Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AA | ||
Entity Registrant Name | ALCOA CORP | ||
Entity Central Index Key | 0001675149 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 185,915,242 | ||
Entity Public Float | $ 4.3 | ||
Entity File Number | 1-37816 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-1789115 | ||
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 | PA | ||
Entity Address, Postal Zip Code | 15212-5858 | ||
City Area Code | 412 | ||
Local Phone Number | 315-2900 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference certain information from the registrant’s Definitive Proxy Statement for its 2020 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A. |
Statement of Consolidated Opera
Statement of Consolidated Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Sales (E) | $ 10,433 | $ 13,403 | $ 11,652 |
Cost of goods sold (exclusive of expenses below) (I) | 8,537 | 10,053 | 8,950 |
Selling, general administrative, and other expenses | 280 | 248 | 280 |
Research and development expenses | 27 | 31 | 32 |
Provision for depreciation, depletion, and amortization | 713 | 733 | 750 |
Restructuring and other charges, net (D) | 1,031 | 527 | 309 |
Interest expense (T) | 121 | 122 | 104 |
Other expenses, net (T) | 162 | 64 | 27 |
Total costs and expenses | 10,871 | 11,778 | 10,452 |
(Loss) income before income taxes | (438) | 1,625 | 1,200 |
Provision for income taxes (I & P) | 415 | 732 | 592 |
Net (loss) income (I) | (853) | 893 | 608 |
Less: Net income attributable to noncontrolling interest (I) | 272 | 643 | 329 |
Net (loss) income attributable to Alcoa Corporation (I) | $ (1,125) | $ 250 | $ 279 |
Earnings per share attributable to Alcoa Corporation common shareholders (F & I): | |||
Basic | $ (6.07) | $ 1.34 | $ 1.51 |
Diluted | $ (6.07) | $ 1.33 | $ 1.49 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income, Alcoa Corporation | $ (1,125) | $ 250 | $ 279 |
Net (loss) income, Noncontrolling interest | 272 | 643 | 329 |
Net (loss) income | (853) | 893 | 608 |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits, Alcoa Corporation | 1 | 503 | (456) |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits, Noncontrolling interest | (10) | 1 | 9 |
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | (9) | 504 | (447) |
Foreign currency translation adjustments, Alcoa Corporation | (89) | (604) | 188 |
Foreign currency translation adjustments, Noncontrolling interest | (24) | (229) | 96 |
Foreign currency translation adjustments | (113) | (833) | 284 |
Net change in unrecognized gains/losses on cash flow hedges, Alcoa Corporation | (321) | 718 | (1,139) |
Net change in unrecognized gains/losses on cash flow hedges, Noncontrolling interest | (11) | (20) | 50 |
Net change in unrecognized gains/losses on cash flow hedges | (332) | 698 | (1,089) |
Total Other comprehensive income (loss), net of tax, Alcoa Corporation | (409) | 617 | (1,407) |
Total Other comprehensive income (loss), net of tax, Noncontrolling interest | (45) | (248) | 155 |
Total Other comprehensive income (loss), net of tax | (454) | 369 | (1,252) |
Comprehensive (loss) income, Alcoa Corporation | (1,534) | 867 | (1,128) |
Comprehensive (loss) income, Noncontrolling interest | 227 | 395 | 484 |
Comprehensive (loss) income | $ (1,307) | $ 1,262 | $ (644) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents (O) | $ 879 | $ 1,113 |
Receivables from customers | 546 | 830 |
Other receivables | 114 | 173 |
Inventories (I) | 1,644 | 1,819 |
Fair value of derivative instruments (O) | 59 | 73 |
Prepaid expenses and other current assets (I) | 288 | 320 |
Total current assets | 3,530 | 4,328 |
Properties, plants, and equipment, net (J) | 7,916 | 8,327 |
Investments (H) | 1,113 | 1,360 |
Deferred income taxes (P) | 642 | 560 |
Fair value of derivative instruments (O) | 18 | 82 |
Other noncurrent assets (T) | 1,412 | 1,475 |
Total Assets | 14,631 | 16,132 |
Current liabilities: | ||
Accounts payable, trade | 1,484 | 1,663 |
Accrued compensation and retirement costs | 413 | 400 |
Taxes, including income taxes | 104 | 426 |
Fair value of derivative instruments (O) | 67 | 82 |
Other current liabilities | 494 | 347 |
Long-term debt due within one year (L & O) | 1 | 1 |
Total current liabilities | 2,563 | 2,919 |
Long-term debt, less amount due within one year (L & O) | 1,799 | 1,801 |
Accrued pension benefits (N) | 1,505 | 1,407 |
Accrued other postretirement benefits (N) | 749 | 868 |
Asset retirement obligations (Q) | 606 | 529 |
Environmental remediation (R) | 296 | 236 |
Fair value of derivative instruments (O) | 581 | 261 |
Noncurrent income taxes (P) | 276 | 301 |
Other noncurrent liabilities and deferred credits (T) | 370 | 222 |
Total liabilities | 8,745 | 8,544 |
Contingencies and commitments (R) | ||
Alcoa Corporation shareholders’ equity: | ||
Common stock (M) | 2 | 2 |
Additional capital | 9,639 | 9,611 |
Retained (deficit) earnings (I) | (555) | 570 |
Accumulated other comprehensive loss (G) | (4,974) | (4,565) |
Total Alcoa Corporation shareholders’ equity | 4,112 | 5,618 |
Noncontrolling interest (A & I) | 1,774 | 1,970 |
Total equity | 5,886 | 7,588 |
Total Liabilities and Equity | $ 14,631 | $ 16,132 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash from Operations | |||
Net (loss) income (I) | $ (853) | $ 893 | $ 608 |
Adjustments to reconcile net (loss) income to cash from operations: | |||
Depreciation, depletion, and amortization | 713 | 733 | 752 |
Deferred income taxes (I & P) | 15 | (30) | 168 |
Equity earnings, net of dividends (H) | 21 | 17 | 9 |
Restructuring and other charges, net (D) | 1,031 | 527 | 309 |
Net gain from investing activities—asset sales (T) | (3) | (116) | |
Net periodic pension benefit cost (N) | 119 | 146 | 111 |
Stock-based compensation (M) | 30 | 35 | 24 |
Provision for bad debt expense | 21 | ||
Other | 30 | (59) | 32 |
Changes in assets and liabilities, excluding effects of divestitures and foreign currency translation adjustments: | |||
Decrease (Increase) in receivables | 283 | (43) | (118) |
Decrease (Increase) in inventories (I) | 137 | (306) | (279) |
Decrease (Increase) in prepaid expenses and other current assets | 27 | (32) | 43 |
(Decrease) Increase in accounts payable, trade | (153) | (165) | 377 |
(Decrease) in accrued expenses | (175) | (319) | (563) |
(Decrease) Increase in taxes, including income taxes | (330) | 241 | 111 |
Pension contributions (N) | (173) | (992) | (106) |
(Increase) in noncurrent assets | (24) | (101) | (99) |
(Decrease) in noncurrent liabilities | (30) | (97) | (39) |
Cash provided from operations | 686 | 448 | 1,224 |
Financing Activities | |||
Cash paid to former parent company related to separation (A) | (247) | ||
Net change in short-term borrowings (original maturities of three months or less) | 7 | ||
Additions to debt (original maturities greater than three months) (L) | 560 | 21 | |
Payments on debt (original maturities greater than three months) (L) | (7) | (135) | (60) |
Proceeds from the exercise of employee stock options (M) | 2 | 23 | 43 |
Repurchase of common stock (M) | (50) | ||
Financial contributions for the divestiture of businesses (C) | (12) | ||
Contributions from noncontrolling interest (A) | 51 | 149 | 80 |
Distributions to noncontrolling interest | (472) | (827) | (342) |
Other | (6) | (8) | (8) |
Cash used for financing activities | (444) | (288) | (506) |
Investing Activities | |||
Capital expenditures | (379) | (399) | (405) |
Proceeds from the sale of assets and businesses (C) | 23 | 1 | 245 |
Additions to investments (H) | (112) | (7) | (66) |
Cash used for investing activities | (468) | (405) | (226) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (7) | (4) | 14 |
Net change in cash and cash equivalents and restricted cash | (233) | (249) | 506 |
Cash and cash equivalents and restricted cash at beginning of year | 1,116 | 1,365 | 859 |
Cash and cash equivalents and restricted cash at end of year | $ 883 | $ 1,116 | $ 1,365 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Capital [Member] | Retained (Deficit) Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Beginning Balance at Dec. 31, 2016 | $ 7,818 | $ 2 | $ 9,531 | $ 39 | $ (3,775) | $ 2,021 |
Net (loss) income | 608 | 279 | 329 | |||
Other comprehensive (loss) income (G) | (1,252) | (1,407) | 155 | |||
Stock-based compensation (M) | 24 | 24 | ||||
Common stock issued: Compensation plans (M) | 43 | 43 | ||||
Contributions | 80 | 80 | ||||
Distributions | (342) | (342) | ||||
Other | (11) | (8) | (3) | |||
Ending Balance at Dec. 31, 2017 | 6,968 | 2 | 9,590 | 318 | (5,182) | 2,240 |
Net (loss) income | 893 | 250 | 643 | |||
Other comprehensive (loss) income (G) | 369 | 617 | (248) | |||
Stock-based compensation (M) | 35 | 35 | ||||
Common stock issued: Compensation plans (M) | 23 | 23 | ||||
Repurchase of common stock (M) | (50) | (50) | ||||
Contributions | 149 | 149 | ||||
Distributions | (827) | (827) | ||||
Other | 28 | 13 | 2 | 13 | ||
Ending Balance at Dec. 31, 2018 | 7,588 | 2 | 9,611 | 570 | (4,565) | 1,970 |
Net (loss) income | (853) | (1,125) | 272 | |||
Other comprehensive (loss) income (G) | (454) | (409) | (45) | |||
Stock-based compensation (M) | 30 | 30 | ||||
Common stock issued: Compensation plans (M) | 2 | 2 | ||||
Contributions | 51 | 51 | ||||
Distributions | (472) | (472) | ||||
Other | (6) | (4) | (2) | |||
Ending Balance at Dec. 31, 2019 | $ 5,886 | $ 2 | $ 9,639 | $ (555) | $ (4,974) | $ 1,774 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | A. Basis of Presentation Alcoa Corporation (or the Company) is a vertically integrated aluminum company comprised of bauxite mining, alumina refining, aluminum production (smelting, casting, and rolling), and energy generation. Through direct and indirect ownership, the Company has 30 operating locations in nine countries around the world, situated primarily in Australia, Brazil, Canada, Iceland, Norway, Spain, and the United States. 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). Separation Transaction. On November 1, 2016 (the Separation Date), ParentCo separated into two standalone, publicly-traded companies, Alcoa Corporation and Arconic, effective at 12:01 a.m. Eastern Time (the Separation Transaction). Regular-way trading of Alcoa Corporation’s common stock began with the opening of the New York Stock Exchange on November 1, 2016 under the ticker symbol “AA.” The Company’s common stock has a par value of $0.01 per share. To effect the Separation Transaction, ParentCo undertook a series of transactions to separate the net assets and certain legal entities of ParentCo, resulting in an initial cash payment of $1,072 to ParentCo by Alcoa Corporation with the net proceeds of a previous debt offering (see Note L). Additionally, $247 was paid to Arconic by the Company in 2017, including $243 from the proceeds associated with the sale of certain energy operations (see Note C) In connection with the Separation Transaction, Alcoa Corporation and Arconic entered into certain agreements to implement the legal and structural separation between the two companies, govern the relationship between the Company and Arconic after the completion of the Separation Transaction, and allocate between Alcoa Corporation and Arconic various assets, liabilities, and obligations. These agreements included a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement, Transition Services Agreement, certain Patent, Know-How, Trade Secret License and Trademark License Agreements, and Stockholder and Registration Rights Agreement. Basis of Presentation. The Consolidated Financial Statements of Alcoa Corporation are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). In accordance with GAAP, certain situations require management to make estimates based on judgments and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates upon subsequent resolution of identified matters. Certain amounts in previously issued financial statements were reclassified to conform to the current period presentation. 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 I for additional information. Principles of Consolidation. The Consolidated Financial Statements of the Company 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 applied to investments in affiliates and other joint ventures over which the Company 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, have an interest in, or operate the bauxite mines and alumina refineries within the Company’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and portions of the São Luís refinery and investment in Mineração Rio do Norte S.A., all in Brazil) and a portion (55%) of the Portland smelter (Australia) within the Company’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 (AofA), Alcoa World Alumina LLC (AWA), Alcoa World Alumina Brasil Ltda. (AWAB), and Alúmina Española, S.A. (Española). Alumina Limited’s interest in the equity of such entities is reflected as Noncontrolling interest on the accompanying Consolidated Balance Sheet. Management evaluates whether an Alcoa Corporation entity or interest is a variable interest entity and whether the Company is the primary beneficiary. Consolidation is required if both of these criteria are met. Alcoa Corporation does not have any variable interest entities requiring consolidation. Related Party Transactions. Alcoa Corporation buys products from and sells products to various related companies, consisting of entities in which the Company retains a 50% or less equity interest, at negotiated prices between the two parties. These transactions were not material to the financial position or results of operations of Alcoa Corporation for all periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | B. Summary of Significant Accounting Policies Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. Inventory Valuation. Inventories are carried at the lower of cost or market, with the cost of inventories principally determined under the average cost method. Effective January 1, 2019, the Company changed its accounting method for valuing certain inventories from last-in, first-out (LIFO) to the average cost method. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented in the Company’s Consolidated Financial Statements. See Note I for additional information. Properties, Plants, and Equipment. Properties, plants, and equipment are recorded at cost. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. Depreciation is recorded principally on the straight-line method over the estimated useful lives of the assets. Depreciation is recorded on temporarily idled facilities until such time management approves a permanent closure. The following table details the weighted-average useful lives of structures and machinery and equipment by type of operation (numbers in years): Structures Machinery and equipment Bauxite mining 35 17 Alumina refining 28 29 Aluminum smelting and casting 37 23 Energy generation 33 24 Aluminum rolling 31 21 Repairs and maintenance are charged to expense as incurred while costs for significant improvements that add productive capacity or that extend the useful life are capitalized. Gains or losses from the sale of assets are generally recorded in Other expenses, net. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable. Leases. The Company determines whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset which the Company has the right to control. Both operating and financing lease right-of-use (ROU) assets are included in Properties, plants, and equipment with the corresponding operating lease liabilities included within Other current liabilities and Other noncurrent liabilities and deferred credits, while financing lease liabilities are included in Long-term debt due within one year and Long-term debt, less amount due within one year on the Consolidated Balance Sheet. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate at the commencement date in determining the present value of lease payments unless a rate is implicit in the lease. Lease terms include options to extend the lease when it is reasonably certain that those options will be exercised. Leases with an initial term of 12 months or less, including anticipated renewals, are not recorded on the balance sheet. The Company has made a policy election not to record any non-lease components of a lease agreement in the lease liability. Variable lease payments are not presented as part of the initial ROU asset or liability recorded at the inception of a contract. