | Delaware | |
Entity Tax Identification Number | 811789115 | |
Entity Address, Address Line One | 201 Isabella Street | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Pittsburgh | |
Entity Address, State or Province | Pennsylvania | |
Entity Address, Postal Zip Code | 15212-5858 | |
City Area Code | 412 | |
Local Phone Number | 315-2900 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 185,557,343 |
Statement of Consolidated Opera
Statement of Consolidated Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Sales (D) | $ 2,711 | $ 3,579 | $ 5,430 | $ 6,669 |
Cost of goods sold (exclusive of expenses below) (H) | 2,189 | 2,753 | 4,369 | 5,055 |
Selling, general administrative, and other expenses | 68 | 64 | 152 | 131 |
Research and development expenses | 7 | 9 | 14 | 17 |
Provision for depreciation, depletion, and amortization | 174 | 192 | 346 | 386 |
Restructuring and other charges, net (C) | 370 | 231 | 483 | 212 |
Interest expense | 30 | 32 | 60 | 58 |
Other expenses, net (N) | 50 | 9 | 91 | 30 |
Total costs and expenses | 2,888 | 3,290 | 5,515 | 5,889 |
(Loss) income before income taxes | (177) | 289 | (85) | 780 |
Provision for income taxes | 116 | 158 | 266 | 309 |
Net (loss) income | (293) | 131 | (351) | 471 |
Less: Net income attributable to noncontrolling interest | 109 | 121 | 250 | 266 |
NET (LOSS) INCOME ATTRIBUTABLE TO ALCOA CORPORATION | $ (402) | $ 10 | $ (601) | $ 205 |
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS (E): | ||||
Basic | $ (2.17) | $ 0.05 | $ (3.24) | $ 1.10 |
Diluted | $ (2.17) | $ 0.05 | $ (3.24) | $ 1.09 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income (H), Alcoa Corporation | $ (402) | $ 10 | $ (601) | $ 205 |
Net (loss) income (H), Noncontrolling interest | 109 | 121 | 250 | 266 |
Net (loss) income (H) | (293) | 131 | (351) | 471 |
Change in unrecognized net actuarial loss andprior service cost/benefit related to pensionand other postretirement benefits, Alcoa Corporation | 10 | 183 | 51 | 284 |
Change in unrecognized net actuarial loss andprior service cost/benefit related to pensionand other postretirement benefits, Noncontrolling interest | (2) | 2 | (1) | 3 |
Change in unrecognized net actuarial loss andprior service cost/benefit related to pensionand other postretirement benefits | 8 | 185 | 50 | 287 |
Foreign currency translation adjustments, Alcoa Corporation | 40 | (445) | 18 | (444) |
Foreign currency translation adjustments, Noncontrolling interest | 4 | (151) | 6 | (165) |
Foreign currency translation adjustments | 44 | (596) | 24 | (609) |
Net change in unrecognized gains/losses on cashflow hedges, Alcoa Corporation | 79 | (175) | (209) | 375 |
Net change in unrecognized gains/losses on cashflow hedges, Noncontrolling interest | (1) | (10) | 5 | (30) |
Net change in unrecognized gains/losses on cashflow hedges | 78 | (185) | (204) | 345 |
Total Other comprehensive income (loss), net of tax, Alcoa Corporation | 129 | (437) | (140) | 215 |
Total Other comprehensive income (loss), net of tax, Noncontrolling interest | 1 | (159) | 10 | (192) |
Total Other comprehensive income (loss), net of tax | 130 | (596) | (130) | 23 |
Comprehensive (loss) income, Alcoa Corporation | (273) | (427) | (741) | 420 |
Comprehensive (loss) income, Noncontrolling interest | 110 | (38) | 260 | 74 |
Comprehensive (loss) income | $ (163) | $ (465) | $ (481) | $ 494 |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents (J) | $ 834 | $ 1,113 |
Receivables from customers | 684 | 830 |
Other receivables | 203 | 173 |
Inventories (H) | 1,767 | 1,819 |
Fair value of derivative instruments (J) | 80 | 73 |
Prepaid expenses and other current assets (H) | 250 | 320 |
Total current assets | 3,818 | 4,328 |
Properties, plants, and equipment | 22,126 | 21,807 |
Less: accumulated depreciation, depletion, and amortization | 13,853 | 13,480 |
Properties, plants, and equipment, net | 8,273 | 8,327 |
Investments (G & M) | 1,141 | 1,360 |
Deferred income taxes | 599 | 560 |
Fair value of derivative instruments (J) | 55 | 82 |
Other noncurrent assets | 1,463 | 1,475 |
Total assets | 15,349 | 16,132 |
Current liabilities: | ||
Accounts payable, trade | 1,523 | 1,663 |
Accrued compensation and retirement costs | 409 | 400 |
Taxes, including income taxes | 100 | 426 |
Fair value of derivative instruments (J) | 71 | 82 |
Other current liabilities | 427 | 347 |
Long-term debt due within one year (J) | 1 | 1 |
Total current liabilities | 2,531 | 2,919 |
Long-term debt, less amount due within one year (J) | 1,804 | 1,801 |
Accrued pension benefits (I) | 1,388 | 1,407 |
Accrued other postretirement benefits (I) | 835 | 868 |
Asset retirement obligations | 529 | 529 |
Environmental remediation (M) | 237 | 236 |
Fair value of derivative instruments (J) | 506 | 261 |
Noncurrent income taxes | 320 | 301 |
Other noncurrent liabilities and deferred credits | 340 | 222 |
Total liabilities | 8,490 | 8,544 |
CONTINGENCIES AND COMMITMENTS (M) | ||
Alcoa Corporation shareholders’ equity: | ||
Common stock | 2 | 2 |
Additional capital | 9,629 | 9,611 |
Retained (deficit) earnings (H) | (31) | 570 |
Accumulated other comprehensive loss (F) | (4,705) | (4,565) |
Total Alcoa Corporation shareholders’ equity | 4,895 | 5,618 |
Noncontrolling interest (H) | 1,964 | 1,970 |
Total equity | 6,859 | 7,588 |
Total liabilities and equity | $ 15,349 | $ 16,132 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FROM OPERATIONS | ||
Net (loss) income (H) | $ (351) | $ 471 |
Adjustments to reconcile net (loss) income to cash from operations: | ||
Depreciation, depletion, and amortization | 346 | 387 |
Deferred income taxes (H) | 64 | (40) |
Equity earnings, net of dividends | 14 | (11) |
Restructuring and other charges, net (C) | 483 | 212 |
Net gain from investing activities – asset sales (N) | (1) | (3) |
Net periodic pension benefit cost (I) | 60 | 81 |
Stock-based compensation | 21 | 20 |
Provision for bad debt expense | 20 | |
Other | 24 | (32) |
Changes in assets and liabilities, excluding effects of foreign currency translation adjustments: | ||
Decrease (Increase) in receivables | 94 | (209) |
Decrease (Increase) in inventories (H) | 53 | (225) |
Decrease (Increase) in prepaid expenses and other current assets | 68 | (8) |
(Decrease) in accounts payable, trade | (144) | (105) |
(Decrease) in accrued expenses | (51) | (243) |
(Decrease) Increase in taxes, including income taxes | (342) | 101 |
Pension contributions (I) | (55) | (692) |
(Increase) in noncurrent assets | (32) | (49) |
(Decrease) in noncurrent liabilities | (21) | (30) |
CASH PROVIDED FROM (USED FOR) OPERATIONS | 250 | (375) |
FINANCING ACTIVITIES | ||
Additions to debt (original maturities greater than three months) | 553 | |
Payments on debt (original maturities greater than three months) | (7) | |
Proceeds from the exercise of employee stock options | 1 | 22 |
Contributions from noncontrolling interest | 21 | 109 |
Distributions to noncontrolling interest | (286) | (385) |
Other | (6) | (6) |
CASH (USED FOR) PROVIDED FROM FINANCING ACTIVITIES | (270) | 286 |
INVESTING ACTIVITIES | ||
Capital expenditures | (158) | (169) |
Proceeds from the sale of assets | 11 | |
Additions to investments | (111) | (5) |
CASH USED FOR INVESTING ACTIVITIES | (258) | (174) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (1) | (7) |
Net change in cash and cash equivalents and restricted cash | (279) | (270) |
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 | $ 837 | $ 1,095 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Beginning Balance at Dec. 31, 2017 | $ 6,968 | $ 2 | $ 9,590 | $ 318 | $ (5,182) | $ 2,240 |
Net (loss) income | 471 | 205 | 266 | |||
Other comprehensive income (loss) (F) | 23 | 215 | (192) | |||
Stock-based compensation | 20 | 20 | ||||
Common stock issued: compensation plans | 22 | 22 | ||||
Contributions | 109 | 109 | ||||
Distributions | (385) | (385) | ||||
Other | 17 | 18 | 1 | (2) | ||
Ending Balance at Jun. 30, 2018 | 7,245 | 2 | 9,650 | 524 | (4,967) | 2,036 |
Beginning Balance at Mar. 31, 2018 | 7,753 | 2 | 9,633 | 513 | (4,530) | 2,135 |
Net (loss) income | 131 | 10 | 121 | |||
Other comprehensive income (loss) (F) | (596) | (437) | (159) | |||
Stock-based compensation | 10 | 10 | ||||
Common stock issued: compensation plans | 7 | 7 | ||||
Contributions | 56 | 56 | ||||
Distributions | (118) | (118) | ||||
Other | 2 | 1 | 1 | |||
Ending Balance at Jun. 30, 2018 | 7,245 | 2 | 9,650 | 524 | (4,967) | 2,036 |
Beginning Balance at Dec. 31, 2018 | 7,588 | 2 | 9,611 | 570 | (4,565) | 1,970 |
Net (loss) income | (351) | (601) | 250 | |||
Other comprehensive income (loss) (F) | (130) | (140) | 10 | |||
Stock-based compensation | 21 | 21 | ||||
Common stock issued: compensation plans | 1 | 1 | ||||
Contributions | 21 | 21 | ||||
Distributions | (286) | (286) | ||||
Other | (5) | (4) | (1) | |||
Ending Balance at Jun. 30, 2019 | 6,859 | 2 | 9,629 | (31) | (4,705) | 1,964 |
Beginning Balance at Mar. 31, 2019 | 7,083 | 2 | 9,618 | 371 | (4,834) | 1,926 |
Net (loss) income | (293) | (402) | 109 | |||
Other comprehensive income (loss) (F) | 130 | 129 | 1 | |||
Stock-based compensation | 11 | 11 | ||||
Contributions | 1 | 1 | ||||
Distributions | (72) | (72) | ||||
Other | (1) | (1) | ||||
Ending Balance at Jun. 30, 2019 | $ 6,859 | $ 2 | $ 9,629 | $ (31) | $ (4,705) | $ 1,964 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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. Management elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications. 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 | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Charges, Net | C. Restructuring and Other Charges, Net – In the second quarter and six-month period of 2019, Alcoa Corporation recorded Restructuring and other charges, net of $370 and $483, respectively, which were comprised of the following components: $5 and $108, respectively, for exit costs related to the curtailment of the Avilés and La Coru ñ a smelters in Spain (see below); $38 (both periods) related to the curtailment of certain pension benefits (see Note I); $319 (both periods) related to the divestiture of Alcoa Corporation’s interest in the Ma’aden Rolling Company (MRC) (see below); $1 and $8, respectively, for closure costs related to a coal mine; and $7 and $10, respectively, for net charges related to various items. In January 2019, Alcoa Corporation reached an agreement with the workers’ representatives at the Avilés and La Coruña (Spain) aluminum facilities as part of the collective dismissal process announced in October 2018 and curtailed the smelters at these conditional share purchase agreement with PARTER for the purchase of the two facilities. The agreement was subject to PARTER meeting certain financial conditions prior to July 3 1 , 2019 to support future operations. Prior to signing the conditional share purchase agreement with PARTER, Alcoa Corporation reached agreement with the workers’ representatives related to the potential transaction. See Note O for additional information. Restructuring charges recorded in the first quarter of 2019 related to the collective dismissal 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. Restructuring charges recorded in the second quarter of 2019 related to this process are comprised of severance costs of $3 and other employee-related costs of $2. In December 2009, Alcoa Corporation invested 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 the Kingdom of 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 originally consisted of three separate companies as follows: the Ma’aden Bauxite and Alumina Company (MBAC; the bauxite mine and alumina refinery), the Ma’aden Aluminium Company (MAC; the aluminum smelter and casthouse), and MRC (the rolling mill). Alcoa Corporation accounts for its investment in the joint venture under the equity method as one integrated investment asset, consistent with the terms of the joint venture agreement. As of June 30, 2019 and December 31, 2018, the carrying value of Alcoa Corporation’s investment in this joint venture was $638 and $874, respectively. In the second quarter of 2019, Alcoa Corporation and Ma’aden amended the joint venture agreement that governs the operations of each of the three companies that comprise the joint venture. Under the terms of the amended agreement: • Alcoa Corporation made a contribution to MRC in the amount of $100, along with Ma’aden’s earlier capital contribution of $100, to meet current MRC cash requirements, including paying certain amounts owed by MRC to MAC and Alcoa Corporation; • Alcoa Corporation and Ma’aden consented to the write-off of $235 of MRC’s delinquent payables to MAC • Alcoa Corporation transferred its 25.1% interest in MRC to Ma’aden and, as a result, has no further direct or indirect equity interest in MRC • Alcoa Corporation is released from all future MRC obligations, including Alcoa Corporation’s sponsor support of $296 of MRC debt (see Note M) and its share of any future MRC cash requirements; and, • Alcoa Corporation and Ma’aden further defined MBAC and MAC shareholder rights, including the timing and determination of the amount of dividend payments of excess cash to the joint venture partners following required distributions to the commercial lenders of MBAC and MAC; among other matters. The amendment also defines October 1, 2021 as the date after which Alcoa Corporation is permitted to sell all of its shares in both MBAC and MAC collectively, for which Ma’aden has a right of first refusal. The agreement further outlines that Alcoa Corporation’s call option and Ma’aden’s put option, relating to additional interests in the joint venture, are exercisable for a period of six-months after October 1, 2021. The parties will maintain their commercial relationship, which includes Alcoa Corporation providing sales, logistics and customer technical services support for MRC products for the North American can sheet market. The Company will retain its 25.1% minority interest in MBAC and MAC, and Ma’aden will continue to own a 74.9% interest. The $319 restructuring charge resulting from the MRC divestiture includes the write-off of Alcoa Corporation’s investment in MRC of $161, the cash contributions described above of $100, and the write-off of Alcoa Corporation’s share of MRC’s delinquent payables due to MAC of $59 that were forgiven as part of this transaction, which were partially offset by a gain of $1 resulting from the write-off of the fair value of debt guarantee. In the second quarter and six-month period of 2018, Alcoa Corporation recorded Restructuring and other charges, net of $231 and $212, respectively, which were comprised of the following components: $167 and $144 (net), respectively, related to settlements and/or curtailments of certain pension and other postretirement employee benefits; $80 and $84, respectively, for additional costs related to the curtailed Wenatchee (Washington) smelter; a $15 net benefit in both periods related to the Portovesme (Italy) smelter; and a $1 net benefit in both periods for various items. Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Bauxite $ (1 ) $ — $ — $ — Alumina — 3 1 2 Aluminum 353 79 460 84 Segment total 352 82 461 86 Corporate 18 149 22 126 Total Restructuring and other charges, net $ 370 $ 231 $ 483 $ 212 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 ) (39 ) (42 ) Restructuring and other charges, net 8 39 47 Other (1) — (2 ) (2 ) Balance at June 30, 2019 $ 10 $ 40 $ 50 (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 June 30, 2019 was $2. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 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 Second quarter ended June 30, 2019 Sales: Third-party sales $ 67 $ 864 $ 1,757 $ 2,688 Intersegment sales 246 445 4 695 Total sales $ 313 $ 1,309 $ 1,761 $ 3,383 Segment Adjusted EBITDA $ 112 $ 369 $ 3 $ 484 Supplemental information: Depreciation, depletion, and amortization $ 27 $ 55 $ 85 $ 167 Equity income (loss) $ — $ 3 $ (17 ) $ (14 ) Second quarter ended June 30, 2018 Sales: Third-party sales $ 77 $ 1,068 $ 2,413 $ 3,558 Intersegment sales 226 536 4 766 Total sales $ 303 $ 1,604 $ 2,417 $ 4,324 Segment Adjusted EBITDA $ 100 $ 638 $ 230 $ 968 Supplemental information: Depreciation, depletion, and amortization $ 27 $ 49 $ 108 $ 184 Equity income (loss) $ — $ 14 $ (8 ) $ 6 Bauxite Alumina Aluminum Total Six months ended June 30, 2019 Sales: Third-party sales $ 132 $ 1,761 $ 3,492 $ 5,385 Intersegment sales 482 862 7 1,351 Total sales $ 614 $ 2,623 $ 3,499 $ 6,736 Segment Adjusted EBITDA $ 238 $ 741 $ (93 ) $ 886 Supplemental information: Depreciation, depletion, and amortization $ 55 $ 103 $ 174 $ 332 Equity income (loss) — 15 (39 ) (24 ) Six months ended June 30, 2018 Sales: Third-party sales $ 124 $ 1,982 $ 4,524 $ 6,630 Intersegment sales 475 990 8 1,473 Total sales $ 599 $ 2,972 $ 4,532 $ 8,103 Segment Adjusted EBITDA $ 210 $ 1,030 $ 417 $ 1,657 Supplemental information: Depreciation, depletion, and amortization $ 56 $ 102 $ 214 $ 372 Equity income (loss) — 13 (8 ) 5 The following table reconciles total Segment Adjusted EBITDA to consolidated net (loss) income attributable to Alcoa Corporation: Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Total Segment Adjusted EBITDA (1) $ 484 $ 968 $ 886 $ 1,657 Unallocated amounts: Transformation (2) 3 (1 ) 5 (3 ) Intersegment eliminations (1),(3) (1 ) (152 ) 85 (76 ) Corporate expenses (4) (28 ) (26 ) (52 ) (53 ) Provision for depreciation, depletion, and amortization (174 ) (192 ) (346 ) (386 ) Restructuring and other charges, net (C) (370 ) (231 ) (483 ) (212 ) Interest expense (30 ) (32 ) (60 ) (58 ) Other expenses, net (N) (50 ) (9 ) (91 ) (30 ) Other (5) (11 ) (36 ) (29 ) (59 ) Consolidated income before income taxes (177 ) 289 (85 ) 780 Provision for income taxes (116 ) (158 ) (266 ) (309 ) Net income attributable to noncontrolling interest (109 ) (121 ) (250 ) (266 ) Consolidated net (loss) income attributable to Alcoa Corporation $ (402 ) $ 10 $ (601 ) $ 205 (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: Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Primary aluminum $ 1,382 $ 1,871 $ 2,776 $ 3,518 Alumina 862 1,068 1,759 1,981 Flat-rolled aluminum 327 516 639 945 Energy 85 73 154 146 Bauxite 63 71 121 116 Other (1) (8 ) (20 ) (19 ) (37 ) $ 2,711 $ 3,579 $ 5,430 $ 6,669 (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 | 6 Months Ended |
Jun. 30, 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): Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Net (loss) income attributable to Alcoa Corporation $ (402 ) $ 10 $ (601 ) $ 205 Average shares outstanding – basic 186 186 185 186 Effect of dilutive securities: Stock options — 1 — 1 Stock units — 2 — 2 Average shares outstanding – diluted 186 189 185 189 In the second quarter and six-month period 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 for both the second quarter and six-month period of 2019. Had Alcoa Corporation generated net income in the second quarter or six-month period of 2019, one million common share equivalents related to stock units and stock options combined would have been included in diluted average shares outstanding for the respective periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 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 Second quarter ended June 30, Second Quarter Ended June 30, 2019 2018 2019 2018 Pension and other postretirement benefits (I) Balance at beginning of period $ (2,242 ) $ (2,685 ) $ (45 ) $ (46 ) Other comprehensive income: Unrecognized net actuarial (loss) gain and prior service cost/benefit (78 ) 1 (3 ) 2 Tax benefit 16 6 — — Total Other comprehensive (loss) income before reclassifications, net of tax (62 ) 7 (3 ) 2 Amortization of net actuarial loss and prior service cost/benefit (1) 83 224 1 — Tax expense (2) (11 ) (48 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 72 176 1 — Total Other comprehensive income (loss) 10 183 (2 ) 2 Balance at end of period (2,232 ) (2,502 ) (47 ) (44 ) Foreign currency translation Balance at beginning of period (2,093 ) (1,466 ) (808 ) (595 ) Other comprehensive income (loss) (3) 40 (445 ) 4 (151 ) Balance at end of period (2,053 ) (1,911 ) (804 ) (746 ) Cash flow hedges (J) Balance at beginning of period (499 ) (379 ) 37 31 Other comprehensive income (loss): Net change from periodic revaluations 80 (231 ) 6 (10 ) Tax (expense) benefit (12 ) 31 (2 ) 3 Total Other comprehensive income (loss) before reclassifications, net of tax 68 (200 ) 4 (7 ) Net amount reclassified to earnings: Aluminum contracts (4) 12 34 — — Financial contracts (5) (6 ) (7 ) (7 ) (4 ) Foreign exchange contracts (4) 4 — — — Sub-total 10 27 (7 ) (4 ) Tax benefit (expense) (2) 1 (2 ) 2 1 Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 11 25 (5 ) (3 ) Total Other comprehensive income (loss) 79 (175 ) (1 ) (10 ) Balance at end of period (420 ) (554 ) 36 21 Total Accumulated other comprehensive loss $ (4,705 ) $ (4,967 ) $ (815 ) $ (769 ) Alcoa Corporation Noncontrolling interest Six months ended June 30, Six months ended June 30, 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 (82 ) 76 (3 ) 3 Tax benefit (expense) 17 (2 ) — (1 ) Total Other comprehensive (loss) income before reclassifications, net of tax (65 ) 74 (3 ) 2 Amortization of net actuarial loss and prior service cost/benefit (1) 128 260 2 1 Tax expense (2) (12 ) (50 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 116 210 2 1 Total Other comprehensive income (loss) 51 284 (1 ) 3 Balance at end of period (2,232 ) (2,502 ) (47 ) (44 ) Foreign currency translation Balance at beginning of period (2,071 ) (1,467 ) (810 ) (581 ) Other comprehensive income (loss) (3) 18 (444 ) 6 (165 ) Balance at end of period (2,053 ) (1,911 ) (804 ) (746 ) Cash flow hedges (J) Balance at beginning of period (211 ) (929 ) 31 51 Other comprehensive (loss) income: Net change from periodic revaluations (272 ) 404 33 (30 ) Tax benefit (expense) 54 (68 ) (10 ) 9 Total Other comprehensive (loss) income before reclassifications, net of tax (218 ) 336 23 (21 ) Net amount reclassified to earnings: Aluminum contracts (4) 25 61 — — Financial contracts (5) (32 ) (20 ) (25 ) (13 ) Foreign exchange contracts (4) 8 (1 ) — — Sub-total 1 40 (25 ) (13 ) Tax benefit (expense) (2) 8 (1 ) 7 4 Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 9 39 (18 ) (9 ) Total Other comprehensive (loss) income (209 ) 375 5 (30 ) Balance at end of period (420 ) (554 ) 36 21 Total Accumulated other comprehensive loss $ (4,705 ) $ (4,967 ) $ (815 ) $ (769 ) (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 | 6 Months Ended |
Jun. 30, 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): Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Sales $ 1,160 $ 1,367 $ 2,423 $ 2,620 Cost of goods sold 935 1,078 1,980 2,038 Net (loss) income (29 ) 32 (77 ) 97 In December 2009, Alcoa Corporation invested 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 the Kingdom of Saudi Arabia. The joint venture is owned 74.9% by Ma’aden and 25.1% by Alcoa Corporation, and originally consisted of three separate companies: MBAC, MAC, and MRC. Alcoa Corporation accounts for its investment in the joint venture under the equity method as one integrated investment asset, consistent with the terms of the joint venture agreement. During the second quarter of 2019, Alcoa Corporation and Ma’aden amended the joint venture agreement that governs the operations of each of the three companies that comprise the joint venture. The amendment resulted in various changes (described in detail in Note C), effectively divesting the Company’s investment in MRC. The Company will retain its 25.1% minority interest in MBAC and MAC, and Ma’aden will continue to own a 74.9% interest. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | H. Inventories June 30, 2019 December 31, 2018 Finished goods $ 273 $ 346 Work-in-process 304 189 Bauxite and alumina 539 609 Purchased raw materials 501 529 Operating supplies 150 146 $ 1,767 $ 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 second quarter and the six months ended June 30, 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 second quarter ended June 30, 2018: Cost of goods sold $ 2,632 $ 121 $ 2,753 Provision for income taxes 180 (22 ) 158 Net income 230 (99 ) 131 Net income attributable to noncontrolling interest 155 (34 ) 121 Net income attributable to Alcoa Corporation 75 (65 ) 10 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 0.40 $ (0.35 ) $ 0.05 Diluted 0.39 (0.34 ) 0.05 Statement of Consolidated Comprehensive Income for the second quarter ended June 30, 2018: Comprehensive loss $ (366 ) $ (99 ) $ (465 ) Comprehensive loss attributable to noncontrolling interest (4 ) (34 ) (38 ) Comprehensive loss attributable to Alcoa Corporation (362 ) (65 ) (427 ) Statement of Consolidated Operations for the six months ended June 30, 2018: Cost of goods sold $ 5,013 $ 42 $ 5,055 Provision for income taxes 318 (9 ) 309 Net income 504 (33 ) 471 Net income attributable to noncontrolling interest 279 (13 ) 266 Net income attributable to Alcoa Corporation 225 (20 ) 205 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 1.21 $ (0.11 ) $ 1.10 Diluted 1.19 (0.10 ) 1.09 Statement of Consolidated Comprehensive Income for the six months ended June 30, 2018: Comprehensive income $ 527 $ (33 ) $ 494 Comprehensive income attributable to noncontrolling interest 87 (13 ) 74 Comprehensive income attributable to Alcoa Corporation 440 (20 ) 420 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 six months ended June 30, 2018: Net income $ 504 $ (33 ) $ 471 Deferred income taxes (31 ) (9 ) (40 ) (Increase) in inventories (267 ) 42 (225 ) 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 June 30, 2019 and for the six months then ended: As Computed under LIFO As Reported under Average Cost Effect of Change Statement of Consolidated Operations for the second quarter ended June 30, 2019: Cost of goods sold $ 2,163 $ 2,189 $ 26 Provision for income taxes 119 116 (3 ) Net loss (270 ) (293 ) (23 ) Net income attributable to noncontrolling interest 108 109 1 Net loss attributable to Alcoa Corporation (378 ) (402 ) (24 ) Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ (2.04 ) $ (2.17 ) $ (0.13 ) Diluted (2.04 ) (2.17 ) (0.13 ) Statement of Consolidated Comprehensive Income for the second quarter ended June 30, 2019: Comprehensive loss $ (140 ) $ (163 ) $ (23 ) Comprehensive income attributed to noncontrolling interest 109 110 1 Comprehensive loss attributable to Alcoa Corporation (249 ) (273 ) (24 ) Statement of Consolidated Operations for the six months ended June 30, 2019: Cost of goods sold $ 4,391 $ 4,369 $ (22 ) Provision for income taxes 256 266 10 Net loss (363 ) (351 ) 12 Net income attributable to noncontrolling interest 235 250 15 Net loss attributable to Alcoa Corporation (598 ) (601 ) (3 ) Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ (3.22 ) $ (3.24 ) $ (0.02 ) Diluted (3.22 ) (3.24 ) (0.02 ) Statement of Consolidated Comprehensive Income for the six months ended June 30, 2019: Comprehensive loss $ (493 ) $ (481 ) $ 12 Comprehensive income attributable to noncontrolling interest 245 260 15 Comprehensive loss attributable to Alcoa Corporation (738 ) (741 ) (3 ) Consolidated Balance Sheet as of June 30, 2019: Inventories $ 1,573 $ 1,767 $ 194 Prepaid expenses and other current assets 238 250 12 Retained deficit (257 ) (31 ) 226 Noncontrolling interest 1,984 1,964 (20 ) Statement of Consolidated Cash Flows for the six months ended June 30, 2019: Net loss $ (363 ) $ (351 ) $ 12 Deferred income taxes 54 64 10 Decrease in inventories 75 53 (22 ) |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | I. Pension and Other Postretirement Benefits – The components of net periodic benefit cost were as follows: Second quarter ended June 30, Six months ended June 30, Pension benefits 2019 2018 2019 2018 Service cost $ 12 $ 14 $ 24 $ 28 Interest cost (1) 56 55 112 114 Expected return on plan assets (1) (82 ) (82 ) (163 ) (172 ) Recognized net actuarial loss (1) 42 52 84 107 Amortization of prior service cost (1) 2 2 3 4 Settlements (2) — 167 — 167 Curtailments (2) 38 — 38 5 Net periodic benefit cost $ 68 $ 208 $ 98 $ 253 Second quarter ended June 30, Six months ended June 30, Other postretirement benefits 2019 2018 2019 2018 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost (1) 10 9 18 18 Recognized net actuarial loss (1) 2 4 5 7 Amortization of prior service benefit (1) — (1 ) — (1 ) Curtailments (2) — — — (28 ) Net periodic benefit cost $ 13 $ 13 $ 25 $ (2 ) (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 Statements of Consolidated Operations (see Note C) and of Cash Flows. In June 2019, the Company entered into a new, six-year collective bargaining agreement with the National Union of Aluminum Employees of Baie-Comeau. Under the agreement, all Canadian union employees that are participants in one of the Company’s defined benefit pension plans will cease accruing retirement benefits for future service effective January 1, 2021. This change will affect approximately 700 employees, who are targeted to be transitioned to a target benefit plan, where the funding risk is assumed by the employees. The Company will contribute approximately 12% of these participants’ eligible earnings on an annual basis. The Company will also contribute additional contributions of approximately $2 over a three-year period to improve the financial position of the newly established target benefit plan. Participants already collecting benefits or who terminated with a vested benefit under the defined benefit pension plan are not affected by these changes. This action resulted in the curtailment of benefits thereby requiring remeasurement, including an update to the discount rate used to determine benefit obligations, of the affected plan. The following table presents certain information and the financial impacts of this action on the accompanying Consolidated Financial Statements: Number of affected plan participants Weighted average discount rate as of December 31, 2018 Plan remeasurement date Weighted average discount rate as of plan remeasurement date Increase to accrued pension benefits liability Curtailment charge (1) ~700 3.85% May 31, 2019 3.15% $ 52 $ 38 ( 1 ) This amount represents the accelerated amortization of a portion of the existing prior service cost and was reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (see Note C) on the accompanying Statement of Consolidated Operations. |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 6 Months Ended |
Jun. 30, 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 $3 and $41, respectively, at June 30, 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 gain of $5 and an unrealized loss of $3 in the 2019 second quarter and six-month period, respectively, and an unrealized loss of $55 and an unrealized gain of $13 in the 2018 second quarter and six-month period, respectively, in Other comprehensive (loss) income. Additionally, Alcoa Corporation reclassified a realized loss of $8 and $12 in the 2019 second quarter and six-month period, respectively, and $6 and $7 in the 2018 second quarter and six-month period, 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 Corporation 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 Accumulated other comprehensive loss 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 132 Interrelationship of forward energy price and the Consumer Price Index and price of electricity beyond forward curve Electricity: $73.85 per megawatt hour in 2019 to $53.33 per megawatt hour in 2021 Liabilities: Embedded aluminum derivative 236 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,782 per metric ton in 2019 to $2,373 per metric ton in 2027 Electricity: rate of 4 million megawatt hours per year Embedded aluminum derivatives 275 Price of aluminum beyond forward curve Aluminum: $2,473 per metric ton in October 2029 to $2,481 per metric ton in December 2029 (two contracts) and $2,772 per metric ton in 2036 (one contract) Midwest premium: $0.1850 per pound in 2019, 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: $1,782 per metric ton in July 2019 to $1,800 per metric ton in September 2019 Midwest premium: $0.1850 per pound in July 2019 and to $0.1900 per pound in September 2019 Electricity: rate of 2 million megawatt hours per year Embedded aluminum derivative 4 Interrelationship of LME price to overall energy price Aluminum: $1,824 per metric ton in July 2019 to $1,847 per metric ton in December 2019 Embedded credit derivative 20 Estimated spread between the respective 30-year debt yield of Alcoa Corporation and the counterparty 3.19% (30-year debt yields: Alcoa Corporation – 6.94% (estimated) and counterparty – 3.75%) The fair values of Level 3 derivative instruments recorded as assets and liabilities in the accompanying Consolidated Balance Sheet were as follows: June 30, 2019 December 31, 2018 Asset Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Financial contract $ 77 $ 70 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives — 41 Financial contract 55 42 Total derivatives designated as hedging instruments 132 153 Total Asset Derivatives $ 132 $ 153 Liability Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivatives $ 43 $ 46 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives 472 218 Total derivatives designated as hedging instruments 515 264 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 16 16 Total derivatives not designated as hedging instruments 20 25 Total Liability Derivatives $ 535 $ 289 The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities Second quarter ended June 30, 2019 Financial contracts Embedded aluminum derivatives Embedded credit derivative Balance at April 1, 2019 $ 137 $ 594 $ 21 Total gains or losses (realized and unrealized) included in: Sales — (12 ) — Cost of goods sold (17 ) — (2 ) Other expenses, net — — 1 Other comprehensive income (loss) 14 (66 ) — Other (2 ) (1 ) — Balance at June 30, 2019 $ 132 $ 515 $ 20 Change in unrealized gains or losses included in earnings for derivative instruments held at June 30, 2019: Other expenses, net $ — $ — $ 1 Assets Liabilities Six months ended June 30, 2019 Embedded aluminum derivatives Financial contracts Embedded aluminum derivatives Embedded credit derivative Opening balance – January 1, 2019 $ 41 $ 112 $ 269 $ 20 Total gains or losses (realized and unrealized) included in: Sales — — (25 ) — Cost of goods sold — (59 ) — (2 ) Other expenses, net — — (2 ) 2 Other comprehensive (loss) income (41 ) 82 278 — Other — (3 ) (5 ) — Closing balance – June 30, 2019 $ — $ 132 $ 515 $ 20 Change in unrealized gains or losses included in earnings for derivative instruments held at June 30, 2019: Other expenses, net $ — $ — $ (2 ) $ 2 In the first quarter of 2019, there was an expiration of an existing and an issuance of a new embedded aluminum derivative (see above). In the 2019 six-month period, 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 June 30, 2019 and December 31, 2018, these embedded aluminum derivatives hedge forecasted aluminum sales of 2,450 kmt and 2,508 kmt, respectively. Assuming market rates remain constant with the rates at June 30, 2019, a realized loss of $43 is expected to be recognized in Sales over the next 12 months. There was no ineffectiveness related to these six derivative instruments in the 2019 and 2018 second quarter and six-month periods. At June 30, 2019 and December 31, 2018, the financial contract hedges forecasted electricity purchases of 5,129,784 and 6,348,276 megawatt hours, respectively. Assuming market rates remain consistent with the rates at June 30, 2019, a realized gain of $77 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 second quarter and six-month period of 2019. The amount of hedge ineffectiveness related to this derivative instrument was not material in the 2018 second quarter and six-month period. 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: June 30, 2019 December 31, 2018 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 834 $ 834 $ 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 1,804 1,944 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 | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | K. Income Taxes – Alcoa Corporation’s estimated annualized effective tax rate (AETR) for 2019 was 137.1% as of June 30, 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 losses in countries with full valuation reserves resulting in no tax benefit. Six-months ended June 30, 2019 2018 (Loss) income before income taxes $ (85 ) $ 780 Estimated annualized effective tax rate 137.1 % 40.1 % Income tax (benefit) expense $ (116 ) $ 313 Unfavorable (favorable) tax impact related to losses in jurisdictions with no tax benefit 381 (4 ) Discrete tax charge 1 — Provision for income taxes $ 266 $ 309 The Provision for income taxes for the 2019 six-month period includes a $60 charge resulting from the change in estimated AETR from 72.2% in the first quarter of 2019 to 137.1% in the second quarter of 2019. The change in estimated AETR is due primarily to fluctuating alumina and aluminum market prices that result in changes to the distribution of the (Loss) income before income taxes in the Company’s various tax jurisdictions, inclusive of those which receive no tax benefit from generated losses. |
Leasing
Leasing | 6 Months Ended |
Jun. 30, 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 June 30, 2019, includes costs from operating leases of $20, short-term rental expense of $1 and variable lease payments of $5. Lease expense for the six-months ended June 30, 2019, includes costs from operating leases of $39, short-term rental expense of $4 and variable lease payments of $8. New leases of $7 were added during the three and six-months ended June 30, 2019. The Company does not have material financing leases. The following represents the aggregate right-of use assets and related lease obligations as of June 30, 2019: Amounts recognized in the Consolidated Balance Sheet at June 30, 2019: Properties, plants and equipment, net $ 175 Other current liabilities 66 Other noncurrent liabilities and deferred credits 109 Total operating lease liabilities $ 175 The weighted average lease term and weighted average discount rate as of June 30, 2019 were as follows: Weighted average lease term Operating leases 4.1 years Weighted average discount rate Operating leases 5.3% The future cash flows related to the operating lease obligations as of June 30, 2019 were as follows: Year Ending December 31, Operating leases 2019 (excluding the six months ended June 30) $ 41 2020 68 2021 51 2022 18 2023 10 Thereafter 22 Total lease payments (undiscounted) 210 Less: discount to net present value (35 ) Total $ 175 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 | 6 Months Ended |