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. Equity Investments. Alcoa invests in a number of privately-held companies, primarily through joint ventures and consortia, which are accounted for using the equity method. The equity method is applied in situations where the Company has the ability to exercise significant influence, but not control, over the investee. Management reviews equity investments for impairment whenever certain indicators are present suggesting that the carrying value of an investment is not recoverable. Deferred Mining Costs. Alcoa recognizes deferred mining costs during the development stage of a mine life cycle. Such costs include the construction of access and haul roads, detailed drilling and geological analysis to further define the grade and quality of the known bauxite, and overburden removal costs. These costs relate to sections of the related mines where the Company is currently extracting bauxite or preparing for production in the near term. These sections are outlined and planned incrementally and generally are mined over periods ranging from one to five years, depending on mine specifics. The amount of geological drilling and testing necessary to determine the economic viability of the bauxite deposit being mined is such that the reserves are considered to be proven, and the mining costs are amortized based on this level of reserves. Deferred mining costs are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet. Goodwill and Other Intangible Assets. Goodwill is not amortized but is reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell or exit a business. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has five reporting units, of which three are included in the Aluminum segment (smelting/casting, energy generation, and rolling operations). The remaining two reporting units are the Bauxite and Alumina segments. Of these five reporting units, only Bauxite and Alumina contain goodwill. As of December 31, 2019, the carrying value of the goodwill for Bauxite and Alumina was $50 and $100, respectively. These amounts include an allocation of goodwill held at the corporate level (see Note K). Goodwill is tested for impairment by assessing qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount or performing a quantitative assessment using a discounted cash flow method. The qualitative assessment considers factors such as general economic conditions, equity and credit markets, industry and market conditions, and earnings and cash flow trends. If the qualitative assessment indicates a possible impairment, then a quantitative impairment test is performed to determine the fair value of the reporting unit using a discounted cash flow method. Otherwise, no further analysis is required. Alcoa’s policy for its annual review of goodwill is to perform the quantitative impairment test for each of its two reporting units that contain goodwill at least once during every three-year period as part of its annual review of goodwill. Intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by type of operation (numbers in years): Software Other intangible assets Bauxite mining 3 10 Alumina refining 7 21 Aluminum smelting and casting 3 39 Energy generation — 29 Aluminum rolling 3 20 Asset Retirement Obligations. Alcoa recognizes asset retirement obligations (AROs) related to legal obligations associated with the standard operation of bauxite mines, alumina refineries, and aluminum smelters. These AROs consist primarily of costs associated with mine reclamation, closure of bauxite residue areas, spent pot lining and regulated waste materials disposal, and landfill closure. Additionally, costs are recorded as AROs upon management’s decision to permanently close and demolish certain structures and for any significant lease restoration obligations. The fair values of these AROs are recorded on a discounted basis at the time the obligation is incurred and accreted over time for the change in present value. Additionally, the Company capitalizes asset retirement costs by increasing the carrying amount of the related long-lived assets and depreciating these assets over their remaining useful life. Certain conditional asset retirement obligations related to alumina refineries, aluminum smelters, rolling mills, and energy generation facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. The fair value of these asset retirement obligations will be recorded when a reasonable estimate of the ultimate settlement date can be made. Environmental Matters. Environmental related expenditures for current operations are expensed or capitalized, as appropriate. Expenditures relating to existing conditions caused by past operations, which will not contribute to future revenues, are expensed. Liabilities are recorded when remediation costs are probable and can be reasonably estimated. The estimates also include costs related to other potentially responsible parties to the extent that Alcoa has reason to believe such parties will not fully pay their proportionate share. In instances where the Company has ongoing monitoring and maintenance responsibilities, it is Alcoa’s policy to maintain a reserve equal to five years of expected costs. The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations. Litigation Matters. For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a matter is deemed to be probable and the loss is reasonably estimable. With respect to unasserted claims or assessments, management must first determine that the probability that an assertion will be made is likely . T hen, a determination as to the likelihood of an unfavorable outcome and the ability to reasonably estimate the potential loss is made. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss. Legal costs, which are primarily for general litigation, environmental compliance, tax disputes, and general corporate matters, are expensed as incurred. Revenue Recognition. The Company recognizes revenue when it satisfies a performance obligation(s) in accordance with the provisions of a customer order or contract. This is achieved when control of the product has been transferred to the customer, which is generally determined when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation. Accordingly, the sale of Alcoa’s products to its customers represent single performance obligations for which revenue is recognized at a point in time. Revenue is based on the consideration it expects to receive in exchange for its products. Returns and other adjustments have not been material. Based on the foregoing, no significant judgment is required to determine when control of a product has been transferred to a customer. The Company considers shipping and handling activities as costs to fulfill the promise to transfer the related products. As a result, customer payments of shipping and handling costs are recorded as a component of revenue. Taxes collected (e.g., sales, use, value-added, excise) from its customers related to the sale of its products are remitted to governmental authorities and excluded from revenue. Stock-Based Compensation. Compensation expense for employee equity grants is recognized using the non-substantive vesting period approach, in which the expense (net of estimated forfeitures) is recognized ratably over the requisite service period based on the grant date fair value. The fair value of new stock options is estimated on the date of grant using a lattice-pricing model. Determining the fair value of stock options at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield, volatility, annual forfeiture rate, and exercise behavior. These assumptions may differ significantly between grant dates because of changes in the actual results of these inputs that occur over time. Most plan participants can choose whether to receive their award in the form of stock options, stock units, or a combination of both. This choice is made before the grant is issued and is irrevocable. Pension and Other Postretirement Benefits. Liabilities and expenses for pension and other postretirement benefits are determined using actuarial methodologies and incorporate significant assumptions, including the interest rate used to discount the future estimated liability, the expected long-term rate of return on plan assets, and several assumptions relating to the employee workforce (salary increases, health care cost trend rates, retirement age, and mortality). The yield curve model used to develop the discount rate parallels the plans’ projected cash flows and has a weighted average duration of 11 years. The underlying cash flows of the high quality corporate bonds included in the model exceed the cash flows needed to satisfy the Company’s plan obligations multiple times. If a deep market of high quality corporate bonds does not exist in a country, then the yield on government bonds plus a corporate bond yield spread is used. The expected long-term rate of return on plan assets is generally applied to a five-year market-related value of plan assets (a four-year average or the fair value at the plan measurement date is used for certain non-U.S. plans). The process used by management to develop this assumption is one that relies on forward-looking investment returns by asset class. Management incorporates expected future investment returns on current and planned asset allocations using information from various external investment managers and consultants, as well as management’s own judgment. Mortality rate assumptions are based on mortality tables and future improvement scales published by third parties, such as the Society of Actuaries, and consider other available information including historical data as well as studies and publications from reputable sources. Derivatives and Hedging. Derivatives are held for purposes other than trading and are part of a formally documented risk management program. Alcoa accounts for hedges of firm customer commitments for aluminum as fair value hedges. The fair values of the derivatives and changes in the fair values of the underlying hedged items are reported as assets and liabilities in the Consolidated Balance Sheet. Changes in the fair values of these derivatives and underlying hedged items generally offset and are recorded each period in Sales, consistent with the underlying hedged item. The Company accounts for hedges of foreign currency exposures and certain forecasted transactions as cash flow hedges. The fair values of the derivatives are recorded as assets and liabilities in the Consolidated Balance Sheet. The changes in the fair values of these derivatives are recorded in Other comprehensive (loss) income and are reclassified to Sales, Cost of goods sold, or Other expenses, net in the period in which earnings are impacted by the hedged items or in the period that the transaction no longer qualifies as a cash flow hedge. These contracts cover the same periods as known or expected exposures, generally not exceeding five years. If no hedging relationship is designated, the derivative is marked to market through Other expenses, net. Cash flows from derivatives are recognized in the Statement of Consolidated Cash Flows in a manner consistent with the underlying transactions. Income Taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid and result from differences between the financial and tax bases of Alcoa’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management applies judgement in assessing all available positive and negative evidence and considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Alcoa’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitation has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. Foreign Currency. The local currency is the functional currency for Alcoa’s significant operations outside the United States, except for certain operations in Canada and Iceland, where the U.S. dollar is used as the functional currency. The determination of the functional currency for Alcoa’s operations is made based on the appropriate economic and management indicators. Where local currency is the functional currency, assets and liabilities are translated into U.S. dollars using year-end exchange rates and income and expenses are translated using the average exchange rates for the reporting period. Unrealized foreign currency translation gains and losses are deferred in Accumulated other comprehensive loss on the Consolidated Balance Sheet. Recently Adopted Accounting Guidance. On January 1, 2019, the Company 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’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 S for additional information related to the adoption of this standard. Alcoa’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 Leases: Land Easement Practical Expedient for Transition 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2018-07 Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting Recently Issued Accounting Guidance. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) which is intended to simply the accounting for income taxes by eliminating certain exceptions and simplifying certain requirements under Topic 740. Updates are related to intraperiod tax allocation, deferred tax liabilities for equity method investments, interim period tax calculations, tax laws or rate changes in interim periods, and income taxes related to employee stock ownership plans. The guidance for ASU No. 2019-12 becomes effective for Alcoa on January 1, 2021. Management is currently evaluating the impact of these changes on the Consolidated Financial Statements. In November 2019, the FASB issued ASU No. 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). In June 2018, the FASB issued ASU No. 2018-07, Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 effectively changed the accounting for nonemployee share-based payment transactions to be consistent with the accounting for employee share-based payments but did not provide guidance on measuring share-based payment awards granted to a customer. The amendments in ASU No. 2019-08 clarify that an entity must measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718. The Company adopted ASU No. 2018-07 effective January 1, 2019, and as such, ASU No. 2019-08 will be effective for the Company on January 1, 2020. The adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements as the Company does not utilize share-based payments for customers. In August 2018, the FASB issued separate guidance regarding the respective disclosure requirements associated with fair value measurements and defined benefit plans. This guidance makes changes to the disclosures of fair value measurements and defined benefit plans through several removals, modifications, additions, and/or clarifications of the existing requirements. The following are the changes that will have an immediate disclosure impact for Alcoa upon adoption of the guidance for fair value measurements: (i) disclosure of the valuation processes for Level 3 fair value measurements is no longer required, (ii) changes in unrealized gains and losses for the reporting period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period is a new disclosure requirement, and (iii) the range and weighted average (or other reasonable and rational method) of significant unobservable inputs used to develop Level 3 fair value measurements is a new disclosure requirement. The following are the changes that will have an immediate disclosure impact for the Company upon adoption of the guidance for defined benefit plans: (i) disclosure of the amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year is no longer required, (ii) disclosure of the effects of a one-percentage-point change in assumed health care cost trend rates on both the aggregate of the service and interest cost components of net periodic benefit costs and the benefit obligation for postretirement health care benefits is no longer required, and (iii) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the reporting period is a new disclosure requirement. The guidance for fair value measurements and defined benefit plans becomes effective for the Company on January 1, 2020 and December 31, 2020, respectively, with early adoption permitted. 