Jun. 30, 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 (10 ) Liabilities incurred 2 Reversals of previously recorded liabilities (1 ) Balance at June 30, 2019 $ 271 At June 30, 2019 and December 31, 2018, the current portion of Alcoa Corporation’s environmental remediation reserve balance was $34 and $44, respectively. In the second quarter and six-month period of 2019, the Company incurred liabilities of $1 and $2, respectively, due to charges related to increases for ongoing monitoring and maintenance. These charges are recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. In the second quarter and six-month period of 2018 the remediation reserve was increased by $15 due to a charge of $9 related to the former Sherwin location (see below), a reversal of $2 related to the Portovesme location (unrelated to the Italy matter below), and a charge of $8 associated with several sites. Of the changes to the reserve in the second quarter and six-month period of 2018, a charge of $15 was recorded in Cost of goods sold and both a charge of $2 and a reversal of $2 were recorded in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations. The estimated timing of cash outflows on the environmental remediation reserve at June 30, 2019 is as follows: 2019 $ 21 2020 - 2024 130 Thereafter 120 Total $ 271 Reserve balances at June 30, 2019 and December 31, 2018, associated with significant sites with active remediation underway or for future remediation were $208 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 in 2020. Additionally, Trasformazioni agreed to make annual payments to MOE over a 10-year period, ending in 2022, 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-2020; 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 Corporation’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 June 30, 2019 and December 31, 2018, the reserve balance associated with these activities was $63 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 for these matters is $0 to $57. 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 June 30, 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 have been executed by the parties. On June 2, 2019, the Court entered a Stipulation of Dismissal, formally concluding the litigation. 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 In December 2009, At the time of closing, MRC had project financing totaling $1,179, of which $296 represented Alcoa Corporation’s 25.1% interest in the rolling mill company prior to the divestiture. Alcoa Corporation had issued guarantees (see below) to the lenders in the event of default on the debt service requirements by MRC through 2018 and 2021 (Ma’aden issued similar guarantees related to its 74.9% interest). Alcoa Corporation’s guarantees for MRC covered 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 MAC and MBAC. In December 2017 and July 2018, MAC and MBAC, respectively, refinanced and/or amended all of their existing outstanding debt. The guarantees that were previously required of the Company related to both MAC and MBAC were effectively terminated. At 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 part of Alcoa Corporation’s divestiture of MRC, the guarantee related to MRC was effectively terminated. |
Other Expenses, Net
Other Expenses, Net | 6 Months Ended |
Jun. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Other Expenses, Net | N. Other Expenses, Net Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Equity loss (income) $ 15 $ (3 ) $ 27 $ (1 ) Foreign currency losses (gains), net 5 (30 ) 17 (27 ) Net loss (gain) from asset sales 7 2 (1 ) (3 ) Net loss (gain) on mark-to-market derivative instruments (J) — 6 — (11 ) Non-service costs – Pension & OPEB (I) 30 39 59 77 Other (7 ) (5 ) (11 ) (5 ) $ 50 $ 9 $ 91 $ 30 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | O. Subsequent Events On June 26, 2019, management of the Aluminerie de Bécancour Inc. (ABI) smelter in Québec, Canada presented a final offer to the United Steelworkers for a new six-year labor agreement. The smelter, which is owned by Alcoa Corporation (74.95%) and Rio Tinto Alcan Inc. (25.05%), had been operating at reduced capacity since January 11, 2018 after union members rejected a proposed labor contract for hourly employees. On July 2, 2019, members of the United Steelworkers union in Québec approved the agreement and ABI announced a plan to begin the restart process on July 26, 2019. A recall of the approximately 900 unionized employees who had been on lockout will be completed in accordance with a specific back-to-work protocol, with those on lockout generally being recalled within eight months of the July 26, 2019 restart process commencement. The restart process is expected to be completed within the second quarter of 2020. The Company expects to record charges associated with the restart of approximately $40 to $50 (approximately $30 to $35 after-tax), each in the second half of 2019 and in the first half of 2020. In January 2019, Alcoa Corporation reached an agreement with the workers’ representatives at the Avilés and La Coruña (Spain) aluminum facilities as part of the collective dismissal process announced in October 2018 and curtailed the smelters at these two locations in February 2019. As part of the agreement, the Company agreed to conduct a sale process to identify third parties with interest in acquiring the facilities and maintain the smelters in restart condition up to June 30, 2019. Through the sale process, PARTER, a private equity investment firm, was identified as a potential buyer for both of the Spanish facilities, inclusive of the smelters and casthouses at both facilities and the paste plant at La Coruña. Prior to the June 30, 2019 deadline, Alcoa Corporation agreed with the workers’ representatives to extend the timeline for the potential buyer to meet the financial conditions of a draft share purchase agreement by one week. On July 5, 2019, Alcoa Corporation signed a conditional share purchase agreement with PARTER for the purchase of these two facilities. The agreement was subject to PARTER meeting certain financial conditions prior to July 31, 2019 to support future operations. Prior to signing the conditional share purchase agreement with PARTER, Alcoa Corporation reached agreement with the workers’ representatives related to the potential transaction. If PARTER was not able to meet the financial conditions prior to July 3 1 , 2019 , the Company would have proceeded with the collective dismissal and social plan as of August 1, 2019. As of July 31, 2019, PARTER was able to meet the financial conditions and the transaction has closed. Alcoa Corporation will record restructuring-related charges of approximately $135 in the third quarter of 2019 resulting from a cash contribution of $95 to PARTER per the agreement and a charge of approximately $40 to meet a working capital commitment and write-off of the remaining net book value of plants’ assets. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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: Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Bauxite $ (1 ) $ — $ — $ — Alumina — 3 1 2 Aluminum 353 79 460 84 Segment total 352 82 461 86 Corporate 18 149 22 126 Total Restructuring and other charges, net $ 370 $ 231 $ 483 $ 212 |
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 ) (39 ) (42 ) Restructuring and other charges, net 8 39 47 Other (1) — (2 ) (2 ) Balance at June 30, 2019 $ 10 $ 40 $ 50 (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) | 6 Months Ended |
Jun. 30, 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 Second quarter ended June 30, 2019 Sales: Third-party sales $ 67 $ 864 $ 1,757 $ 2,688 Intersegment sales 246 445 4 695 Total sales $ 313 $ 1,309 $ 1,761 $ 3,383 Segment Adjusted EBITDA $ 112 $ 369 $ 3 $ 484 Supplemental information: Depreciation, depletion, and amortization $ 27 $ 55 $ 85 $ 167 Equity income (loss) $ — $ 3 $ (17 ) $ (14 ) Second quarter ended June 30, 2018 Sales: Third-party sales $ 77 $ 1,068 $ 2,413 $ 3,558 Intersegment sales 226 536 4 766 Total sales $ 303 $ 1,604 $ 2,417 $ 4,324 Segment Adjusted EBITDA $ 100 $ 638 $ 230 $ 968 Supplemental information: Depreciation, depletion, and amortization $ 27 $ 49 $ 108 $ 184 Equity income (loss) $ — $ 14 $ (8 ) $ 6 Bauxite Alumina Aluminum Total Six months ended June 30, 2019 Sales: Third-party sales $ 132 $ 1,761 $ 3,492 $ 5,385 Intersegment sales 482 862 7 1,351 Total sales $ 614 $ 2,623 $ 3,499 $ 6,736 Segment Adjusted EBITDA $ 238 $ 741 $ (93 ) $ 886 Supplemental information: Depreciation, depletion, and amortization $ 55 $ 103 $ 174 $ 332 Equity income (loss) — 15 (39 ) (24 ) Six months ended June 30, 2018 Sales: Third-party sales $ 124 $ 1,982 $ 4,524 $ 6,630 Intersegment sales 475 990 8 1,473 Total sales $ 599 $ 2,972 $ 4,532 $ 8,103 Segment Adjusted EBITDA $ 210 $ 1,030 $ 417 $ 1,657 Supplemental information: Depreciation, depletion, and amortization $ 56 $ 102 $ 214 $ 372 Equity income (loss) — 13 (8 ) 5 |
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: Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Total Segment Adjusted EBITDA (1) $ 484 $ 968 $ 886 $ 1,657 Unallocated amounts: Transformation (2) 3 (1 ) 5 (3 ) Intersegment eliminations (1),(3) (1 ) (152 ) 85 (76 ) Corporate expenses (4) (28 ) (26 ) (52 ) (53 ) Provision for depreciation, depletion, and amortization (174 ) (192 ) (346 ) (386 ) Restructuring and other charges, net (C) (370 ) (231 ) (483 ) (212 ) Interest expense (30 ) (32 ) (60 ) (58 ) Other expenses, net (N) (50 ) (9 ) (91 ) (30 ) Other (5) (11 ) (36 ) (29 ) (59 ) Consolidated income before income taxes (177 ) 289 (85 ) 780 Provision for income taxes (116 ) (158 ) (266 ) (309 ) Net income attributable to noncontrolling interest (109 ) (121 ) (250 ) (266 ) Consolidated net (loss) income attributable to Alcoa Corporation $ (402 ) $ 10 $ (601 ) $ 205 (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: Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Primary aluminum $ 1,382 $ 1,871 $ 2,776 $ 3,518 Alumina 862 1,068 1,759 1,981 Flat-rolled aluminum 327 516 639 945 Energy 85 73 154 146 Bauxite 63 71 121 116 Other (1) (8 ) (20 ) (19 ) (37 ) $ 2,711 $ 3,579 $ 5,430 $ 6,669 (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) | 6 Months Ended |
Jun. 30, 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): Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Net (loss) income attributable to Alcoa Corporation $ (402 ) $ 10 $ (601 ) $ 205 Average shares outstanding – basic 186 186 185 186 Effect of dilutive securities: Stock options — 1 — 1 Stock units — 2 — 2 Average shares outstanding – diluted 186 189 185 189 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 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 Second quarter ended June 30, Second Quarter Ended June 30, 2019 2018 2019 2018 Pension and other postretirement benefits (I) Balance at beginning of period $ (2,242 ) $ (2,685 ) $ (45 ) $ (46 ) Other comprehensive income: Unrecognized net actuarial (loss) gain and prior service cost/benefit (78 ) 1 (3 ) 2 Tax benefit 16 6 — — Total Other comprehensive (loss) income before reclassifications, net of tax (62 ) 7 (3 ) 2 Amortization of net actuarial loss and prior service cost/benefit (1) 83 224 1 — Tax expense (2) (11 ) (48 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 72 176 1 — Total Other comprehensive income (loss) 10 183 (2 ) 2 Balance at end of period (2,232 ) (2,502 ) (47 ) (44 ) Foreign currency translation Balance at beginning of period (2,093 ) (1,466 ) (808 ) (595 ) Other comprehensive income (loss) (3) 40 (445 ) 4 (151 ) Balance at end of period (2,053 ) (1,911 ) (804 ) (746 ) Cash flow hedges (J) Balance at beginning of period (499 ) (379 ) 37 31 Other comprehensive income (loss): Net change from periodic revaluations 80 (231 ) 6 (10 ) Tax (expense) benefit (12 ) 31 (2 ) 3 Total Other comprehensive income (loss) before reclassifications, net of tax 68 (200 ) 4 (7 ) Net amount reclassified to earnings: Aluminum contracts (4) 12 34 — — Financial contracts (5) (6 ) (7 ) (7 ) (4 ) Foreign exchange contracts (4) 4 — — — Sub-total 10 27 (7 ) (4 ) Tax benefit (expense) (2) 1 (2 ) 2 1 Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 11 25 (5 ) (3 ) Total Other comprehensive income (loss) 79 (175 ) (1 ) (10 ) Balance at end of period (420 ) (554 ) 36 21 Total Accumulated other comprehensive loss $ (4,705 ) $ (4,967 ) $ (815 ) $ (769 ) Alcoa Corporation Noncontrolling interest Six months ended June 30, Six months ended June 30, 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 (82 ) 76 (3 ) 3 Tax benefit (expense) 17 (2 ) — (1 ) Total Other comprehensive (loss) income before reclassifications, net of tax (65 ) 74 (3 ) 2 Amortization of net actuarial loss and prior service cost/benefit (1) 128 260 2 1 Tax expense (2) (12 ) (50 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 116 210 2 1 Total Other comprehensive income (loss) 51 284 (1 ) 3 Balance at end of period (2,232 ) (2,502 ) (47 ) (44 ) Foreign currency translation Balance at beginning of period (2,071 ) (1,467 ) (810 ) (581 ) Other comprehensive income (loss) (3) 18 (444 ) 6 (165 ) Balance at end of period (2,053 ) (1,911 ) (804 ) (746 ) Cash flow hedges (J) Balance at beginning of period (211 ) (929 ) 31 51 Other comprehensive (loss) income: Net change from periodic revaluations (272 ) 404 33 (30 ) Tax benefit (expense) 54 (68 ) (10 ) 9 Total Other comprehensive (loss) income before reclassifications, net of tax (218 ) 336 23 (21 ) Net amount reclassified to earnings: Aluminum contracts (4) 25 61 — — Financial contracts (5) (32 ) (20 ) (25 ) (13 ) Foreign exchange contracts (4) 8 (1 ) — — Sub-total 1 40 (25 ) (13 ) Tax benefit (expense) (2) 8 (1 ) 7 4 Total amount reclassified from Accumulated other comprehensive loss, net of tax (6) 9 39 (18 ) (9 ) Total Other comprehensive (loss) income (209 ) 375 5 (30 ) Balance at end of period (420 ) (554 ) 36 21 Total Accumulated other comprehensive loss $ (4,705 ) $ (4,967 ) $ (815 ) $ (769 ) (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) | 6 Months Ended |