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 the Company on January 1, 2020, with early adoption permitted. Management has completed our assessment of the impact related to this guidance and concluded that the adoption of this guidance will not have a material impact on the Company’s 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 the Company on January 1, 2020. Management has completed our assessment of the impact related to this guidance and concluded that the adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | C. Acquisitions and Divestitures Gum Springs Waste Treatment Business In January 2020, the Company announced the sale of Elemental Environmental Solutions LLC (EES), a wholly-owned Alcoa subsidiary that operates the waste processing facility in Gum Springs, Arkansas, to a global environmental firm in a transaction valued at $250. The transaction closed as of January 31, 2020 whereby the Company received $200 with another $50 held in escrow to be paid to Alcoa if certain post-closing conditions are satisfied. Afobaka Hydroelectric Dam On December 31, 2019, Alcoa completed the transfer of the Afobaka hydroelectric dam to the Government of the Republic of Suriname, according to definitive agreements approved by its parliament. After curtailment of Alcoa’s operations in Suriname in 2015 and permanent closure in early 2017, Alcoa continued to operate the dam, selling electricity to the government for its subsequent sale to customers in Suriname. At the time of the transfer, the fixed assets related to the dam were fully depreciated and all outstanding amounts due to Alcoa for electricity sales were settled. Avilés and La Coruña Aluminum Facilities In July 2019, Alcoa completed the divestiture of the Avilés and La Coruña (Spain) aluminum facilities to PARTER Capital Group AG (PARTER). Charges related to the curtailment, employee dismissal process, and divestiture totaled $253, which were recorded in Restructuring and other charges, net, Cost of goods sold, and Selling, general administrative, and other expenses as outlined below. Related to the divestiture, the Company recorded Restructuring and other charges, net, of $127 for the year ended December 31, 2019, resulting from financial contributions of up to $95 to PARTER per the agreement and a net charge of $32 to meet a working capital commitment and write-off the remaining net book value of the plants’ assets. For the year ended December 31, 2019, net cash outflows related to the close of the transaction were $47 with the remaining financial contributions of $68 to be paid in quarterly installments through the second quarter of 2021. These financial contributions after the closing date are classified as Cash used for financing activities on the Company’s Statement of Consolidated Cash Flows. The smelters at Avilés and La Coruña were curtailed in February 2019 and charges recorded prior to the completion of the divestiture included in the Statement of Consolidated Operations include: Restructuring and other charges, net for asset impairments ($80), severance and employee related costs ($20), and contract termination costs ($8); Cost of goods sold primarily for the write down of remaining inventories to their net realizable value ($16); and, Selling, general administrative, and other expenses for miscellaneous charges ($2). See Note D for additional detail. Ma’aden Rolling Company In December 2009, Alcoa 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, 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 the Ma’aden Rolling Company (MRC; the rolling mill). In June 2019, Alcoa 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, among other items, transferred Alcoa’s 25.1% interest in MRC to Ma’aden and, as a result, Alcoa has no further direct or indirect equity interest in MRC. Prior to the amendment, both partners contributed $100 to MRC to meet current cash requirements. As a result of the divestiture, Alcoa recorded Restructuring and other charges, net of $319 for the write-off of the investment in MRC ($161), the cash contributions described above ($100), the write-off of the Company’s share of MRC’s delinquent payables due to MAC ($59) that were forgiven as part of this transaction, partially offset by a gain resulting from the write-off of the fair value of debt guarantee ($1). See Note D for additional detail. Yadkin Hydroelectric Project In February 2017, Alcoa’s wholly-owned subsidiary, Alcoa Power Generating Inc., completed the sale of its 215-megawatt Yadkin Hydroelectric Project (Yadkin) to Cube Hydro Carolinas, LLC for $249 in cash ($8 of which was received in June and November 2017 combined as post-closing adjustments). In 2017, Alcoa Corporation recognized a gain of $122 (pre- and after-tax) in Other expenses, net on the accompanying Statement of Consolidated Operations. In accordance with the Separation and Distribution Agreement (see Note A), the Company remitted $243 of the proceeds to Arconic. The sale of Yadkin is subject to further post-closing adjustments related to potential earnouts through January 31, 2027, unless the provisions of the earnouts are met earlier. Any such adjustment would result in the Company receiving additional cash (none of which would be remitted to Arconic) and recognizing non-operating income. Yadkin encompasses four hydroelectric power developments (reservoirs, dams, and powerhouses), known as High Rock, Tuckertown, Narrows, and Falls, situated along a 38-mile stretch of the Yadkin River through the central part of North Carolina. Prior to the divestiture, the power generated by Yadkin was primarily sold into the open market. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Charges, Net | D. Restructuring and Other Charges, Net Restructuring and other charges, net for each year in the three-year period ended December 31, 2019 were comprised of the following: 2019 2018 2017 Loss on divestitures $ 446 $ — $ — Asset impairments 225 18 40 Settlements and/or curtailments related to retirement benefits (N) 119 331 8 Asset retirement obligations (Q) 75 5 10 Environmental remediation (R) 69 2 8 Severance and employee termination costs 51 2 15 Allowance on value-added tax credits (T) — 107 — Power contract payments – non-recurring — 62 244 Legal matter in Italy — — (22 ) Other 52 48 49 Reversals of previously recorded layoff and other costs (6 ) (48 ) (43 ) Restructuring and other charges, net $ 1,031 $ 527 $ 309 Severance and employee termination costs were recorded based on approved detailed action plans submitted by the operating locations that specified positions to be eliminated, benefits to be paid under existing severance plans, union contracts or statutory requirements, and the expected timetable for completion of the plans. 2019 Actions. In 2019, Alcoa Corporation recorded Restructuring and other charges, net, of $1,031 which were comprised of the following components: $319 related to the divestiture of Alcoa Corporation’s interest in the Ma’aden Rolling Company (see below); $274 for exits costs related to a decision to permanently close and demolish the Point Comfort alumina refinery (see below); $235 for costs related to the smelter curtailment and subsequent divestiture of the Avilés and La Coru ñ a aluminum facilities in Spain (see below); $119 related to the settlement and/or curtailment of certain pension and other postretirement benefits; $37 for employee termination and severance costs related to the implementation of the new operating model (see below); $9 for closure costs related to a coal mine; and $38 for net charges related to various other items. In December 2019, Alcoa Corporation announced the permanent closure of the Point Comfort (Texas) alumina refinery. Restructuring charges recorded in 2019 related to the closure included asset impairments of $129, asset retirement obligations of $72, environmental remediation costs of $69, and severance costs of $4 for the layoff of approximately 40 employees. Additionally, a charge of $2 for the write down of remaining inventories to their net realizable value was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. In September 2019, Alcoa Corporation announced the implementation of a new operating model that will result in a leaner, more integrated, operator-centric organization. Effective November 1, 2019, the new operating model eliminates the business unit structure, consolidates sales, procurement and other commercial capabilities at an enterprise level, and streamlines the Executive Team. The new structure will reduce overhead with the intention of promoting operational and commercial excellence and increasing connectivity between the Company’s plants and leadership. As a result of the new operating model, Alcoa Corporation recorded a charge of $37 related to employee termination and severance costs for approximately 260 employees company-wide. The restructuring actions and related cash outlays are anticipated to be substantially complete by the end of the first quarter 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, with a combined remaining operating capacity of 124 kmt, 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 to 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 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, which was subject to PARTER meeting certain financial conditions prior to July 31, 2019 to support the facilities 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 31, 2019, the Company would have proceeded with the collective dismissal and social plan as of August 1, 2019. As of July 31, 2019, PARTER met the financial conditions and the transaction closed. Restructuring and other charges, net, related to the curtailment and collective dismissal process of the Spanish facilities included asset impairments of $80, severance and employee-related costs of $20 and contract termination costs of $8. Additional charges included $16 recorded in Cost of goods sold, primarily for the write down of remaining inventories to their net realizable value, and $2 in miscellaneous charges recorded in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations. Restructuring and other charges, net, related to the divestiture of the Spanish facilities totaled $127 for the year ended December 31, 2019, for financial contributions of up to $95 to PARTER per the agreement, a net charge of $32 to meet a working capital commitment and write-off the remaining net book value of the plants’ assets. For the year ended December 31, 2019, net cash outflows related to the close of the transaction were $47 with the remaining financial contributions of $68 to be paid in quarterly installments through the second quarter of 2021. 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 as follows: 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. In June 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 R) 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 and as part of the agreement, Alcoa Corporation provided sales, logistics and customer technical services support for MRC products for the North American can sheet market through December 2019. 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 included 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 from the write-off of the fair value of debt guarantee. 2018 Actions. In 2018, Alcoa Corporation recorded Restructuring and other charges, net, of $527, which were comprised of the following components: $331 (net) related to settlements and curtailments of certain pension and other postretirement benefits (see Note N); $107 to establish an allowance on certain value-added tax credits related to the Company’s operations in Brazil (see Note T); $86 for costs related to the energy supply agreement at the curtailed Wenatchee (Washington) smelter, including $73 associated with 2018 management decision not to restart the fully curtailed Wenatchee smelter within the term provided in the energy supply agreement; a $15 net benefit for settlement of matters related to the Portovesme (Italy) smelter; and an $18 net charge for other items. In June 2018, management decided not to restart the fully curtailed Wenatchee smelter within the term provided in the related electricity supply agreement. Alcoa Corporation was therefore required to make a $62 payment to the energy supplier under the provisions of the agreement. Additionally, management decided to permanently close one (38 kmt) of the four potlines at this smelter. This potline has not operated since 2001 and the investments needed to restart this line were cost prohibitive. The remaining three curtailed potlines have a capacity of 146 kmt. In connection with these decisions, the Company recognized a charge of $73, composed of the $62 payment, $10 for asset impairments, and $1 for asset retirement obligations triggered by the decision to decommission the potline. 2017 Actions. In 2017, Alcoa Corporation recorded Restructuring and other charges, net, of $309, which were comprised of the following components: $244 related to the early termination of a power contract (see below); $49 for exit costs related to a decision to permanently close and demolish a smelter (see below); $41 for additional contract costs related to the curtailed Wenatchee and São Luís (Brazil) smelters; $22 for layoff costs, including the separation of approximately 130 employees (115 in the Aluminum segment), mostly for voluntary separation programs; a $22 reversal to reduce a reserve previously established at the end of 2015 related to a legal matter in Italy; an $18 net charge for other items, including the relocation of the Company’s headquarters and principal executive office from New York, New York to Pittsburgh, Pennsylvania; and a $43 reversal associated with several reserves related to prior periods (see below). In October 2017, Alcoa Corporation and Luminant Generation Company LLC (Luminant) executed an early termination agreement of a power contract, as well as other related fuel and lease agreements, effective October 1, 2017, related to the Company’s Rockdale (Texas) smelter, which has been fully curtailed since the end of 2008. In accordance with the terms of the early termination agreement, Alcoa made a cash payment of $238 and transferred approximately 2,200 acres of related land and other assets and liabilities to Luminant (net asset carrying value of $6). Since the curtailment of the Rockdale smelter, the Company had been selling surplus electricity into the energy market. In 2017 (through September 30), Alcoa Corporation recognized $105 in Sales and $148 in Cost of goods sold on the accompanying Statement of Consolidated Operations related to the sale of the surplus electricity and the cost of the Luminant power contract. In December 2017, management approved the permanent closure and demolition of the Rockdale smelter (capacity of 191 kmt-per-year) and related operations effective immediately. Demolition and remediation activities related to this action began in 2018 and are expected to be completed by the end of 2022. Separately, the Company continues to own more than 30,000 acres of land surrounding the Rockdale operations. In 2017, costs related to this decision included asset impairments of $32, representing the write-off of the remaining book value of all related properties, plants, and equipment; $1 for the layoff of approximately 10 employees (Corporate); and $16 in other costs. Additionally in 2017, remaining inventories, mostly operating supplies and raw materials, were written down to their net realizable value, resulting in a charge of $6, which was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. The other costs of $16 represent $8 in asset retirement obligations and $8 in environmental remediation, both of which were triggered by the decisions to permanently close and demolish the Rockdale facilities. In July 2017, Alcoa Corporation announced plans to restart three (capacity of 161 kmt-per-year) of the five potlines (capacity of 269 kmt-per-year) at the Warrick (Indiana) smelter. This smelter was previously permanently closed in March 2016 by ParentCo. As a result of the decision to reopen this smelter, in 2017, Alcoa Corporation reversed $33 in remaining liabilities related to the original closure decision. These liabilities consisted of $20 in asset retirement obligations and $4 in environmental remediation obligations, which were necessary due to the previous decision to demolish the smelter, and $9 in severance and contract termination costs. Additionally, the carrying value of the smelter and related assets was reduced to zero as the smelter ramped down between the permanent closure decision date (end of 2015) and the end of March 2016. The separations associated with 2017 restructuring programs were essentially completed during the 2018 fiscal year. In 2018 and 2017, cash payments of $3 and $9, respectively, were made against layoff reserves related to 2017 restructuring programs. 