Jun. 30, 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): Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Sales $ 1,160 $ 1,367 $ 2,423 $ 2,620 Cost of goods sold 935 1,078 1,980 2,038 Net (loss) income (29 ) 32 (77 ) 97 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Inventory Components | June 30, 2019 December 31, 2018 Finished goods $ 273 $ 346 Work-in-process 304 189 Bauxite and alumina 539 609 Purchased raw materials 501 529 Operating supplies 150 146 $ 1,767 $ 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 second quarter and the six months ended June 30, 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 second quarter ended June 30, 2018: Cost of goods sold $ 2,632 $ 121 $ 2,753 Provision for income taxes 180 (22 ) 158 Net income 230 (99 ) 131 Net income attributable to noncontrolling interest 155 (34 ) 121 Net income attributable to Alcoa Corporation 75 (65 ) 10 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 0.40 $ (0.35 ) $ 0.05 Diluted 0.39 (0.34 ) 0.05 Statement of Consolidated Comprehensive Income for the second quarter ended June 30, 2018: Comprehensive loss $ (366 ) $ (99 ) $ (465 ) Comprehensive loss attributable to noncontrolling interest (4 ) (34 ) (38 ) Comprehensive loss attributable to Alcoa Corporation (362 ) (65 ) (427 ) Statement of Consolidated Operations for the six months ended June 30, 2018: Cost of goods sold $ 5,013 $ 42 $ 5,055 Provision for income taxes 318 (9 ) 309 Net income 504 (33 ) 471 Net income attributable to noncontrolling interest 279 (13 ) 266 Net income attributable to Alcoa Corporation 225 (20 ) 205 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 1.21 $ (0.11 ) $ 1.10 Diluted 1.19 (0.10 ) 1.09 Statement of Consolidated Comprehensive Income for the six months ended June 30, 2018: Comprehensive income $ 527 $ (33 ) $ 494 Comprehensive income attributable to noncontrolling interest 87 (13 ) 74 Comprehensive income attributable to Alcoa Corporation 440 (20 ) 420 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 six months ended June 30, 2018: Net income $ 504 $ (33 ) $ 471 Deferred income taxes (31 ) (9 ) (40 ) (Increase) in inventories (267 ) 42 (225 ) 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 June 30, 2019 and for the six months then ended: As Computed under LIFO As Reported under Average Cost Effect of Change Statement of Consolidated Operations for the second quarter ended June 30, 2019: Cost of goods sold $ 2,163 $ 2,189 $ 26 Provision for income taxes 119 116 (3 ) Net loss (270 ) (293 ) (23 ) Net income attributable to noncontrolling interest 108 109 1 Net loss attributable to Alcoa Corporation (378 ) (402 ) (24 ) Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ (2.04 ) $ (2.17 ) $ (0.13 ) Diluted (2.04 ) (2.17 ) (0.13 ) Statement of Consolidated Comprehensive Income for the second quarter ended June 30, 2019: Comprehensive loss $ (140 ) $ (163 ) $ (23 ) Comprehensive income attributed to noncontrolling interest 109 110 1 Comprehensive loss attributable to Alcoa Corporation (249 ) (273 ) (24 ) Statement of Consolidated Operations for the six months ended June 30, 2019: Cost of goods sold $ 4,391 $ 4,369 $ (22 ) Provision for income taxes 256 266 10 Net loss (363 ) (351 ) 12 Net income attributable to noncontrolling interest 235 250 15 Net loss attributable to Alcoa Corporation (598 ) (601 ) (3 ) Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ (3.22 ) $ (3.24 ) $ (0.02 ) Diluted (3.22 ) (3.24 ) (0.02 ) Statement of Consolidated Comprehensive Income for the six months ended June 30, 2019: Comprehensive loss $ (493 ) $ (481 ) $ 12 Comprehensive income attributable to noncontrolling interest 245 260 15 Comprehensive loss attributable to Alcoa Corporation (738 ) (741 ) (3 ) Consolidated Balance Sheet as of June 30, 2019: Inventories $ 1,573 $ 1,767 $ 194 Prepaid expenses and other current assets 238 250 12 Retained deficit (257 ) (31 ) 226 Noncontrolling interest 1,984 1,964 (20 ) Statement of Consolidated Cash Flows for the six months ended June 30, 2019: Net loss $ (363 ) $ (351 ) $ 12 Deferred income taxes 54 64 10 Decrease in inventories 75 53 (22 ) |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost were as follows: Second quarter ended June 30, Six months ended June 30, Pension benefits 2019 2018 2019 2018 Service cost $ 12 $ 14 $ 24 $ 28 Interest cost (1) 56 55 112 114 Expected return on plan assets (1) (82 ) (82 ) (163 ) (172 ) Recognized net actuarial loss (1) 42 52 84 107 Amortization of prior service cost (1) 2 2 3 4 Settlements (2) — 167 — 167 Curtailments (2) 38 — 38 5 Net periodic benefit cost $ 68 $ 208 $ 98 $ 253 Second quarter ended June 30, Six months ended June 30, Other postretirement benefits 2019 2018 2019 2018 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost (1) 10 9 18 18 Recognized net actuarial loss (1) 2 4 5 7 Amortization of prior service benefit (1) — (1 ) — (1 ) Curtailments (2) — — — (28 ) Net periodic benefit cost $ 13 $ 13 $ 25 $ (2 ) (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 Statements of Consolidated Operations (see Note C) and of Cash Flows. |
Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans | The following table presents certain information and the financial impacts of this action on the accompanying Consolidated Financial Statements: Number of affected plan participants Weighted average discount rate as of December 31, 2018 Plan remeasurement date Weighted average discount rate as of plan remeasurement date Increase to accrued pension benefits liability Curtailment charge (1) ~700 3.85% May 31, 2019 3.15% $ 52 $ 38 ( 1 ) This amount represents the accelerated amortization of a portion of the existing prior service cost and was reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (see Note C) on the accompanying Statement of Consolidated Operations. |
Derivatives and Other Financi_2
Derivatives and Other Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 132 Interrelationship of forward energy price and the Consumer Price Index and price of electricity beyond forward curve Electricity: $73.85 per megawatt hour in 2019 to $53.33 per megawatt hour in 2021 Liabilities: Embedded aluminum derivative 236 Interrelationship of LME price to the amount of megawatt hours of energy needed to produce the forecasted metric tons of aluminum Aluminum: $1,782 per metric ton in 2019 to $2,373 per metric ton in 2027 Electricity: rate of 4 million megawatt hours per year Embedded aluminum derivatives 275 Price of aluminum beyond forward curve Aluminum: $2,473 per metric ton in October 2029 to $2,481 per metric ton in December 2029 (two contracts) and $2,772 per metric ton in 2036 (one contract) Midwest premium: $0.1850 per pound in 2019, 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: $1,782 per metric ton in July 2019 to $1,800 per metric ton in September 2019 Midwest premium: $0.1850 per pound in July 2019 and to $0.1900 per pound in September 2019 Electricity: rate of 2 million megawatt hours per year Embedded aluminum derivative 4 Interrelationship of LME price to overall energy price Aluminum: $1,824 per metric ton in July 2019 to $1,847 per metric ton in December 2019 Embedded credit derivative 20 Estimated spread between the respective 30-year debt yield of Alcoa Corporation and the counterparty 3.19% (30-year debt yields: Alcoa Corporation – 6.94% (estimated) and counterparty – 3.75%) |
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: June 30, 2019 December 31, 2018 Asset Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Financial contract $ 77 $ 70 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives — 41 Financial contract 55 42 Total derivatives designated as hedging instruments 132 153 Total Asset Derivatives $ 132 $ 153 Liability Derivatives Derivatives designated as hedging instruments: Fair value of derivative instruments – current: Embedded aluminum derivatives $ 43 $ 46 Fair value of derivative instruments – noncurrent: Embedded aluminum derivatives 472 218 Total derivatives designated as hedging instruments 515 264 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 16 16 Total derivatives not designated as hedging instruments 20 25 Total Liability Derivatives $ 535 $ 289 |
Schedule of Reconciliation of Activity for Derivative Contracts | The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities Second quarter ended June 30, 2019 Financial contracts Embedded aluminum derivatives Embedded credit derivative Balance at April 1, 2019 $ 137 $ 594 $ 21 Total gains or losses (realized and unrealized) included in: Sales — (12 ) — Cost of goods sold (17 ) — (2 ) Other expenses, net — — 1 Other comprehensive income (loss) 14 (66 ) — Other (2 ) (1 ) — Balance at June 30, 2019 $ 132 $ 515 $ 20 Change in unrealized gains or losses included in earnings for derivative instruments held at June 30, 2019: Other expenses, net $ — $ — $ 1 Assets Liabilities Six months ended June 30, 2019 Embedded aluminum derivatives Financial contracts Embedded aluminum derivatives Embedded credit derivative Opening balance – January 1, 2019 $ 41 $ 112 $ 269 $ 20 Total gains or losses (realized and unrealized) included in: Sales — — (25 ) — Cost of goods sold — (59 ) — (2 ) Other expenses, net — — (2 ) 2 Other comprehensive (loss) income (41 ) 82 278 — Other — (3 ) (5 ) — Closing balance – June 30, 2019 $ — $ 132 $ 515 $ 20 Change in unrealized gains or losses included in earnings for derivative instruments held at June 30, 2019: Other expenses, net $ — $ — $ (2 ) $ 2 |
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: June 30, 2019 December 31, 2018 Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 834 $ 834 $ 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 1,804 1,944 1,801 1,863 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Six-months ended June 30, 2019 2018 (Loss) income before income taxes $ (85 ) $ 780 Estimated annualized effective tax rate 137.1 % 40.1 % Income tax (benefit) expense $ (116 ) $ 313 Unfavorable (favorable) tax impact related to losses in jurisdictions with no tax benefit 381 (4 ) Discrete tax charge 1 — Provision for income taxes $ 266 $ 309 |
Leasing (Tables)
Leasing (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2019: Amounts recognized in the Consolidated Balance Sheet at June 30, 2019: Properties, plants and equipment, net $ 175 Other current liabilities 66 Other noncurrent liabilities and deferred credits 109 Total operating lease liabilities $ 175 |
Schedule of Weighted Average Lease Term and Weighted Average Discount Rate | The weighted average lease term and weighted average discount rate as of June 30, 2019 were as follows: Weighted average lease term Operating leases 4.1 years Weighted average discount rate Operating leases 5.3% |
Schedule of Future Cash Flows Related to Operating Lease Obligations | The future cash flows related to the operating lease obligations as of June 30, 2019 were as follows: Year Ending December 31, Operating leases 2019 (excluding the six months ended June 30) $ 41 2020 68 2021 51 2022 18 2023 10 Thereafter 22 Total lease payments (undiscounted) 210 Less: discount to net present value (35 ) Total $ 175 |