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: 2019 2018 2017 Bauxite $ 5 $ 1 $ 2 Alumina 272 112 3 Aluminum 611 102 51 Segment total 888 215 56 Corporate 143 312 253 Total Restructuring and other charges, net $ 1,031 $ 527 $ 309 Activity and reserve balances for restructuring charges were as follows: Severance and employee termination costs Other costs Total Balances at December 31, 2016 $ 38 $ 28 $ 66 Restructuring charges, net 15 50 65 Cash payments (30 ) (43 ) (73 ) Reversals and other (12 ) (1 ) (13 ) Balances at December 31, 2017 11 34 45 Restructuring charges, net 2 109 111 Cash payments (7 ) (95 ) (102 ) Reversals and other (1 ) (6 ) (7 ) Balances at December 31, 2018 5 42 47 Restructuring charges, net 51 161 212 Cash payments (19 ) (99 ) (118 ) Reversals and other (2 ) (2 ) (4 ) Balances at December 31, 2019 $ 35 $ 102 $ 137 The activity and reserve balances include only Restructuring charges, net that impact the reserves for Severance and employee termination costs and Other costs. Restructuring and other charges, net that affected other liability accounts such as environmental obligations (see Note R), asset retirement obligations (see Note Q), and pension and other postretirement reserves (see Note N) are excluded from the above activity and balances. Reversals and other include reversals of previously recorded liabilities and foreign currency translation impacts. The current portion of the reserve balance is reflected in Other current liabilities on the Consolidated Balance Sheet. The noncurrent portion of the reserve at December 31, 2019 was $13, of which $12 relates to financial contributions to PARTER |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Related Information | E. Segment and Related Information Segment Information Alcoa Corporation is a producer of bauxite, alumina, and aluminum products (primary and flat-rolled). The Company has three operating and reportable segments, which are organized by product on a global basis: Bauxite, Alumina, and Aluminum. Segment performance under Alcoa Corporation’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is the Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) of each segment. The Company calculates segment Adjusted EBITDA as Total sales (third-party and intersegment) minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; and Research and development expenses. Alcoa Corporation’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies. The chief operating decision maker function regularly reviews the financial information, including Sales and Adjusted EBITDA, of these three operating segments to assess performance and allocate resources. Segment assets include, among others, customer receivables (third-party and intersegment), inventories, properties, plants, and equipment, and equity investments. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note B). Transactions among segments are established based on negotiation among the parties. Differences between segment totals and Alcoa Corporation’s consolidated totals for line items not reconciled are in Corporate. The following are detailed descriptions of Alcoa Corporation’s reportable segments: Bauxite. This segment represents the Company’s global bauxite mining operations. A portion of this segment’s production represents the offtake from equity method investments in Brazil and Guinea, as well as AWAC’s share of bauxite production related to an equity investment in Saudi Arabia. The bauxite mined by this segment is sold primarily to internal customers within the Alumina segment; a portion of the bauxite is sold to external customers. Bauxite mined by this segment and used internally is transferred to the Alumina segment at negotiated terms that are intended to approximate market prices; sales to third-parties are conducted on a contract basis. Generally, this segment’s sales are transacted in U.S. dollars while costs and expenses are transacted in the local currency of the respective operations, which are the Australian dollar and the Brazilian real. Most of the operations that comprise the Bauxite segment are part of AWAC (see Principles of Consolidation in Note A). Alumina. This segment represents the Company’s worldwide refining system, which processes bauxite into alumina. The alumina produced by this segment is sold primarily to internal and external aluminum smelter customers; a portion of the alumina is sold to external customers who process it into industrial chemical products. Approximately two-thirds of Alumina’s production is sold under supply contracts to third parties worldwide, while the remainder is used internally by the Aluminum segment. Alumina produced by this segment and used internally is transferred to the Aluminum segment at prevailing market prices. A portion of this segment’s third-party sales are completed through the use of alumina traders. Generally, this segment’s sales are transacted in U.S. dollars while costs and expenses are transacted in the local currency of the respective operations, which are the Australian dollar, the Brazilian real, the U.S. dollar, and the euro. Most of the operations that comprise the Alumina segment are part of AWAC (see Principles of Consolidation in Note A). This segment also includes AWAC’s 25.1% ownership interest in a mining and refining joint venture company in Saudi Arabia (see Note H). Aluminum. This segment consists of the Company’s (i) worldwide smelting and casthouse system, which processes alumina into primary aluminum, (ii) portfolio of energy assets in Brazil, Canada, and the United States, and (iii) rolling mill in the United States. Aluminum’s combined smelting and casting operations produce primary aluminum products, virtually all of which are sold to external customers and traders; a portion of this primary aluminum is consumed by the rolling mill. The smelting operations produce molten primary aluminum, which is then formed by the casting operations into either common alloy ingot (e.g., t-bar, sow, standard ingot) or into value-add ingot products (e.g., foundry, billet, rod, and slab). A variety of external customers purchase the primary aluminum products for use in fabrication operations, which produce products primarily for the transportation, building and construction, packaging, wire, and other industrial markets. Results from the sale of aluminum powder and scrap are also included in this segment, as well as the impacts of embedded aluminum derivatives (see Note O) related to energy supply contracts. The energy assets supply power to external customers in Brazil and, to a lesser extent, in the United States, and internal customers in the Aluminum (Canadian smelters and Warrick (Indiana) smelter and rolling mill) and Alumina segments (Brazilian refineries). The rolling mill produces aluminum sheet primarily sold directly to customers in the packaging market for the production of aluminum cans (beverage and food). Additionally, from the Separation Date through the end of 2018, Alcoa Corporation had a tolling arrangement (contractually ended on December 31, 2018) with Arconic whereby Arconic’s rolling mill in Tennessee produced can sheet products for certain customers of the Company’s rolling operations. Alcoa Corporation supplied all of the raw materials to the Tennessee facility and paid Arconic for the tolling service. Generally, this segment’s aluminum sales are transacted in U.S. dollars while costs and expenses of this segment are transacted in the local currency of the respective operations, which are the U.S. dollar, the euro, the Norwegian krone, the Icelandic króna, the Canadian dollar, the Brazilian real, and the Australian dollar. This segment also includes Alcoa Corporation’s 25.1% ownership interest in both a smelting (full year) and rolling mill (through the second quarter of 2019) joint venture company in Saudi Arabia (see Note H). The operating results, capital expenditures, and assets of Alcoa Corporation’s reportable segments were as follows: Bauxite Alumina Aluminum Total 2019 Sales: Third-party sales $ 297 $ 3,250 $ 6,803 $ 10,350 Intersegment sales 979 1,561 17 2,557 Total sales $ 1,276 $ 4,811 $ 6,820 $ 12,907 Segment Adjusted EBITDA $ 504 $ 1,097 $ 25 $ 1,626 Supplemental information: Depreciation, depletion, and amortization $ 120 $ 214 $ 346 $ 680 Equity income (loss) — 6 (49 ) (43 ) 2018 Sales: Third-party sales $ 271 $ 4,215 $ 8,829 $ 13,315 Intersegment sales 944 2,101 18 3,063 Total sales $ 1,215 $ 6,316 $ 8,847 $ 16,378 Segment Adjusted EBITDA $ 426 $ 2,373 $ 451 $ 3,250 Supplemental information: Depreciation, depletion, and amortization $ 111 $ 197 $ 394 $ 702 Equity income (loss) — 32 (38 ) (6 ) 2017 Sales: Third-party sales $ 333 $ 3,133 $ 8,027 $ 11,493 Intersegment sales 875 1,723 21 2,619 Total sales $ 1,208 $ 4,856 $ 8,048 $ 14,112 Segment Adjusted EBITDA $ 424 $ 1,289 $ 1,026 $ 2,739 Supplemental information: Depreciation, depletion, and amortization $ 82 $ 207 $ 419 $ 708 Equity loss — (5 ) (19 ) (24 ) 2019 Assets: Capital expenditures $ 53 $ 137 $ 152 $ 342 Equity investments 212 293 587 1,092 Total assets 1,434 4,303 6,588 12,325 2018 Assets: Capital expenditures $ 47 $ 194 $ 125 $ 366 Equity investments 189 290 856 1,335 Total assets 1,448 4,643 7,715 13,806 The following tables reconcile certain segment information to consolidated totals: 2019 2018 2017 Sales: Total segment sales $ 12,907 $ 16,378 $ 14,112 Elimination of intersegment sales (2,557 ) (3,063 ) (2,619 ) Other 83 88 159 Consolidated sales $ 10,433 $ 13,403 $ 11,652 2019 2018 2017 Net (loss) income attributable to Alcoa Corporation: Total Segment Adjusted EBITDA (1) $ 1,626 $ 3,250 $ 2,739 Unallocated amounts: Transformation (2) (7 ) (3 ) (49 ) Intersegment eliminations (1),(3) 150 (8 ) (80 ) Corporate expenses (4) (101 ) (96 ) (131 ) Provision for depreciation, depletion, and amortization (713 ) (733 ) (750 ) Restructuring and other charges, net (D) (1,031 ) (527 ) (309 ) Interest expense (T) (121 ) (122 ) (104 ) Other expenses, net (T) (162 ) (64 ) (27 ) Other (5) (79 ) (72 ) (89 ) Consolidated (loss) income before income taxes (438 ) 1,625 1,200 Provision for income taxes (P) (415 ) (732 ) (592 ) Net income attributable to noncontrolling interest (272 ) (643 ) (329 ) Consolidated net (loss) income attributable to Alcoa Corporation $ (1,125 ) $ 250 $ 279 (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. See Note I. As a result, for the years ended December 31, 2018 and 2017, Total segment Adjusted EBITDA increased $47 and $14, respectively, and the Intersegment eliminations value above decreased $19 and increased $27, respectively. (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. December 31, 2019 2018 Assets: Total segment assets $ 12,325 $ 13,806 Elimination of intersegment receivables (170 ) (271 ) Unallocated amounts: Cash and cash equivalents 879 1,113 Corporate fixed assets, net 519 520 Corporate goodwill 145 146 Deferred income taxes 642 560 Other 291 258 Consolidated assets $ 14,631 $ 16,132 Product Information Alcoa Corporation has five product divisions as follows: Bauxite— Bauxite is a reddish clay rock that is mined from the surface of the earth’s terrain. This ore is the basic raw material used to produce alumina and is the primary source of aluminum. Alumina— Alumina is an oxide that is extracted from bauxite and is the basic raw material used to produce primary aluminum. This product can also be consumed for non-metallurgical purposes, such as industrial chemical products. Primary aluminum— Primary aluminum is metal in the form of a common alloy ingot (e.g., t-bar, sow, standard ingot) or a value-add ingot (e.g., billet, rod, and slab). These products are sold primarily to customers that produce products for the transportation, building and construction, packaging, wire, and other industrial markets. Flat-rolled aluminum— Flat-rolled aluminum is metal in the form of sheet, which is sold primarily to customers that produce beverage and food cans, including body, tab, and end stock. Energy— Energy is the generation of electricity, which is sold in the wholesale market to traders, large industrial consumers, distribution companies, and other generation companies. The following table represents the general commercial profile of the Company’s Bauxite, Alumina, Primary aluminum, and Flat-rolled aluminum product divisions (see text below table for Energy): Product division Pricing components Shipping terms (4) Payment terms (5) Bauxite Negotiated FOB/CIF LC Sight Alumina: Smelter-grade API (1) FOB LC Sight/CAD/Net 30 days Non-metallurgical Negotiated FOB/CIF Net 30 days Primary aluminum: Common alloy ingot LME + Regional premium (2) DAP/CIF Net 10 to 45 days Value-add ingot LME + Regional premium + Product premium (2) DAP/CIF Net 30 to 45 days Flat-rolled aluminum Metal + Conversion (3) DAP Negotiated ( 1) API (Alumina Price Index) is a pricing mechanism that is calculated by the Company based on the weighted average of a prior month’s daily spot prices published by the following three indices: CRU Metallurgical Grade Alumina Price; Platts Metals Daily Alumina PAX Price; and Metal Bulletin Non-Ferrous Metals Alumina Index (2) LME (London Metal Exchange) is a globally recognized exchange for commodity trading, including aluminum. The LME pricing component represents the underlying base metal component, based on quoted prices for aluminum on the exchange. The regional premium represents the incremental price over the base LME component that is associated with the physical delivery of metal to a particular region (e.g., the Midwest premium for metal sold in the United States). The product premium represents the incremental price for receiving physical metal in a particular shape (e.g., billet, rod, slab, etc.) or alloy (3) M etal represents the underlying base metal component plus a regional premium (see footnote 2). Conversion represents the incremental price over the metal price component that is associated with converting primary or scrap aluminum into sheet (4) CIF (cost, insurance, and freight) means that the Company pays for these items until the product reaches the buyer’s designated destination point related to transportation by vessel. DAP (delivered at place) means the same as CIF related to all methods of transportation. FOB (free on board) means that the Company pays for costs, insurance, and freight until the product reaches the seller’s designated shipping point. (5) The net number of days means that the customer is required to remit payment to the Company for the invoice amount within the designated number of days. LC Sight is a letter of credit that is payable immediately (usually within five to ten business days) after a seller meets the requirements of the letter of credit (i.e. shipping documents that evidence the seller performed its obligations as agreed to with a buyer). CAD (cash against documents) is a payment arrangement in which a seller instructs a bank to provide shipping and title documents to the buyer at the time the buyer pays in full the accompanying bill of exchange. For the Company’s Energy product division, sales of electricity are based on current market prices. Electricity is provided to customers on demand through a national or regional power grid; the customer simultaneously receives and consumes the electricity. Payment terms are generally within 10 days related to the previous 30 days of electricity consumption. The following table details Alcoa Corporation’s Third-party sales by product division: 2019 2018 2017 Sales: Primary aluminum $ 5,426 $ 6,787 $ 6,168 Alumina 3,246 4,209 3,121 Flat-rolled aluminum 1,220 1,884 1,666 Energy 290 335 446 Bauxite 276 254 333 Other (25 ) (66 ) (82 ) $ 10,433 $ 13,403 $ 11,652 Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum (see Note O). Geographic Area Information Geographic information for Third-party sales was as follows (based upon the country where the point of sale originated): 2019 2018 2017 Sales: United States (1) $ 4,606 $ 5,887 $ 5,313 Spain (2) 3,077 3,806 3,303 Australia 2,249 2,930 2,266 Brazil 428 498 569 Canada 5 216 150 Other 68 66 51 $ 10,433 $ 13,403 $ 11,652 (1) Sales of a portion of the alumina from refineries in Australia and Brazil and most of the aluminum from smelters in Canada occurred in the United States. (2) Sales of the aluminum produced from smelters in Iceland and Norway, as well as the off-take related to an interest in the Saudi Arabia joint venture (see Note H), occurred in Spain. Geographic information for long-lived assets was as follows (based upon the physical location of the assets): December 31, 2019 2018 Long-lived assets: Australia $ 2,044 $ 2,002 Brazil 1,596 1,729 United States 1,491 1,599 Iceland 1,160 1,216 Canada 1,047 1,064 Norway 365 381 Spain 209 321 Other 4 15 $ 7,916 $ 8,327 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | F. Earnings Per Share Basic earnings per share (EPS) amounts are computed by dividing Net (loss) income attributable to Alcoa Corporation 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 share information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (in millions): 2019 2018 2017 Average shares outstanding—basic 185 186 184 Effect of dilutive securities: Stock options — 1 1 Stock units — 2 2 Average shares outstanding—diluted 185 189 187 In 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. Had Alcoa generated net income in 2019, one million common share equivalents related to four million outstanding stock units and stock options combined would have been included in diluted average shares outstanding for the respective period. Options to purchase two million shares of common stock outstanding at December 31, 2019 had a weighted average exercise price of $32.66 per share which was greater than the average market price of Alcoa Corporation’s common stock. Options to purchase one million shares of common stock outstanding as of December 31, 2018 at a weighted average exercise price of $38.67 per share were not included in the computation of diluted EPS because the exercise prices of these options were greater than the average market price of Alcoa Corporation’s common stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | G. Accumulated Other Comprehensive Loss The following table details the activity of the three components that comprise Accumulated other comprehensive loss for both Alcoa Corporation’s shareholders and noncontrolling interest: Alcoa Corporation Noncontrolling interest 2019 2018 2017 2019 2018 2017 Pension and other postretirement benefits (N) Balance at beginning of period $ (2,283 ) $ (2,786 ) $ (2,330 ) $ (46 ) $ (47 ) $ (56 ) Other comprehensive (loss) income: Unrecognized net actuarial loss and prior service cost/benefit (309 ) 19 (671 ) (14 ) (3 ) 9 Tax benefit (expense) 28 (8 ) 25 — — (2 ) Total Other comprehensive (loss) income before reclassifications, net of tax (281 ) 11 (646 ) (14 ) (3 ) 7 Amortization of net actuarial loss and prior service cost/benefit (1) 299 546 199 5 4 2 Tax expense (2) (17 ) (54 ) (9 ) (1 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 282 492 190 4 4 2 Total Other comprehensive (loss) income 1 503 (456 ) (10 ) 1 9 Balance at end of period $ (2,282 ) $ (2,283 ) $ (2,786 ) $ (56 ) $ (46 ) $ (47 ) Foreign currency translation Balance at beginning of period $ (2,071 ) $ (1,467 ) $ (1,655 ) $ (810 ) $ (581 ) $ (677 ) Other comprehensive (loss) income (3) (89 ) (604 ) 188 (24 ) (229 ) 96 Balance at end of period $ (2,160 ) $ (2,071 ) $ (1,467 ) $ (834 ) $ (810 ) $ (581 ) Cash flow hedges (O) Balance at beginning of period $ (211 ) $ (929 ) $ 210 $ 31 $ 51 $ 1 Other comprehensive (loss) income: Net change from periodic revaluations (437 ) 803 (1,489 ) 20 (4 ) 83 Tax benefit (expense) 83 (159 ) 251 (6 ) 1 (25 ) Total Other comprehensive (loss) income before reclassifications, net of tax (354 ) 644 (1,238 ) 14 (3 ) 58 Net amount reclassified to earnings: Aluminum contracts (4) 44 108 130 — — — Financial contracts (5) (43 ) (37 ) (19 ) (35 ) (24 ) (12 ) Foreign exchange contracts (4) 18 6 (2 ) — — — Interest rate contract (6) 4 — — — — — Sub-total 23 77 109 (35 ) (24 ) (12 ) Tax benefit (expense) (2) 10 (3 ) (10 ) 10 7 4 Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 33 74 99 (25 ) (17 ) (8 ) Total Other comprehensive (loss) income (321 ) 718 (1,139 ) (11 ) (20 ) 50 Balance at end of period $ (532 ) $ (211 ) $ (929 ) $ 20 $ 31 $ 51 Total Accumulated other comprehensive loss $ (4,974 ) $ (4,565 ) $ (5,182 ) $ (870 ) $ (825 ) $ (577 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits. For 2019, the amounts for Alcoa Corporation include $116, and for Noncontrolling interest include $3 related to settlements and/or curtailments of certain pension and other postretirement benefits. For 2018, the amounts for Alcoa Corporation include $330, (net) and for Noncontrolling interest include $1 related to settlements and/or curtailments of certain pension and other postretirement benefits (see Note N). (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) These amounts were included in Other expenses, net on the accompanying Statement of Consolidated Operations. (7) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments | H. Investments December 31, 2019 2018 Equity investments $ 1,103 $ 1,350 Other investments 10 10 $ 1,113 $ 1,360 Equity Investments. The following table summarizes information of Alcoa Corporation’s equity investments as of December 31, 2019 and 2018. In 2019, 2018, and 2017, Alcoa Corporation received $39, $45, and $71, respectively, in dividends from these equity investments. The Company divested its interest in the Ma’aden Rolling Company in June 2019 (see below). Each of the investees either owns the facility listed or has an ownership interest in an entity that owns the facility listed: Investee Country Nature of investment Ownership interest Ma’aden Aluminum Company Saudi Arabia Aluminum smelter and casthouse 25.1% Ma’aden Bauxite and Alumina Company Saudi Arabia Bauxite mine and alumina refinery 25.1% Halco Mining, Inc. Guinea Bauxite mine 45% Energética Barra Grande S.A. Brazil Hydroelectric generation facility 42.18% Pechiney Reynolds Quebec, Inc. Canada Aluminum smelter 50% Consorcio Serra do Facão Brazil Hydroelectric generation facility 34.97% Mineração Rio do Norte S.A. Brazil Bauxite mine 18.2% Manicouagan Power Limited Partnership Canada Hydroelectric generation facility 40% Elysis TM Canada Aluminum smelting technology 48.235% Saudi Arabia Joint Venture— Alcoa Corporation and Ma’aden have a 30-year (from December 2009) joint venture shareholders agreement (automatic extension for an additional 20 years, unless the parties agree otherwise or unless earlier terminated) setting forth the terms for the development, construction, ownership, and operation of an integrated aluminum complex in Saudi Arabia. The project developed by the joint venture consists of a bauxite mine from the Al Ba’itha bauxite deposit in the northern part of Saudi Arabia, an alumina refinery, a primary aluminum smelter, and an aluminum rolling mill. The joint venture is owned 74.9% by Ma’aden and 25.1% by Alcoa Corporation and originally consisted of three separate companies as follows: the bauxite mine and alumina refinery (MBAC), the smelter (MAC), and the rolling mill (MRC). In June 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 agreement, 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. Refer to Note D for additional information related to the agreement amendment. A number of Alcoa Corporation employees perform various types of services for the smelting, rolling mill, and mining and refining companies as part of the operation of the fully-integrated aluminum complex. At December 31, 2019 and 2018, the Company had an aggregate outstanding receivable of $8 and $11, respectively, from the smelting, rolling mill, and mining and refining companies for labor and other employee-related expenses. As of December 31, 2019 and 2018, the carrying value of Alcoa’s investment in this joint venture was $603 and $874, respectively. Elysis TM In June 2018, Alcoa Corporation, Rio Tinto plc, and the provincial government of Québec, Canada launched a new joint venture, Elysis TM Limited Partnership (Elysis TM ). The purpose of this partnership is to advance larger scale development and commercialization of its patent-protected technology that produces oxygen and eliminates all direct greenhouse gas emissions from the traditional aluminum smelting process. Alcoa and Rio Tinto plc, as general partners, each own a 48.235% stake in Elysis TM , and the Québec provincial government, as a limited partner, owns a 3.53% stake. The federal government of Canada and Apple Inc., as well as the Québec provincial government, will provide initial financing to the partnership. The total planned combined investment (equity and debt) of the five participants in the joint venture is $144 (C$188). Alcoa and Rio Tinto plc will invest a combined $42 (C$55) in the joint venture, as well as contribute and license certain intellectual property and patents to Elysis TM . To date, the Company has contributed $5 (C$6) toward its initial investment commitment in Elysis TM . In addition to cash contributions, Alcoa is contributing $3 in research and development expenses annually. The Company’s basis in the investment has been reduced to zero for its share of losses incurred to date. As a result, the Company has $17 in unrecognized losses as of December 31, 2019 that will be recognized upon additional contributions into the partnership. The following table summarizes the profit and loss data for the respective periods ended December 31, as it relates to Alcoa Corporation’s equity investments. For 2019, the information shown for the Saudi Arabia Joint Venture includes the full period for both MAC and MBAC, and the data for MRC through the divestiture date. The investments are grouped based on the nature of the investment. The M ining investments are part of the Bauxite segment, while the E nergy and O ther investments are parimarily part of the Aluminum segment. Saudi Arabia Joint Venture Mining Energy Other 2019 Sales $ 3,185 $ 846 $ 269 $ 159 Cost of goods sold 2,722 580 143 151 Net (loss) income (198 ) 35 107 (28 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (50 ) 16 42 (13 ) Other 3 5 1 16 Alcoa Corporation’s equity in net (loss) income of affiliated companies (47 ) 21 43 3 2018 Sales $ 3,986 $ 802 $ 283 $ 120 Cost of goods sold 3,334 522 146 110 Net income 9 71 114 16 Equity in net income of affiliated companies, before reconciling adjustments 2 23 46 8 Other (13 ) (10 ) (4 ) (1 ) Alcoa Corporation’s equity in net (loss) income of affiliated companies (11 ) 13 42 7 2017 Sales $ 3,032 $ 766 $ 339 $ 332 Cost of goods sold 2,776 539 174 292 Net (loss) income (157 ) 77 139 23 Equity in net (loss) income of affiliated companies, before reconciling adjustments (39 ) 27 53 11 Other 9 (1 ) 2 — Alcoa Corporation’s equity in net (loss) income of affiliated companies (30 ) 26 55 11 The following table summarizes the balance sheet data for Alcoa Corporation’s equity investments. The information shown for the Saudi Arabia Joint Venture for 2019 only includes the combined balances for MAC and MBAC. Saudi Arabia Joint Venture Mining Energy Other 2019 Current assets $ 1,109 $ 191 $ 106 $ 181 Noncurrent assets 7,931 923 509 761 Current liabilities 677 156 41 59 Noncurrent liabilities 5,587 511 87 42 2018 Current assets $ 1,684 $ 185 $ 84 $ 139 Noncurrent assets 9,115 817 542 97 Current liabilities 1,379 126 36 49 Noncurrent liabilities 6,101 439 101 4 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | I. Inventories December 31, 2019 2018 Finished goods $ 305 $ 346 Work-in-process 282 189 Bauxite and alumina 446 609 Purchased raw materials 453 529 Operating supplies 158 146 $ 1,644 $ 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 (deficit) earnings of $143 and an unfavorable adjustment to Noncontrolling interest of $22 as of January 1, 2017. 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 years ended December 31, 2018 and 2017 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 year ended December 31, 2018: Cost of goods sold $ 10,081 $ (28 ) $ 10,053 Provision for income taxes 726 6 732 Net income 871 22 893 Net income attributable to noncontrolling interest 644 (1 ) 643 Net income attributable to Alcoa Corporation 227 23 250 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 1.22 $ 0.12 $ 1.34 Diluted 1.20 0.13 1.33 Statement of Consolidated Comprehensive Income for the year ended December 31, 2018: Comprehensive income $ 1,240 $ 22 $ 1,262 Comprehensive income attributable to noncontrolling interest 396 (1 ) 395 Comprehensive income attributable to Alcoa Corporation 844 23 867 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 year ended December 31, 2018: Net income $ 871 $ 22 $ 893 Deferred income taxes (36 ) 6 (30 ) (Increase) in inventories (278 ) (28 ) (306 ) Statement of Consolidated Operations for the year ended December 31, 2017: Cost of goods sold $ 8,991 $ (41 ) $ 8,950 Provision for income taxes 600 (8 ) 592 Net income 559 49 608 Net income attributable to noncontrolling interest 342 (13 ) 329 Net income attributable to Alcoa Corporation 217 62 279 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 1.18 $ 0.33 $ 1.51 Diluted 1.16 0.33 1.49 Statement of Consolidated Comprehensive Income for the year ended December 31, 2017: Comprehensive loss $ (693 ) $ 49 $ (644 ) Comprehensive income attributable to noncontrolling interest 497 (13 ) 484 Comprehensive loss attributable to Alcoa Corporation (1,190 ) 62 (1,128 ) Statement of Consolidated Cash Flows for the year ended December 31, 2017: Net income $ 559 $ 49 $ 608 Deferred income taxes 176 (8 ) 168 (Increase) in inventories (238 ) (41 ) (279 ) 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 December 31, 2019 and for the year then ended: As Computed under LIFO As Reported under Average Cost Effect of Change Statement of Consolidated Operations for the year ended December 31, 2019: Cost of goods sold $ 8,528 $ 8,537 $ 9 Provision for income taxes 400 415 15 Net loss (829 ) (853 ) (24 ) Net income attributable to noncontrolling interest 246 272 26 Net loss attributable to Alcoa Corporation (1,075 ) (1,125 ) (50 ) Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ (5.80 ) $ (6.07 ) $ (0.27 ) Diluted (5.80 ) (6.07 ) (0.27 ) Statement of Consolidated Comprehensive Income for the year ended December 31, 2019: Comprehensive loss $ (1,283 ) $ (1,307 ) $ (24 ) Comprehensive income attributable to noncontrolling interest 201 227 26 Comprehensive loss attributable to Alcoa Corporation (1,484 ) (1,534 ) (50 ) Consolidated Balance Sheet as of December 31, 2019: Inventories $ 1,478 $ 1,644 $ 166 Prepaid expenses and other current assets 284 288 4 Retained deficit (734 ) (555 ) 179 Noncontrolling interest 1,783 1,774 (9 ) Statement of Consolidated Cash Flows for the year ended December 31, 2019: Net loss $ (829 ) $ (853 ) $ (24 ) Deferred income taxes — 15 15 Decrease in inventories 128 137 9 |
Properties, Plants, and Equipme