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) | 6 Months Ended |
Jun. 30, 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 (10 ) Liabilities incurred 2 Reversals of previously recorded liabilities (1 ) Balance at June 30, 2019 $ 271 |
Schedule of Estimate Timing of Cash Outflows on Environmental Reserves | The estimated timing of cash outflows on the environmental remediation reserve at June 30, 2019 is as follows: 2019 $ 21 2020 - 2024 130 Thereafter 120 Total $ 271 |
Other Expenses, Net (Tables)
Other Expenses, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Expenses, Net | Second quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 Equity loss (income) $ 15 $ (3 ) $ 27 $ (1 ) Foreign currency losses (gains), net 5 (30 ) 17 (27 ) Net loss (gain) from asset sales 7 2 (1 ) (3 ) Net loss (gain) on mark-to-market derivative instruments (J) — 6 — (11 ) Non-service costs – Pension & OPEB (I) 30 39 59 77 Other (7 ) (5 ) (11 ) (5 ) $ 50 $ 9 $ 91 $ 30 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - AWAC [Member] | Jun. 30, 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 | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | ||
Operating lease right-of-use assets | $ 175 | $ 201 |
Operating lease, liability | $ 175 | $ 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, 2019Locationkt | Dec. 31, 2009 | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 27, 2019USD ($) | Dec. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 370 | $ 231 | $ 483 | $ 212 | |||||
Curtailments related to retirement benefits | 38 | 38 | |||||||
Number of locations, curtailed the smelters as per dismissal process | Location | 2 | ||||||||
Combined operating capacity | kt | 124 | ||||||||
Curtailment of certain pension and other postretirement employee benefits | 167 | 144 | |||||||
Noncurrent portion of the reserve | $ 2 | $ 2 | |||||||
Maaden Alcoa Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Non-controlling interest, ownership percentage | 25.10% | 25.10% | 25.10% | ||||||
Maaden Alcoa Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Equity investments | $ 638 | $ 638 | $ 874 | ||||||
Ma'aden Joint Venture [Member] | Saudi Arabia [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Ownership interest percentage transferred | 25.10% | 25.10% | |||||||
Alcoa Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Equity interest | 0.00% | ||||||||
Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Project financing Investment | $ 296 | ||||||||
Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Contributions to MRC | $ 100 | ||||||||
Ma’aden [Member] | Maaden Alcoa Joint Venture [Member] | Saudi Arabia [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Ownership interest in joint venture | 74.90% | 74.90% | 74.90% | ||||||
Ma'aden Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Contributions to MRC | $ 100 | ||||||||
Ma'aden Joint Venture [Member] | Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Project financing Investment | 296 | $ 296 | |||||||
Maaden Alcoa Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Write off of MRC delinquent payables | 235 | ||||||||
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 | ||||||||
Severance costs excluding employee related cost | 3 | ||||||||
Employee related expenses excluding severance costs | 2 | 15 | |||||||
Restructuring And Other Charges [Member] | Selling, General Administrative, and Other Expenses [Member] | Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 2 | ||||||||
Exit Cost [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 5 | 108 | |||||||
Closure Cost [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 1 | 8 | |||||||
Divesture of MRC [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 319 | 319 | |||||||
Divesture of MRC [Member] | Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Write off of investment | 161 | ||||||||
Cash contribution to an equity method investment | 100 | ||||||||
Gain from write off of the fair value of debt guarantee | 1 | ||||||||
Write off delinduent payables due, forgiven | 59 | ||||||||
Miscellaneous Items Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 7 | $ 10 | |||||||
Net benefit | 1 | 1 | |||||||
Contract Termination [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 80 | 84 | |||||||
Net benefit | $ 15 | $ 15 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 370 | $ 231 | $ 483 | $ 212 |
Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 352 | 82 | 461 | 86 |
Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 18 | 149 | 22 | 126 |
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 | 3 | 1 | 2 | |
Aluminum Segment [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 353 | $ 79 | $ 460 | $ 84 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | $ 47 | $ 45 |
Cash payments | (42) | (102) |
Restructuring and other charges, net | 47 | 119 |
Other | (2) | (15) |
Restructuring reserve ending balance | 50 | 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 | 8 | 2 |
Other | (1) | |
Restructuring reserve ending balance | 10 | 5 |
Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 42 | 34 |
Cash payments | (39) | (95) |
Restructuring and other charges, net | 39 | 117 |
Other | (2) | (14) |
Restructuring reserve ending balance | $ 40 | $ 42 |
Segment Information - Schedule
Segment Information - Schedule of Operating Results of Alcoa's Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | $ 484 | $ 968 | $ 886 | $ 1,657 |
Depreciation, depletion, and amortization | 167 | 184 | 332 | 372 |
Equity income (loss) | (14) | 6 | (24) | 5 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 3,383 | 4,324 | 6,736 | 8,103 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 695 | 766 | 1,351 | 1,473 |
Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 2,688 | 3,558 | 5,385 | 6,630 |
Bauxite [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 112 | 100 | 238 | 210 |
Depreciation, depletion, and amortization | 27 | 27 | 55 | 56 |
Bauxite [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 313 | 303 | 614 | 599 |
Bauxite [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 246 | 226 | 482 | 475 |
Bauxite [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 67 | 77 | 132 | 124 |
Alumina [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 369 | 638 | 741 | 1,030 |
Depreciation, depletion, and amortization | 55 | 49 | 103 | 102 |
Equity income (loss) | 3 | 14 | 15 | 13 |
Alumina [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,309 | 1,604 | 2,623 | 2,972 |
Alumina [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 445 | 536 | 862 | 990 |
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 864 | 1,068 | 1,761 | 1,982 |
Aluminum [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 3 | 230 | (93) | 417 |
Depreciation, depletion, and amortization | 85 | 108 | 174 | 214 |
Equity income (loss) | (17) | (8) | (39) | (8) |
Aluminum [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,761 | 2,417 | 3,499 | 4,532 |
Aluminum [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 4 | 4 | 7 | 8 |
Aluminum [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | $ 1,757 | $ 2,413 | $ 3,492 | $ 4,524 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total Segment Adjusted EBITDA | $ 484 | $ 968 | $ 886 | $ 1,657 |
Transformation | 3 | (1) | 5 | (3) |
Intersegment eliminations | (1) | (152) | 85 | (76) |
Corporate expenses | (28) | (26) | (52) | (53) |
Provision for depreciation, depletion, and amortization | (174) | (192) | (346) | (386) |
Interest expense | (30) | (32) | (60) | (58) |
Other expenses, net (N) | (50) | (9) | (91) | (30) |
(Loss) income before income taxes | (177) | 289 | (85) | 780 |
Provision for income taxes | (116) | (158) | (266) | (309) |
Net income attributable to noncontrolling interest | (109) | (121) | (250) | (266) |
NET (LOSS) INCOME ATTRIBUTABLE TO ALCOA CORPORATION | (402) | 10 | (601) | 205 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges, net (C) | (370) | (231) | (483) | (212) |
Interest expense | (30) | (32) | (60) | (58) |
Other | $ (11) | $ (36) | $ (29) | $ (59) |
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] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ (1) | $ 33 |
Decrease in intersegment eliminations | $ 120 | $ 75 |
Segment and Related Information
Segment and Related Information - Schedule of Sales by Product Division (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 2,711 | $ 3,579 | $ 5,430 | $ 6,669 |
Primary Aluminum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 1,382 | 1,871 | 2,776 | 3,518 |
Alumina [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 862 | 1,068 | 1,759 | 1,981 |
Flat-Rolled Aluminum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 327 | 516 | 639 | 945 |
Energy [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 85 | 73 | 154 | 146 |
Bauxite [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 63 | 71 | 121 | 116 |
Other Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ (8) | $ (20) | $ (19) | $ (37) |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income (H), Alcoa Corporation | $ (402) | $ 10 | $ (601) | $ 205 |
Average shares outstanding – basic | 186 | 186 | 185 | 186 |
Effect of dilutive securities: | ||||
Stock options | 1 | 1 | ||
Stock units | 2 | 2 | ||
Average shares outstanding – diluted | 186 | 189 | 185 | 189 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - Stock Awards and Stock Options [Member] - shares shares in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of anti-dilutive securities | 5 | 5 |
Common shares equivalents that would have been included in diluted average shares outstanding | 1 | 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 | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Pension and other postretirement benefits | |||||
Total Other comprehensive income (loss) | $ (8) | $ (185) | $ (50) | $ (287) | |
Foreign currency translation | |||||
Other comprehensive income (loss) | 44 | (596) | 24 | (609) | |
Cash flow hedges | |||||
Total Accumulated other comprehensive loss | (4,705) | (4,705) | $ (4,565) | ||
Alcoa Corporation [Member] | |||||
Pension and other postretirement benefits | |||||
Balance at beginning of period | (2,242) | (2,685) | (2,283) | (2,786) | |
Unrecognized net actuarial (loss) gain and prior service cost/benefit | (78) | 1 | (82) | 76 | |
Tax benefit (expense) | 16 | 6 | 17 | (2) | |
Total Other comprehensive (loss) income before reclassifications, net of tax | (62) | 7 | (65) | 74 | |
Amortization of net actuarial loss and prior service cost/benefit | 83 | 224 | 128 | 260 | |
Tax expense | (11) | (48) | (12) | (50) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 72 | 176 | 116 | 210 | |
Total Other comprehensive income (loss) | 10 | 183 | 51 | 284 | |
Balance at end of period | (2,232) | (2,502) | (2,232) | (2,502) | |
Foreign currency translation | |||||
Balance at beginning of period | (2,093) | (1,466) | (2,071) | (1,467) | |
Other comprehensive income (loss) | 40 | (445) | 18 | (444) | |
Balance at end of period | (2,053) | (1,911) | (2,053) | (1,911) | |
Cash flow hedges | |||||
Balance at beginning of period | (499) | (379) | (211) | (929) | |
Net change from periodic revaluations | 80 | (231) | (272) | 404 | |
Tax (expense) benefit | (12) | 31 | 54 | (68) | |
Total Other comprehensive income (loss) before reclassifications, net of tax | 68 | (200) | (218) | 336 | |
Net amount reclassified to earnings | 10 | 27 | 1 | 40 | |
Tax benefit (expense) | 1 | (2) | 8 | (1) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 11 | 25 | 9 | 39 | |
Total Other comprehensive income (loss) | 79 | (175) | (209) | 375 | |
Balance at end of period | (420) | (554) | (420) | (554) | |
Total Accumulated other comprehensive loss | (4,705) | (4,967) | (4,705) | (4,967) | |
Alcoa Corporation [Member] | Aluminum Contracts [Member] | |||||
Cash flow hedges | |||||
Net amount reclassified to earnings | 12 | 34 | 25 | 61 | |
Alcoa Corporation [Member] | Financial Contracts [Member] | |||||
Cash flow hedges | |||||
Net amount reclassified to earnings | (6) | (7) | (32) | (20) | |
Alcoa Corporation [Member] | Foreign Exchange Contract [Member] | |||||
Cash flow hedges | |||||
Net amount reclassified to earnings | 4 | 8 | (1) | ||
Non-controlling Interest [Member] | |||||
Pension and other postretirement benefits | |||||
Balance at beginning of period | (45) | (46) | (46) | (47) | |
Unrecognized net actuarial (loss) gain and prior service cost/benefit | (3) | 2 | (3) | 3 | |
Tax benefit (expense) | (1) | ||||
Total Other comprehensive (loss) income before reclassifications, net of tax | (3) | 2 | (3) | 2 | |