Properties, Plants, and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Properties, Plants, and Equipment, Net | J. Properties, Plants, and Equipment, Net December 31, 2019 2018 Land and land rights, including mines $ 333 $ 328 Structures (by type of operation): Bauxite mining 1,138 1,119 Alumina refining 2,415 2,478 Aluminum smelting and casting 3,457 3,532 Energy generation 440 506 Aluminum rolling 290 285 Other 386 380 8,126 8,300 Machinery and equipment (by type of operation): Bauxite mining 499 480 Alumina refining 3,956 3,604 Aluminum smelting and casting 6,251 6,489 Energy generation 879 889 Aluminum rolling 1,057 1,029 Other 293 282 12,935 12,773 21,394 21,401 Less: accumulated depreciation, depletion, and amortization 13,799 13,480 7,595 7,921 Construction work-in-progress 321 406 $ 7,916 $ 8,327 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | K. Goodwill and Other Intangible Assets Goodwill, which is included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, was as follows: December 31, 2019 2018 Bauxite $ 2 $ 2 Alumina 3 3 Aluminum — — Corporate (1) 145 146 $ 150 $ 151 (1) The carrying value of Corporate’s goodwill is net of accumulated impairment losses of $742 as of both December 31, 2019 and 2018. As of December 31, 2019, the $145 of goodwill reflected in Corporate is allocated to two of Alcoa Corporation’s three reportable segments ($48 to Bauxite and $97 to Alumina) for purposes of impairment testing (see Note B). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the two reportable segments. Management performed a quantitative assessment of the Alumina reporting unit in 2019. The estimated fair value of the Alumina reporting unit was substantially in excess of its carrying value, resulting in no impairment. Management performed a qualitative assessment of the Bauxite reporting unit in 2019 and determined that it was not more likely that not that the fair value of the reporting unit was less that its carrying value. Management last performed a quantitative impairment test for the Bauxite reporting unit in 2018. At that time, the estimated fair value of the Bauxite reporting unit was substantially in excess of its carrying value, resulting in no impairment. Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows: 2019 2018 December 31, Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Computer software $ 240 $ (216 ) $ 24 $ 237 $ (211 ) $ 26 Patents and licenses 25 (8 ) 17 25 (7 ) 18 Other intangibles 22 (11 ) 11 19 (6 ) 13 Total other intangible assets $ 287 $ (235 ) $ 52 $ 281 $ (224 ) $ 57 Computer software consists primarily of software costs associated with the enterprise business solution within Alcoa to drive common systems among all businesses. Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2019, 2018, and 2017 was $19, $12, and $12, respectively, and is expected to be approximately $10 annually from 2020 to 2024. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | L. Debt Long-Term Debt. December 31, 2019 2018 6.75% Notes, due 2024 $ 750 $ 750 7.00% Notes, due 2026 500 500 6.125% Notes, due 2028 500 500 Other 84 91 Unamortized discounts and deferred financing costs (34 ) (39 ) Total 1,800 1,802 Less: amount due within one year 1 1 Long-term debt, less amount due within one year $ 1,799 $ 1,801 The principal amount of long-term debt maturing in each of the next five years is $1 in 2020, $79 in 2021, and $1 in each of 2022, and 2023, and $751 in 2024. 144A Debt . In May 2018, Alcoa Nederland Holding B.V. (ANHBV), a wholly-owned subsidiary of Alcoa Corporation, completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for $500 of 6.125% Senior Notes due 2028 (the “2028 Notes”). ANHBV received $492 in net proceeds from the debt offering reflecting a discount to the initial purchasers of the 2028 Notes. The net proceeds, along with available cash on hand, were used to make discretionary contributions to certain U.S. defined benefit pension plans (see Note N). The discount to the initial purchasers, as well as costs to complete the financing, was deferred and is being amortized to interest expense over the term of the 2028 Notes. Interest on the 2028 Notes is paid semi-annually in November and May, which commenced November 15, 2018. ANHBV has the option to redeem the 2028 Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the 2028 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after May 2023 at a redemption price specified in the indenture (up to 103.063% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2028 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2028 Notes repurchased, plus any accrued and unpaid interest on the 2028 Notes repurchased. The 2028 Notes indenture includes several customary affirmative covenants. Additionally, the 2028 Notes indenture contains several negative covenants, that, subject to certain exceptions, include limitations on liens, limitations on sale and leaseback transactions, and a prohibition on a reduction in the ownership of AWAC entities below an agreed level. The negative covenants in the 2028 Notes indenture are less extensive than those in the 2024 Notes and 2026 Notes (see below) indenture and the Second Amended Revolving Credit Agreement. For example, the 2028 Notes indenture does not include a limitation on restricted payments, such as repurchases of common stock and shareholder dividends. The 2028 Notes rank equally in right of payment with all of ANHBV’s existing and future senior indebtedness, including the 2024 Notes and 2026 Notes; rank senior in right of payment to any future subordinated obligations of ANHBV; and are effectively subordinated to ANHBV’s existing and future secured indebtedness, including under the Second Amended Revolving Credit Agreement, to the extent of the value of property and assets securing such indebtedness. In September 2016, ANHBV completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for $750 of 6.75% Senior Notes due 2024 (the “2024 Notes”) and $500 of 7.00% Senior Notes due 2026 (the “2026 Notes” and, collectively with the 2024 Notes, the “Notes”). ANHBV received $1,228 in net proceeds from the debt offering reflecting a discount to the initial purchasers of the Notes. The net proceeds were used to make a payment to ParentCo to fund the transfer of certain assets from ParentCo to Alcoa Corporation in connection with the Separation Transaction, and the remaining net proceeds were used for general corporate purposes. The discount to the initial purchasers, as well as costs to complete the financing, was deferred and is being amortized to interest expense over the respective terms of the Notes. Interest on the Notes is paid semi-annually in March and September, which commenced March 31, 2017. ANBHV has the option to redeem the Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after September 2019, in the case of the 2024 Notes, or after September 2021, in the case of the 2026 Notes, at a redemption price specified in the indenture (up to 105.063% of the principal amount for the 2024 Notes and up to 103.500% of the principal amount of the 2026 Notes, plus any accrued and unpaid interest in each case). Also, the Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased, plus any accrued and unpaid interest on the Notes repurchased. The Notes and the 2028 Notes are senior unsecured obligations of ANHBV and do not entitle the holders to any registration rights pursuant to a registration rights agreement. ANHBV does not intend to file a registration statement with respect to resales of or an exchange offer for the Notes or 2028 Notes. The Notes and 2028 Notes are guaranteed on a senior unsecured basis by Alcoa Corporation and its subsidiaries that are guarantors under the Second Amended Revolving Credit Agreement (the “subsidiary guarantors” and, together with Alcoa Corporation, the “guarantors”) (see Credit Facility below). Each of the subsidiary guarantors will be released from their guarantees upon the occurrence of certain events, including the release of such guarantor from its obligations as a guarantor under the Second Amended Revolving Credit Agreement. The Notes indenture contains various restrictive covenants similar to those described below for the Second Amended Revolving Credit Agreement, including a limitation on restricted payments, with, among other exceptions, capacity to pay annual ordinary dividends. Under the indenture, Alcoa Corporation may declare and make annual ordinary dividends in an aggregate amount not to exceed $38 in each of the November 1, 2016 through December 31, 2017 time period and annual 2018 (no such dividends were made), $50 in each of annual 2019 and 2020 (no such dividends were made in 2019), and $75 in the January 1, 2021 through September 30, 2026 (maturity date of the 2026 Notes) time period, except that 50% of any unused amount of the base amount in any of the specified time periods may be used in the next succeeding period following the use of the base amount in said time period. Additionally, the restricted payments negative covenant includes a general exception to allow for potential future transactions incremental to those specifically provided for in the Notes indenture. This general exception provides for an aggregate amount of restricted payments not to exceed the greater of $250 and 1.5% of Alcoa Corporation’s consolidated total assets. Accordingly, Alcoa Corporation may make annual ordinary dividends in any fiscal year by an aggregate amount of up to $250, assuming no other restricted payments have reduced, in part or whole, the available limit. The limits of the restricted payments negative covenant under the Second Amended Revolving Credit Agreement (see Credit Facility below) would govern the amount of ordinary dividend payments Alcoa Corporation could make in a given timeframe if the allowed amount is less than the limits of the restricted payments negative covenant under the Notes indenture. Credit Facilities. On October 2, 2019, Alcoa Norway ANS, a wholly-owned subsidiary of Alcoa Corporation, entered into a one-year, multicurrency revolving credit facility agreement for NOK 1.3 billion (approximately $147) which is fully and unconditionally guaranteed on an unsecured basis by Alcoa Corporation. The revolving credit facility is scheduled to mature on October 2, 2020, unless extended or terminated early in accordance with the provisions of the agreement. Alcoa Norway ANS will pay a quarterly commitment fee of 0.465% on the unused portion of the revolving credit facility, starting on January 2, 2020. The interest rate on outstanding NOK loan balances is 1.55% per annum plus the Norwegian Interbank Offered Rate (NIBOR); the interest rate on outstanding US dollar loans is 1.65% per annum plus LIBOR. At December 31, 2019, there were no amounts drawn or outstanding related to this credit facility. On October 25, 2019, a wholly-owned subsidiary of the Company entered into a $120 three-year revolving credit facility agreement secured by certain customer receivables. Alcoa Corporation guarantees the performance obligations of the wholly-owned subsidiaries under the facility, however no assets (other than the receivables) are pledged as collateral. Fees paid upon closure of the agreement were approximately $1, fees associated with the unused portion of the facility range from 25 to 35 basis points of the unused commitment on a 360 day base year, and fees applied to any used portions of the facility are 85 basis points of the used commitment on a 360 day base year. At December 31, 2019, there were no amounts drawn or outstanding related to this credit facility. On November 21, 2018, Alcoa Corporation and ANHBV entered into a Second Amendment and Restatement Agreement to the Revolving Credit Agreement dated September 16, 2016 and the Amendment and Restatement Agreement dated November 14, 2017 (the Revolving Credit Agreement as revised by the Amendment and Restatement Agreement, the “Amended Revolving Credit Agreement”), in each case, with a syndicate of lenders and issuers named therein to revise certain terms and provisions of the Amended Revolving Credit Agreement (the Amended Revolving Credit Agreement as revised by the Second Amendment and Restatement Agreement, the “Second Amended Revolving Credit Agreement”). Unless noted otherwise, the terms and provisions described below for the Second Amended Revolving Credit Agreement were applicable to the Amended Revolving Credit Agreement from November 14, 2017 to November 20, 2018. The Second Amended Revolving Credit Agreement provides a $1,500 senior secured revolving credit facility (the “Revolving Credit Facility”) to be used for working capital and/or other general corporate purposes of Alcoa Corporation and its subsidiaries. Subject to the terms and conditions of the Second Amended Revolving Credit Agreement, ANHBV may from time to time request the issuance of letters of credit up to $750 under the Revolving Credit Facility, subject to a sublimit of $400 for any letters of credit issued for the account of Alcoa Corporation or any of its domestic subsidiaries. Additionally, ANHBV may from time to time request that each of the lenders provide one or more additional tranches of term loans and/or increase the aggregate amount of revolving commitments, together in an aggregate principal amount of up to $500. The Revolving Credit Facility is scheduled to mature on November 21, 2023, unless extended or earlier terminated in accordance with the provisions of the Second Amended Revolving Credit Agreement. ANHBV may make extension requests during the term of the Revolving Credit Facility, subject to the lender consent requirements set forth in the Second Amended Revolving Credit Agreement. Under the provisions of the Second Amended Revolving Credit Agreement, ANHBV will pay a quarterly commitment fee ranging from 0.200% to 0.425% (previously 0.225% to 0.450%) (based on Alcoa Corporation’s leverage ratio) on the unused portion of the Revolving Credit Facility. A maximum of $750 in outstanding borrowings under the Revolving Credit Facility may be denominated in euros. Loans will bear interest at a rate per annum equal to an applicable margin plus, at ANHBV’s option, either (a) an adjusted LIBOR rate or (b) a base rate determined by reference to the highest of (1) the U.S. prime rate as published in the Wall Street Journal (previously the prime rate of JPMorgan Chase Bank, N.A.), (2) the greater of the federal funds effective rate and the overnight bank funding rate, plus 0.5%, and (3) the one month adjusted LIBOR rate plus 1% per annum. The applicable margin for all loans will vary based on Alcoa Corporation’s leverage ratio and will range from 1.50% to 2.25% (previously 1.75% to 2.50%) for LIBOR loans and 0.50% to 1.25% (previously 0.75% to 1.50%) for base rate loans, subject in each case to a reduction of 25 basis points if Alcoa Corporation attains at least a Baa3 rating from either Moody’s Investor Service or BBB- rating from Standard and Poor’s Global Ratings. Outstanding borrowings may be prepaid without premium or penalty, subject to customary breakage costs. All obligations of Alcoa Corporation or a domestic entity under the Revolving Credit Facility are secured by, subject to certain exceptions (including a limitation of pledges of equity interests in certain foreign subsidiaries to 65%, and certain thresholds with respect to real property), a first priority lien on substantially all assets of Alcoa Corporation and the material domestic wholly-owned subsidiaries of Alcoa Corporation and certain equity interests of specified non-U.S. subsidiaries. All other obligations under the Revolving Credit Facility are secured by, subject to certain exceptions (including certain thresholds with respect to real property), a first priority security interest in substantially all assets of Alcoa Corporation, ANHBV, the material domestic wholly-owned subsidiaries of Alcoa Corporation, and the material foreign wholly-owned subsidiaries of Alcoa Corporation located in Australia, Brazil, Canada, Luxembourg, the Netherlands, Norway, and Switzerland, including equity interests of certain subsidiaries that directly hold equity interests in AWAC entities. However, no AWAC entity is a guarantor of any obligation under the Revolving Credit Facility and no asset of any AWAC entity, or equity interests in any AWAC entity, will be pledged to secure the obligations under the Revolving Credit Facility. Under the Second Amended Revolving Credit Agreement, each of the mentioned companies shall be released from all obligations under the first priority lien and/or first priority security interest upon (i) Alcoa Corporation attaining at least a Baa3 rating from either Moody’s Investor Service or BBB- rating from Standard and Poor’s Global Ratings, in each case with a stable outlook or better, (ii) ANHBV delivering the required written notice, and (iii) no default or event of default, as defined in the Second Amended Revolving Credit Agreement, has occurred or is continuing (the date on which such conditions are met, the “Collateral Release Date”). The Second Amended Revolving Credit Agreement includes a number of customary affirmative covenants. Additionally, the Second Amended Revolving Credit Agreement contains a number of negative covenants (applicable to Alcoa Corporation and certain subsidiaries described as restricted), that, subject to certain exceptions, include limitations on (among other things): liens; fundamental changes; sales of assets; indebtedness (see below); entering into restrictive agreements; restricted payments (see below), including repurchases of common stock and shareholder dividends (see below); investments (see below), loans, advances, guarantees, and acquisitions; transactions with affiliates; amendment of certain material documents; and a covenant prohibiting reductions in the ownership of AWAC entities, and certain other specified restricted subsidiaries of Alcoa Corporation, below an agreed level. The Second Amended Revolving Credit Agreement also includes financial covenants requiring the maintenance of a specified interest expense coverage ratio of not less than 5.00 to 1.00, and a leverage ratio for any period of four consecutive fiscal quarters that is not greater than 2.50 to 1.00 (2.00 to 1.00 beginning on and subsequent to the Collateral Release Date, may be increased to a level not higher than 2.25 to 1.00 under certain circumstances). As of December 31, 2019, maximum additional borrowing capacity to remain in compliance with these covenants was $1,200. As of December 31, 2019 and 2018, Alcoa Corporation was in compliance with all such covenants. The indebtedness, restricted payments, and investments negative covenants include general exceptions to allow for potential future transactions incremental to those specifically provided for in the Second Amended Revolving Credit Agreement. The indebtedness negative covenant provides for an incremental amount not to exceed the greater of $1,000 and 6.0% of Alcoa Corporation’s consolidated total assets. Additionally, the restricted payments negative covenant provides for an aggregate amount not to exceed $100 and the investments negative covenant provides for an aggregate amount not to exceed $400, both of which contain two conditions in which these limits may increase. First, in any fiscal year, the thresholds for the restricted payments and investments negative covenants increase by $250 and $200, respectively, if the consolidated net leverage ratio is not greater than 1.50 (previously 1.20) to 1.00 and 1.50 (previously1.30) to 1.00, respectively, as of the end of the prior fiscal year. Secondly, in regards to both the $100 and $250 for restricted payments and the $200 for investments, 50% of any unused amount of these base amounts in any fiscal year may be used in the next succeeding fiscal year. The following describes the specific restricted payment negative covenant for share repurchases and the application of the restricted payments general exception (described above) to both share repurchases and ordinary dividend payments. Alcoa Corporation may repurchase shares of its common stock pursuant to stock option exercises and benefit plans in an aggregate amount not to exceed $25 during any fiscal year, except that 50% of any unused amount of the base amount in any fiscal year may be used in the next succeeding fiscal year following the use of the base amount in said fiscal year. Additionally, as described above, the Second Amended Revolving Credit Agreement provides general exceptions to the restricted payments negative covenant that would allow Alcoa Corporation to execute share repurchases for any purpose in any fiscal year by an aggregate amount of up to $100 (see above for conditions that provide for this limit to increase), assuming no other restricted payments have reduced, in part or whole, the available limit. Also, any ordinary dividend payments made by Alcoa Corporation are only subject to the general exception for restricted payments described above. Accordingly, Alcoa Corporation may make annual ordinary dividends in any fiscal year by an aggregate amount of up to $100 (see above for conditions that provide for this limit to increase), assuming no other restricted payments have reduced, in part or whole, the available limit. The limits of the restricted payments negative covenant under the Notes indenture (see 144A Debt above) would govern the amount of ordinary dividend payments Alcoa Corporation could make in a given timeframe if the allowed amount is less than the limits of the restricted payments negative covenant under the Second Amended Revolving Credit Agreement. The Second Amended Revolving Credit Agreement contains customary events of default, including with respect to a failure to make payments under the Revolving Credit Facility, cross-default and cross-judgment default, and certain bankruptcy and insolvency events. There were no borrowings outstanding at December 31, 2019 and 2018 and no amounts were borrowed during 2019 and 2018 under the Revolving Credit Facility. |
Preferred and Common Stock
Preferred and Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Preferred and Common Stock | M. Preferred and Common Stock Preferred Stock. Alcoa Corporation is authorized to issue 100,000,000 shares of preferred stock at a par value of $0.01 per share. At December 31, 2019 and 2018, the Company had no issued preferred stock. Common Stock. Alcoa Corporation is authorized to issue 750,000,000 shares of common stock at a par value of $0.01 per share. As of December 31, 2019, and 2018, Alcoa Corporation had 185,580,166 and 184,770,249, respectively, issued and outstanding shares of common stock. Under its employee stock-based compensation plan, the Company issued shares of 809,917 in 2019, 1,293,336 in 2018, and 2,269,718 in 2017. Also, 25,167,229 shares of common stock were available for issuance as of December 31, 2019, under Alcoa Corporation’s employee stock-based compensation plan. The Company issues new shares to satisfy the exercise of stock options and the conversion of stock units. In October 2018, Alcoa Corporation’s Board of Directors authorized a common stock repurchase program under which the Company may purchase shares of its outstanding common stock up to an aggregate transactional value of $200, depending on cash availability, market conditions, and other factors. Repurchases under the program may be made using a variety of methods, which may include open market purchases, privately negotiated transactions, or pursuant to a Rule 10b5-1 plan. This program does not have a predetermined expiration date. Alcoa Corporation intends to retire the repurchased shares of common stock. In December 2018, the Company repurchased 1,723,800 shares of its common stock for $50; these shares were immediately retired. No shares were repurchased in 2019. Dividends on common stock are subject to authorization by Alcoa Corporation’s Board of Directors. The Company did not declare any dividends in 2019, 2018, and 2017. Stock-based Compensation Stock options and stock units are generally granted in either January or February each calendar year to eligible employees (the Company’s Board of Directors also receive certain stock units; however, these amounts are not material). Stock options are granted at the closing market price of Alcoa Corporation’s common stock on the date of grant and grade vest over a three-year 1/3 ten-year The final number of market-based and performance-based stock units earned is dependent on Alcoa Corporation’s achievement of certain targets over a three-year measurement period for grants. For market-based stock units, the award will be earned at the end of the measurement period based on the Company’s total shareholder return measured against the total shareholder return of the Standard & Poor’s 500® Index from January 1 of the grant year through December 31 of the third year in the service period. For performance-based stock units, the award will be earned at the end of the measurement period based on the Company’s performance against a pre-established return-on-capital target measured from January 1 of the grant year through December 31 of the third year in the service period. In 2019, 2018, and 2017, Alcoa Corporation recognized stock-based compensation expense of $30, $35, and $24, respectively, of which approximately 80% to 90% was related to stock units in each period. There was no stock-based compensation expense capitalized in 2019, 2018, or 2017. Stock-based compensation expense is based on the grant date fair value of the applicable equity grant. For both stock units with no performance or market condition and stock units with a performance condition, the fair value was equivalent to the closing market price of Alcoa Corporation’s common stock on the date of grant in the respective periods. For stock units with a market condition, the fair value was estimated on the date of grant using a Monte Carlo simulation model, which generated a result of $35.70 and $73.13 per unit in 2019 and 2018, respectively. The Monte Carlo simulation model uses certain assumptions to estimate the fair value of a market-based stock unit, including volatility (42.04% for the Company and 12.64% for the Standard & Poor’s 500® Index) and a risk-free interest rate (2.57%) (the assumptions used to estimate the fair value of stock units granted in 2018 were not materially different). For stock options, the fair value was estimated on the date of grant using a lattice-pricing model, which generated a result of $10.86, $21.32, and $12.45 per option in 2019, 2018, and 2017, respectively. The lattice-pricing model uses several assumptions to estimate the fair value of a stock option, including an average risk-free interest rate, dividend yield, volatility, annual forfeiture rate, exercise behavior, and contractual life. Assumptions used by the Company to estimate the fair value of stock options granted in 2019 are as follows: • Risk free rate: 2.77% based on a yield curve of interest rates at the time of the grant over the life of the option • Dividend yield: 0% based on historical dividends paid from the Separation Date and that the Company did not have any immediate plans to pay dividends • Volatility: 41.74% based on historical and implied volatilities over the term of the option • Pre- and post-vesting forfeitures: 4 % based on historical option forfeiture data • Exercise behavior: 61% based on a weighted average exercise ratio Based upon the assumptions used in the determination of the fair value, the lattice-pricing model resulted in an option life of 5.9 years. The assumptions and option life output for 2019 were not materially different from 2018 and 2017. The activity for stock options and stock units during 2019 was as follows: Stock options Stock units Number of options Weighted average exercise price Number of units Weighted average FMV per unit Outstanding, January 1, 2019 1,959,927 $ 28.41 2,305,145 $ 32.75 Granted 519,900 28.01 1,145,099 27.87 Exercised (96,712 ) 18.05 — — Converted — — (924,826 ) 15.22 Expired or forfeited (136,552 ) 34.81 (216,309 ) 35.68 Performance share adjustment — — (181,498 ) 39.62 Outstanding, December 31, 2019 2,246,563 28.38 2,127,611 36.85 The number of Converted units includes 209,550 shares “withheld” to meet the Company’s statutory tax withholding requirements related to the income earned by the employees as a result of vesting in the units. As of December 31, 2019, the 2,246,563 outstanding stock options had a weighted average remaining contractual life of 5.40 years and a total intrinsic value of $3. Additionally, 1,559,040 of the total outstanding stock options were fully vested and exercisable and had a weighted average remaining contractual life of 3.98 years, a weighted average exercise price of $26.19, and a total intrinsic value of $3 as of December 31, 2019. Cash received from stock option exercises was $2, $23, and $43 in 2019, 2018, and 2017, respectively, and the total intrinsic value of stock options exercised during 2019, 2018, and 2017 was $1, $26, and $24, respectively. At December 31, 2019, there was $29 (pretax) of combined unrecognized compensation expense related to non-vested grants of both stock options and stock units. This expense is expected to be recognized over a weighted average period of 1.60 years. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | N. Pension and Other Postretirement Benefits Defined Benefit Plans Alcoa sponsors several defined benefit pension plans covering certain employees in the U.S. and foreign locations. Pension benefits generally depend on length of service, job grade, and remuneration. Substantially all benefits are paid through pension trusts that are sufficiently funded to ensure that all plans can pay benefits to retirees as they become due. Most salaried and non-bargaining hourly U.S. employees hired after March 1, 2006 participate in a defined contribution plan instead of a defined benefit plan. The Company also maintains health care and life insurance postretirement benefit plans covering certain eligible U.S. retired employees and certain retirees from foreign locations. Generally, the medical plans are unfunded and pay a percentage of medical expenses, reduced by deductibles and other coverage. Life benefits are generally provided by insurance contracts. The Company retains the right, subject to existing agreements, to change or eliminate these benefits. All salaried and certain non-bargaining hourly U.S. employees hired after January 1, 2002 and certain bargaining hourly U.S. employees hired after July 1, 2010 are not eligible for postretirement health care benefits. All salaried and certain hourly U.S. employees that retire on or after April 1, 2008 are not eligible for postretirement life insurance benefits. As of January 1, 2019, the pension benefit plans and the other postretirement benefit plans cover an aggregate of approximately 40,000 and approximately 39,000 participants, respectively. 2019 Plan Actions. In 2019, management initiated the following actions to certain pension and other postretirement benefit plans: Action #1 – In June 2019, the Company entered into a new, six-year target benefit plan, where the funding risk is assumed by the employees. The Company will contribute approximately 12 % of these participants’ eligible earnings to the new plan on an annual basis. The Company will also contribute additional contributions of approximately $ 2 spread 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. Action #2 – In July 2019, the Company entered into a new, six-year five-year Action #3 – In October 2019, the Company offered lump sum buyouts to specific participants in its U.S. defined benefit pension plans. As a result, the Company paid approximately $112 from plan assets on November 30, 2019 to about 1,700 participants and was relieved of the corresponding pension obligation of $138. Action #4 – In December 2019, the Company notified certain U.S. retirees that they will be transitioned to a Medicare Exchange plan with a Company-provided contribution, effective January 1, 2021. This change affects approximately 6,000 participants. The change will improve cost predictability and allow participants to elect coverage from a choice of available options. Action #5 – In December 2019, the Company notified certain U.S. retirees that life insurance will no longer be provided, effective December 31, 2019. This change affects approximately 8,900 participants. As part of this change, Alcoa made a one-time transition payment to the affected retirees totaling $14 in December 2019. The following table presents certain information and the financial impacts of these actions on the accompanying Consolidated Financial Statements: Action # 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 (decrease) to accrued pension benefits liability (1) Decrease to accrued other postretirement benefits liability Curtailment charge (2) Settlement charge (2) 1 ~700 3.85% May 31, 2019 3.15% $ 52 $ — $ 38 $ — 2 ~900 3.80% June 30, 2019 3.00% 23 — — — 3 ~1,700 N/A December 31, 2019 N/A (26 ) — — 66 4 ~6,000 N/A December 31, 2019 N/A — (108 ) — — 5 ~8,900 N/A December 31, 2019 N/A — (56 ) — 8 ~18,200 $ 49 $ (164 ) $ 38 $ 74 (1) Actions 1 and 2 caused interim plan remeasurements, including an update to the discount rates used to determine the benefit obligations of the affected plans. These amounts include the impacts due to the interim plan remeasurements. (2) These amounts represent the accelerated amortization of a portion of the existing prior service cost for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (See Note D) on the accompanying Statement of Consolidated Operations. 