Amortization of net actuarial loss and prior service cost/benefit | 1 | 2 | 1 | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 1 | 2 | 1 | ||
Total Other comprehensive income (loss) | (2) | 2 | (1) | 3 | |
Balance at end of period | (47) | (44) | (47) | (44) | |
Foreign currency translation | |||||
Balance at beginning of period | (808) | (595) | (810) | (581) | |
Other comprehensive income (loss) | 4 | (151) | 6 | (165) | |
Balance at end of period | (804) | (746) | (804) | (746) | |
Cash flow hedges | |||||
Balance at beginning of period | 37 | 31 | 31 | 51 | |
Net change from periodic revaluations | 6 | (10) | 33 | (30) | |
Tax (expense) benefit | (2) | 3 | (10) | 9 | |
Total Other comprehensive income (loss) before reclassifications, net of tax | 4 | (7) | 23 | (21) | |
Net amount reclassified to earnings | (7) | (4) | (25) | (13) | |
Tax benefit (expense) | 2 | 1 | 7 | 4 | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | (5) | (3) | (18) | (9) | |
Total Other comprehensive income (loss) | (1) | (10) | 5 | (30) | |
Balance at end of period | 36 | 21 | 36 | 21 | |
Total Accumulated other comprehensive loss | (815) | (769) | (815) | (769) | |
Non-controlling Interest [Member] | Financial Contracts [Member] | |||||
Cash flow hedges | |||||
Net amount reclassified to earnings | $ (7) | $ (4) | $ (25) | $ (13) |
Investments - Summary of Unaudi
Investments - Summary of Unaudited Financial Information for Alcoa Corporation's Equity Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments Schedule [Abstract] | ||||
Sales | $ 1,160 | $ 1,367 | $ 2,423 | $ 2,620 |
Cost of goods sold | 935 | 1,078 | 1,980 | 2,038 |
Net (loss) income | $ (29) | $ 32 | $ (77) | $ 97 |
Investments - Additional Inform
Investments - Additional Information (Detail) - Maaden Alcoa Joint Venture [Member] | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Dec. 31, 2009 | Jun. 30, 2019 | Jun. 30, 2019 | |
Investment [Line Items] | |||
Non-controlling interest, ownership percentage | 25.10% | 25.10% | 25.10% |
Saudi Arabia [Member] | Ma’aden [Member] | |||
Investment [Line Items] | |||
Ownership interest in joint venture | 74.90% | 74.90% | 74.90% |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 273 | $ 346 |
Work-in-process | 304 | 189 |
Bauxite and alumina | 539 | 609 |
Purchased raw materials | 501 | 529 |
Operating supplies | 150 | 146 |
Inventories, total | $ 1,767 | $ 1,819 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Inventory [Line Items] | |||
Retained earnings | $ (31) | $ 570 | |
Noncontrolling interest | $ 1,964 | 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 | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Statement of Consolidated Operations | ||||||
Cost of goods sold | $ 2,189 | $ 2,753 | $ 4,369 | $ 5,055 | ||
Provision for income taxes | 116 | 158 | 266 | 309 | ||
Net (loss) income | (293) | 131 | (351) | 471 | ||
Net income attributable to noncontrolling interest | 109 | 121 | 250 | 266 | ||
Net (loss) income (H), Alcoa Corporation | $ (402) | $ 10 | $ (601) | $ 205 | ||
Basic | $ (2.17) | $ 0.05 | $ (3.24) | $ 1.10 | ||
Diluted | $ (2.17) | $ 0.05 | $ (3.24) | $ 1.09 | ||
Statement of Consolidated Comprehensive Income | ||||||
Comprehensive income (loss) | $ (163) | $ (465) | $ (481) | $ 494 | ||
Comprehensive income (loss) attributable to noncontrolling interest | 110 | (38) | 260 | 74 | ||
Comprehensive income (loss) attributable to Alcoa Corporation | (273) | (427) | (741) | 420 | ||
Consolidated Balance Sheet | ||||||
Inventories | 1,767 | 1,767 | $ 1,819 | |||
Prepaid expenses and other current assets | 250 | 250 | 320 | |||
Retained earnings | (31) | (31) | 570 | |||
Noncontrolling interest | 1,964 | 1,964 | 1,970 | |||
Statement of Consolidated Cash Flows | ||||||
Net (loss) income | (293) | 131 | (351) | 471 | ||
Deferred income taxes | 64 | (40) | ||||
Decrease (Increase) in inventories (H) | 53 | (225) | ||||
Change in Accounting Principle from LIFO to Average Cost [Member] | As Computed under LIFO [Member] | ||||||
Statement of Consolidated Operations | ||||||
Cost of goods sold | 2,163 | 4,391 | ||||
Provision for income taxes | 119 | 256 | ||||
Net (loss) income | (270) | (363) | ||||
Net income attributable to noncontrolling interest | 108 | 235 | ||||
Net (loss) income (H), Alcoa Corporation | $ (378) | $ (598) | ||||
Basic | $ (2.04) | $ (3.22) | ||||
Diluted | $ (2.04) | $ (3.22) | ||||
Statement of Consolidated Comprehensive Income | ||||||
Comprehensive income (loss) | $ (140) | $ (493) | ||||
Comprehensive income (loss) attributable to noncontrolling interest | 109 | 245 | ||||
Comprehensive income (loss) attributable to Alcoa Corporation | (249) | (738) | ||||
Consolidated Balance Sheet | ||||||
Inventories | 1,573 | 1,573 | ||||
Prepaid expenses and other current assets | 238 | 238 | ||||
Retained earnings | (257) | (257) | ||||
Noncontrolling interest | 1,984 | 1,984 | ||||
Statement of Consolidated Cash Flows | ||||||
Net (loss) income | (270) | (363) | ||||
Deferred income taxes | 54 | |||||
Decrease (Increase) in inventories (H) | 75 | |||||
Change in Accounting Principle from LIFO to Average Cost [Member] | Effect of Change [Member] | ||||||
Statement of Consolidated Operations | ||||||
Cost of goods sold | 26 | (22) | ||||
Provision for income taxes | (3) | 10 | ||||
Net (loss) income | (23) | 12 | ||||
Net income attributable to noncontrolling interest | 1 | 15 | ||||
Net (loss) income (H), Alcoa Corporation | $ (24) | $ (3) | ||||
Basic | $ (0.13) | $ (0.02) | ||||
Diluted | $ (0.13) | $ (0.02) | ||||
Statement of Consolidated Comprehensive Income | ||||||
Comprehensive income (loss) | $ (23) | $ 12 | ||||
Comprehensive income (loss) attributable to noncontrolling interest | 1 | 15 | ||||
Comprehensive income (loss) attributable to Alcoa Corporation | (24) | (3) | ||||
Consolidated Balance Sheet | ||||||
Inventories | 194 | 194 | ||||
Prepaid expenses and other current assets | 12 | 12 | ||||
Retained earnings | 226 | 226 | ||||
Noncontrolling interest | (20) | (20) | ||||
Statement of Consolidated Cash Flows | ||||||
Net (loss) income | $ (23) | 12 | ||||
Deferred income taxes | 10 | |||||
Decrease (Increase) in inventories (H) | $ (22) | |||||
Change in Accounting Principle from LIFO to Average Cost [Member] | As Originally Reported [Member] | ||||||
Statement of Consolidated Operations | ||||||
Cost of goods sold | 2,632 | 5,013 | ||||
Provision for income taxes | 180 | 318 | ||||
Net (loss) income | 230 | 504 | ||||
Net income attributable to noncontrolling interest | 155 | 279 | ||||
Net (loss) income (H), Alcoa Corporation | $ 75 | $ 225 | ||||
Basic | $ 0.40 | $ 1.21 | ||||
Diluted | $ 0.39 | $ 1.19 | ||||
Statement of Consolidated Comprehensive Income | ||||||
Comprehensive income (loss) | $ (366) | $ 527 | ||||
Comprehensive income (loss) attributable to noncontrolling interest | (4) | 87 | ||||
Comprehensive income (loss) attributable to Alcoa Corporation | (362) | 440 | ||||
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 | 230 | 504 | ||||
Deferred income taxes | (31) | |||||
Decrease (Increase) in inventories (H) | (267) | |||||
Change in Accounting Principle from LIFO to Average Cost [Member] | Effect of Change [Member] | ||||||
Statement of Consolidated Operations | ||||||
Cost of goods sold | 121 | 42 | ||||
Provision for income taxes | (22) | (9) | ||||
Net (loss) income | (99) | (33) | ||||
Net income attributable to noncontrolling interest | (34) | (13) | ||||
Net (loss) income (H), Alcoa Corporation | $ (65) | $ (20) | ||||
Basic | $ (0.35) | $ (0.11) | ||||
Diluted | $ (0.34) | $ (0.10) | ||||
Statement of Consolidated Comprehensive Income | ||||||
Comprehensive income (loss) | $ (99) | $ (33) | ||||
Comprehensive income (loss) attributable to noncontrolling interest | (34) | (13) | ||||
Comprehensive income (loss) attributable to Alcoa Corporation | (65) | (20) | ||||
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 | $ (99) | (33) | ||||
Deferred income taxes | (9) | |||||
Decrease (Increase) in inventories (H) | $ 42 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailments(2) | $ (38) | $ (38) | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 12 | $ 14 | 24 | $ 28 |
Interest cost(1) | 56 | 55 | 112 | 114 |
Expected return on plan assets(1) | (82) | (82) | (163) | (172) |
Recognized net actuarial loss(1) | 42 | 52 | 84 | 107 |
Amortization of prior service cost(1) | 2 | 2 | 3 | 4 |
Settlements(2) | 167 | 167 | ||
Curtailments(2) | 38 | 38 | 5 | |
Net periodic benefit cost | 68 | 208 | 98 | 253 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost(1) | 10 | 9 | 18 | 18 |
Recognized net actuarial loss(1) | 2 | 4 | 5 | 7 |
Amortization of prior service cost(1) | (1) | (1) | ||
Curtailments(2) | (28) | |||
Net periodic benefit cost | $ 13 | $ 13 | $ 25 | $ (2) |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Additional Information (Detail) $ in Millions | 1 Months Ended |
Jun. 30, 2019USD ($)Employee | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Collective bargaining agreement term | 6 years |
Number of employees affected the change in defined benefit plans | Employee | 700 |
Percentage of employers contribution in defined benefit plans | 12.00% |
Additional contributions in defined benefit plans | $ | $ 2 |
Period to improve financial position of the target benefit plan | 3 years |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Participant | Jun. 30, 2018USD ($) | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment charge | $ 167 | $ 144 | ||
Action# 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of affected plan participants | Participant | 700 | |||
Weighted average discount rate | 3.15% | 3.85% | ||
Plan remeasurement date | May 31, 2019 | |||
Increase to accrued pension benefits liability | $ 52 | |||
Curtailment charge | $ 38 |
Derivatives and Other Financi_3
Derivatives and Other Financial Instruments - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)Derivative | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)MWhSmelterRefineryDerivativekt | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)MWhkt | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of derivative instruments | Derivative | 1 | 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 | 2,450 | 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 June 30, 2019 and December 31, 2018, the financial contract hedges forecasted electricity purchases of 5,129,784 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 | $ 77 | ||||
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 | $ 3 | $ 3 | $ 2 | ||
Fair value of derivative contracts recorded as liabilities | 41 | $ 41 | $ 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 | 5,129,784 | 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 | $ 43 | ||||
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 | 5 | $ (55) | (3) | $ 13 | |
Realized gain (loss) on derivatives | $ (8) | $ (6) | $ (12) | $ (7) |
Derivatives and Other Financi_4
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 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 | $ | $ 132 | $ 153 |
Derivative Liabilities, Fair value | $ | 535 | $ 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 | $ | $ 132 | |
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 | 73.85 | |
Maturity date of contract | 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 | 53.33 | |
Maturity date of contract | 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 | $ | $ 236 | |
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] | ||
Maturity date of contract | 2019 | |
Expected future aluminum prices | 1,782 | |
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] | ||
Maturity date of contract | 2027 | |
Expected future aluminum prices | 2,373 | |
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 | $ | $ 275 | |
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 | 2,473 | |
Maturity year of contract | 2029-10 | |
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 | 2,481 | |
Maturity year of contract | 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] | ||
Maturity date of contract | 2019 | |
Midwest Premium | $ / lb | 0.1850 | |
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] | ||
Maturity date of contract | 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] | ||
Maturity date of contract | 2036 | |
Expected future aluminum prices | 2,772 | |
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] | ||
Maturity date of contract | 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 | 1,782 | |
Maturity year of contract | 2019-07 | |
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 | 1,800 | |
Maturity year of contract | 2019-09 | |
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] | ||
Maturity year of contract | 2019-07 | |
Midwest Premium | $ / lb | 0.1850 | |
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] | ||
Maturity year of contract | 2019-09 | |
Midwest Premium | $ / lb | 0.1900 | |
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 | $ | $ 4 | |
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 | 1,824 | |
Maturity year of contract | 2019-07 | |
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 | 1,847 | |
Maturity year of contract | 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 | $ | $ 20 | |
Percentage of credit spread | 3.19% | |
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 | 3.75% | |
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 | 6.94% |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | $ 132 | $ 153 |
Fair value liability derivatives | 535 | 289 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | 132 | 153 |
Fair value liability derivatives | 515 | 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 | 77 | 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 | 55 | 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 | 43 | 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 | 472 | 218 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 20 | 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 | $ 16 | $ 16 |
Derivatives and Other Financi_6
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Financial Contracts [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | $ 137 | $ 112 |
Other comprehensive income (loss) | 14 | 82 |
Fair value measurement, Assets, Other | (2) | (3) |
Fair value measurement, Assets, Ending balance | 132 | 132 |
Financial Contracts [Member] | Sales [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 0 | 0 |
Financial Contracts [Member] | Cost of Goods Sold [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (17) | (59) |
Financial Contracts [Member] | Other Expense [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | 0 | 0 |
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 income (loss) | (41) | |
Fair value measurement, Assets, Other | 0 | |
Fair value measurement, Assets, Ending balance | 0 | 0 |
Fair value measurement, Liabilities, Beginning balance | 594 | 269 |
Fair value measurement, Liabilities, Cost of goods sold | 0 | 0 |
Fair value measurement, Liabilities | (66) | 278 |
Fair value measurement, Liabilities, Other | (1) | (5) |
Fair value measurement, Liabilities, Ending balance | 515 | 515 |
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 | (12) | (25) |
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) | |
Embedded Credit Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Beginning balance | 21 | 20 |
Fair value measurement, Liabilities, Cost of goods sold | (2) | (2) |
Fair value measurement, Liabilities | 0 | 0 |
Fair value measurement, Liabilities, Other | 0 | 0 |
Fair value measurement, Liabilities, Ending balance | 20 | 20 |
Embedded Credit Derivative [Member] | Sales [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | 0 | 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 | 2 |
Fair value measurement, Liabilities, Other expenses, net | $ 1 | $ 2 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 834 | $ 1,113 |
Restricted cash | 3 | 3 |
Long-term debt due within one year | 1 | 1 |
Long-term debt, less amount due within one year | 1,804 | 1,801 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 834 | 1,113 |
Restricted cash | 3 | 3 |
Long-term debt due within one year | 1 | 1 |
Long-term debt, less amount due within one year | $ 1,944 | $ 1,863 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Line Items] | ||||
Estimated annualized effective tax rate | 137.10% | 72.20% | 137.10% | 40.10% |
Effective federal statutory tax rate | 21.00% | |||
Income tax expense benefits on losses valuation reserves | $ 0 | |||
Provision For Income Taxes [Member] | ||||
Income Taxes [Line Items] | ||||
Charges resulting from estimated annualized effective tax rate | $ 60,000,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
(Loss) income before income taxes | $ (177) | $ 289 | $ (85) | $ 780 | |
Estimated annualized effective tax rate | 137.10% | 72.20% | 137.10% | 40.10% | |
Income tax (benefit) expense | $ (116) | $ 313 | |||
Unfavorable (favorable) tax impact related to losses in jurisdictions with no tax benefit | 381 | (4) | |||
Discrete tax charge | 1 | ||||
Provision for income taxes | $ 116 | $ 158 | $ 266 | $ 309 |
Leasing - Additional Informatio
Leasing - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | |
Leases [Line Items] | |||
Operating lease right-of-use assets | $ 175 | $ 175 | $ 201 |
Operating lease, liability | 175 | 175 | $ 201 |
Costs from operating leases | 20 | 39 | |
Short-term rental expense | 1 | 4 | |
Variable lease payments | 5 | 8 | |
New lease cost | $ 7 | $ 7 | |
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 | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 175 | $ 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 | $ 109 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:DeferredCreditsAndOtherLiabilitiesNoncurrent | |
Total operating lease liabilities | $ 175 | $ 201 |
Leasing - Schedule of Weighted
Leasing - Schedule of Weighted Average Lease Term and Weighted Average Discount Rate (Detail) | Jun. 30, 2019 |
Weighted average lease term | |
Operating leases | 4 years 1 month 6 days |
Weighted average discount rate | |
Operating leases | 5.30% |
Leasing - Schedule of Future Ca
Leasing - Schedule of Future Cash Flows Related to Operating Lease Obligations (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 (excluding the six months ended June 30) | $ 41 | |
2020 | 68 | |
2021 | 51 | |
2022 | 18 | |
2023 | 10 | |
Thereafter | 22 | |
Total lease payments (undiscounted) | 210 | |
Less: discount to net present value | (35) | |
Total | $ 175 | $ 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Beginning balance | $ 280 | $ 294 | |
Cash payments | (10) | (25) | |
Liabilities incurred | $ 1 | 2 | 19 |
Reversals of previously recorded liabilities | (1) | (3) | |
Foreign currency translation and other | (5) | ||
Ending balance | $ 271 | $ 271 | $ 280 |
Contingencies and Commitments_2
Contingencies and Commitments - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Project | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||||
Environmental remediation reserve balance, current | $ 34 | $ 34 | $ 44 | |||
Liabilities incurred | 1 | 2 | 19 | |||
Increase (decrease) in remediation reserve | $ 15 | $ 15 | ||||
Changes to the remediation reserve due to charges | 1 | 2 | 19 | |||
Remediation reserve balance, revision | (1) | (3) | ||||
Active or future remediation for siginficant sites | 208 | 208 | 214 | |||
Remediation reserve balance | 271 | 271 | 280 | $ 294 | ||
Cost of Goods Sold [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Increase (decrease) in remediation reserve | 15 | 15 | ||||
Restructuring And Other Charges [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Liabilities incurred | 2 | 2 | ||||
Changes to the remediation reserve due to charges | 2 | 2 | ||||
Remediation reserve balance, revision | 2 | 2 | ||||
Sherwin [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Liabilities incurred | 9 | 9 | ||||
Changes to the remediation reserve due to charges | 9 | 9 | ||||
Remediation reserve balance | 38 | $ 38 | ||||
Portovesme Italy [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Remediation reserve balance, revision | 2 | 2 | ||||
Other Sites [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Liabilities incurred | 8 | 8 | ||||
Changes to the remediation reserve due to charges | $ 8 | $ 8 | ||||
Number of remediation projects | Project | 35 | |||||
Remediation reserve balance | $ 63 | $ 63 | $ 66 | |||
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 |
Contingencies and Commitments_3
Contingencies and Commitments - Estimate Timing of Cash Outflows on Environmental Reserves (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments And Contingencies Disclosure [Abstract] | |||
2019 | $ 21 | ||
2020 - 2024 | 130 | ||
Thereafter | 120 | ||
Total | $ 271 | $ 280 | $ 294 |
Contingencies and Commitments_4
Contingencies and Commitments - Additional Information - 1 (Detail) R$ in Millions | Jul. 06, 2018USD ($) | Apr. 08, 2013USD ($) | Mar. 31, 2013USD ($) | May 31, 2012USD ($) | May 31, 2012BRL (R$) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 06, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | Mar. 31, 2013BRL (R$) |
Loss Contingencies [Line Items] | ||||||||||||||
Remediation reserve balance | $ 271,000,000 | $ 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$ 220 | ||||||||||||
Percentage of penalty of the gross disallowed amount | 50.00% | |||||||||||||
Value added tax receivable | $ 41,000,000 | R$ 82 | ||||||||||||
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] | Maximum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 57,000,000 | |||||||||||||
Tax Year 2006 Through 2009 [Member] | Tax Authority, Spain [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Total combined assessments | $ 152,000,000 | € 131,000,000 |
Contingencies and Commitments_5
Contingencies and Commitments - Additional Information - 2 (Detail) - USD ($) $ in Millions | Jun. 27, 2019 | Dec. 31, 2009 | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Other Noncurrent Liabilities and Deferred Credits [Member] | |||||
Other Commitments [Line Items] | |||||
Fair value of the guarantees for MRC | $ 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] | |||||
Project financing Investment | 1,179 | ||||
Maaden Alcoa Joint Venture [Member] | |||||
Other Commitments [Line Items] | |||||
Non-controlling interest, ownership percentage | 25.10% | 25.10% | 25.10% | ||
Saudi Arabia [Member] | Ma’aden [Member] | Maaden Alcoa Joint Venture [Member] | |||||
Other Commitments [Line Items] | |||||
Ownership interest in joint venture | 74.90% | 74.90% | 74.90% | ||
Maaden Alcoa Joint Venture [Member] | |||||
Other Commitments [Line Items] | |||||
Equity investments | $ 638 | $ 638 | $ 874 | ||
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | ||||
Equity loss (income) | $ 15 | $ (3) | $ 27 | $ (1) |
Foreign currency losses (gains), net | 5 | (30) | 17 | (27) |
Net loss (gain) from asset sales | 7 | 2 | (1) | (3) |
Net loss (gain) on mark-to-market derivative instruments | 6 | (11) | ||
Non-service costs – Pension & OPEB | 30 | 39 | 59 | 77 |
Other | (7) | (5) | (11) | (5) |
Other expenses, net | $ 50 | $ 9 | $ 91 | $ 30 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Jun. 26, 2019Employee | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jul. 05, 2019Plant |
Subsequent Event [Line Items] | ||||||||||
Restructuring and other charges | $ 370 | $ 231 | $ 483 | $ 212 | ||||||
Payments for restructuring | $ 42 | $ 102 | ||||||||
Spain [Member] | Scenario, Forecast [Member] | Aviles and La Coruna Smelters [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Restructuring and other charges | $ 135 | |||||||||
Charge for working capital commitment and write-off of remaining net book value of plants. | 40 | |||||||||
PARTER Capital Group AG [Member] | Spain [Member] | Aviles and La Coruna Smelters [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of plants to be purchased | Plant | 2 | |||||||||
PARTER Capital Group AG [Member] | Spain [Member] | Scenario, Forecast [Member] | Aviles and La Coruna Smelters [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Payments for restructuring | $ 95 | |||||||||
Aluminerie De Becancour Incorporation Smelter [Member] | Alcoa Corporation [Member] | Québec, Canada [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Ownership interest percentage | 74.95% | |||||||||
Aluminerie De Becancour Incorporation Smelter [Member] | Rio Tinto Alcan Inc [Member] | Québec, Canada [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Non-controlling interest, ownership percentage | 25.05% | |||||||||
Aluminerie De Becancour Incorporation Smelter [Member] | Québec, Canada [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Labor agreement period | 6 years | |||||||||
Number of unionized employees recall | Employee | 900 | |||||||||
Unionized employees recall to be completed, period | 8 months | |||||||||
Aluminerie De Becancour Incorporation Smelter [Member] | Québec, Canada [Member] | Scenario, Forecast [Member] | Minimum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Charges related to restart process | $ 40 | |||||||||
Charges related to restart process after tax | $ 30 | |||||||||
Aluminerie De Becancour Incorporation Smelter [Member] | Québec, Canada [Member] | Scenario, Forecast [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Charges related to restart process | $ 50 | |||||||||
Charges related to restart process after tax | $ 35 |