2018 Plan Actions. In 2018, management initiated the following actions to certain pension and other postretirement benefit plans: Action #1— In January 2018, Alcoa notified all U.S. and Canadian salaried employees, who are participants in three of the Company’s defined benefit pension plans, that they will cease accruing retirement benefits for future service, effective January 1, 2021. This change will affect approximately 800 employees, who will be transitioned to country-specific defined contribution plans, in which Alcoa will contribute 3% of these participants’ eligible earnings on an annual basis. Such contributions will be incremental to any employer savings match the employees may receive under existing defined contribution plans. Participants already collecting benefits under these defined benefit pension plans are not affected by these changes. Action #2— In January 2018, the Company notified U.S. salaried employees and retirees that it will no longer contribute to pre-Medicare retiree medical coverage, effective January 1, 2021. This change affects approximately 700 participants in one plan. Action #3— In April 2018, the Company signed group annuity contracts to transfer the obligation to pay the remaining retirement benefits of approximately 2,100 retirees from two Canadian defined benefit pension plans to three insurance companies. The transfer of $560 in both plan obligations and plan assets, as well as a transaction fee of $23, was completed on April 13, 2018. The Company contributed $89 between the two plans to facilitate the transaction and maintain the funding level of the remaining plan obligations. Prior to these transactions, these two Canadian pension plans combined had approximately 3,500 participants. Action #4— In August 2018, the Company signed a group annuity contract to transfer the obligation to pay the remaining retirement benefits of approximately 10,500 retirees from three U.S. defined benefit pension plans to one insurance company. The transfer of $287 in both plan obligations and plan assets, as well as a transaction fee of $10, was completed on August 7, 2018. Additionally, approximately 1,000 plan participants elected to receive lump sum settlements, representing $75 in plan obligations and $85 in plan assets. Prior to these two transactions, these three U.S. pension plans combined had approximately 43,400 participants. Action #5— In August 2018, the Company notified certain U.S. salaried retirees that life insurance will no longer be provided, effective September 1, 2018. This change affects approximately 5,500 participants in one plan. As part of this change, Alcoa made a one-time transition payment to the affected retirees totaling $23 in September 2018. The above actions caused the respective plans to be remeasured, including an update to the discount rates used to determine the benefit obligations of the affected plans. The following table presents certain information and the financial impacts of these actions on the accompanying Consolidated Financial Statements: Action # Number of affected plan participants Weighted average discount rate as of December 31, 2017 Plan remeasurement date Weighted average discount rate as of plan remeasurement date (Decrease) increase to accrued pension benefits liability Decrease to accrued other postretirement benefits liability Curtailment charge (gain) (1) Settlement charge (1) 1 ~800 3.65% January 31, 2018 3.80% $ (57 ) $ — $ 5 $ — 2 ~700 3.29% January 31, 2018 3.43% — (7 ) (28 ) — 3 ~2,100 3.43% March 31, 2018 3.60% 24 — — 167 4 ~11,500 3.70% July 31, 2018 4.39% (110 ) — — 230 5 ~5,500 3.61% July 31, 2018 4.35% — (86 ) — (56 ) ~20,600 $ (143 ) $ (93 ) $ (23 ) $ 341 (1) These amounts represent the accelerated amortization of a portion of the existing prior service cost or benefit for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges. Net (see Note D) on the accompanying Statement of Consolidated Operations. Obligations and Funded Status Pension benefits Other postretirement benefits December 31, 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 5,997 $ 7,639 $ 973 $ 1,218 Service cost 49 60 4 5 Interest cost 226 232 36 34 Amendments 26 — (150 ) (5 ) Actuarial losses (gains) 746 (346 ) 103 (88 ) Settlements (177 ) (1,009 ) (14 ) (57 ) Curtailments — (22 ) — — Benefits paid, net of participants’ contributions (379 ) (407 ) (111 ) (140 ) Medicare Part D subsidy receipts — — 7 7 Foreign currency translation impact 44 (150 ) — (1 ) Benefit obligation at end of year $ 6,532 $ 5,997 $ 848 $ 973 Change in plan assets Fair value of plan assets at beginning of year $ 4,610 $ 5,322 $ — $ — Actual return on plan assets 763 (129 ) — — Employer contributions 175 996 — — Participant contributions 11 12 — — Benefits paid (379 ) (403 ) — — Administrative expenses (19 ) (31 ) — — Settlements (177 ) (1,030 ) — — Foreign currency translation impact 31 (127 ) — — Fair value of plan assets at end of year $ 5,015 $ 4,610 $ — $ — Funded status $ (1,517 ) $ (1,387 ) $ (848 ) $ (973 ) Less: Amounts attributed to joint venture partners (34 ) (33 ) — — Net funded status $ (1,483 ) $ (1,354 ) $ (848 ) $ (973 ) Amounts recognized in the Consolidated Balance Sheet consist of: Noncurrent assets $ 33 $ 63 $ — $ — Current liabilities (11 ) (10 ) (99 ) (105 ) Noncurrent liabilities (1,505 ) (1,407 ) (749 ) (868 ) Net amount recognized $ (1,483 ) $ (1,354 ) $ (848 ) $ (973 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss $ 3,364 $ 3,261 $ 261 $ 176 Prior service cost (benefit) 5 21 (154 ) (4 ) Total, before tax effect 3,369 3,282 107 172 Less: Amounts attributed to joint venture partners 42 40 — — Net amount recognized, before tax effect $ 3,327 $ 3,242 $ 107 $ 172 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) consist of: Net actuarial loss (benefit) $ 350 $ 132 $ 103 $ (88 ) Amortization of accumulated net actuarial loss (247 ) (614 ) (18 ) (17 ) Prior service cost (benefit) 26 (1 ) (150 ) (62 ) Amortization of prior service (cost) benefit (42 ) (13 ) — 88 Total, before tax effect 87 (496 ) (65 ) (79 ) Less: Amounts attributed to joint venture partners 2 (5 ) — — Net amount recognized, before tax effect $ 85 $ (491 ) $ (65 ) $ (79 ) At December 31, 2019, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $4,532, $3,429, and $(1,103), respectively. At December 31, 2018, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $4,246, $3,160, and $(1,086), respectively. Pension Plan Benefit Obligations Pension benefits 2019 2018 The aggregate projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows: Projected benefit obligation $ 6,532 $ 5,997 Accumulated benefit obligation 6,324 5,792 The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets was as follows: Projected benefit obligation 6,014 5,502 Fair value of plan assets 4,463 4,051 The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets was as follows: Accumulated benefit obligation 5,873 5,380 Fair value of plan assets 4,463 4,051 Components of Net Periodic Benefit Cost Pension benefits (1) Other postretirement benefits (2) 2019 2018 2017 2019 2018 2017 Service cost $ 48 $ 54 $ 71 $ 4 $ 5 $ 5 Interest cost (3) 221 227 244 36 34 38 Expected return on plan assets (3) (325 ) (341 ) (398 ) — — — Recognized net actuarial loss (3) 171 198 185 10 13 13 Amortization of prior service cost (benefit) (3) 4 8 9 — — (6 ) Settlements (4) 73 410 5 8 (56 ) — Curtailments (5) 38 5 — — (28 ) — Special termination benefits (6) — — 3 — — — Net periodic benefit cost (7) $ 230 $ 561 $ 119 $ 58 $ (32 ) $ 50 (1) In 2019, 2018, and 2017, net periodic benefit cost for U.S pension plans was $155, $358, and $74, respectively. (2) In 2019, 2018, and 2017, net periodic benefit cost for other postretirement benefits reflects a reduction of $7, $8 and $8, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D. (3) These amounts were reported in Other expenses, net on the accompanying Statement of Consolidated Operations. (4) These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations (see Note D). In 2019, settlements were due to management actions (see Plan Actions above) ($74) and payment of additional lump sum benefits ($7). In 2018, settlements were due to management actions (see Plan Actions above) ($341) and payment of lump sum benefits ($13). In 2017, settlements were due to payment of lump sum benefits. (5) These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations (see Note D). In 2019 and 2018, curtailments were due to management actions (see Plan Actions above). (6) These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations (see Note D). In 2017, special termination benefits were due to workforce reductions. (7) Amounts attributed to joint venture partners are not included. Amounts Expected to be Recognized in Net Periodic Benefit Cost Pension benefits Other postretirement benefits 2020 2020 Net actuarial loss recognition $ 202 $ 17 Prior service cost recognition 1 (14 ) Assumptions. Weighted average assumptions used to determine benefit obligations for pension and other postretirement benefit plans were as follows: December 31, 2019 2018 Discount rate—pension plans 3.12 % 4.21 % Discount rate—other postretirement benefit plans 3.12 4.25 Rate of compensation increase—pension plans 3.25 3.26 The yield curve model used to develop the discount rate parallels the plans’ projected cash flows and has a weighted average duration of 11 years. The underlying cash flows of the high quality corporate bonds included in the model exceed the cash flows needed to satisfy the Company’s plan obligations multiple times. If a deep market of high quality corporate bonds does not exist in a country, then the yield on government bonds plus a corporate bond yield spread is used. The rate of compensation increase is based upon actual experience. For 2020, the rate of compensation increase will be 3.25%, which approximates the five-year Weighted average assumptions used to determine net periodic benefit cost for pension and other postretirement benefit plans were as follows: 2019 2018 2017 Discount rate—pension plans 3.89 % 3.59 % 3.61 % Discount rate—other postretirement benefit plans 3.94 3.18 3.30 Expected long-term rate of return on plan assets—pension plans 6.59 6.89 7.47 Rate of compensation increase—pension plans 3.26 3.28 3.61 For 2019, 2018, and 2017, the expected long-term rate of return used by management was based on the prevailing and planned strategic asset allocations, as well as estimates of future returns by asset class. For 2020, management anticipates that 6.28% will be the weighted-average expected long-term rate of return. In October 2019, the Society of Actuaries (SOA) issued updated base mortality tables (Pri-2012) and their annual update to the mortality improvement scale (MP-2019). These were both considered in developing the Company’s updated mortality assumptions for U.S. pension and postretirement benefit obligations recorded at December 31, 2019, in connection with an experience study performed approximately every five years. The study resulted in the use of Pri-2012 base tables with an adjustment to reflect Alcoa’s experience and a modified version of the MP-2019 improvement scales. Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (non-U.S. plans are not material): 2019 2018 2017 Health care cost trend rate assumed for next year 5.5 % 5.5 % 5.5 % Rate to which the cost trend rate gradually declines 4.5 % 4.5 % 4.5 % Year that the rate reaches the rate at which it is assumed to remain 2023 2022 2021 The assumed health care cost trend rate is used to measure the expected cost of gross eligible charges covered by the Company’s other postretirement benefit plans. For 2020, a 5.5% trend rate will be used, reflecting management’s best estimate of the change in future health care costs covered by the plans. The Company’s postretirement benefit plan costs are largely not subject to medical inflation due to the implementation of pre- and post-65 fixed Company-provided contributions for a large portion of the eligible population. In 2015, Medicare eligible U.S. retirees, who were primarily non-bargained, were moved to a Medicare Marketplace with a fixed Company-provided contribution. Similarly, effective January 1, 2021, Alcoa will no longer offer a Company-sponsored postretirement health care plan to certain U.S. bargained Medicare-eligible retirees. Qualifying retirees, both current and future, will be transitioned to a Medicare Marketplace with a fixed Company-provided contribution. As a result of these actions, the effect of a one percentage point change in the assumed health care cost trend rate would not be significant to the Company. Plan Assets. Alcoa’s pension plan investment policy and weighted average asset allocations at December 31, 2019 and 2018, by asset class, were as follows: Plan assets at December 31, Asset class Policy range 2019 2018 Equities 10–60% 40 % 36 % Fixed income 10–65% 49 51 Other investments 0–35% 11 13 Total 100 % 100 % The principal objectives underlying the investment of the pension plan assets are to ensure that the Company can properly fund benefit obligations as they become due under a broad range of potential economic and financial scenarios, maximize the long-term investment return with an acceptable level of risk based on such obligations, and broadly diversify investments across and within various asset classes to protect asset values against adverse movements. Investment risk is controlled by rebalancing to target allocations on a periodic basis and ongoing monitoring of investment manager performance. The portfolio includes an allocation to investments in long-duration government debt, long-duration corporate credit, real estate, high yield bonds, emerging market debt, global-listed infrastructure and public and private market equities. The target asset allocation is approximately 30% in equities, approximately 50% in fixed income, and approximately 20% in other investments. Investment practices comply with the requirements of applicable laws and regulations in the respective jurisdictions, including the Employee Retirement Income Security Act of 1974 (ERISA) in the United States. The following section describes the valuation methodologies used by the trustees to measure the fair value of pension plan assets. For plan assets measured at net asset value, this refers to the net asset value of the investment on a per share basis (or its equivalent) as a practical expedient. Otherwise, an indication of the level in the fair value hierarchy in which each type of asset is generally classified is provided (see Note O for the definition of fair value and a description of the fair value hierarchy). Equities— These securities consist of: (i) direct investments in the stock of publicly traded U.S. and non-U.S. companies and are valued based on the closing price reported in an active market on which the individual securities are traded (generally classified in Level 1); (ii) the plans’ share of commingled funds that are invested in the stock of publicly traded companies and are valued at net asset value; and (iii) direct investments in long/short equity hedge funds and private equity (limited partnerships and venture capital partnerships) and are valued at net asset value. Fixed income— These securities consist of: (i) U.S. government debt and are generally valued using quoted prices (included in Level 1); (ii) cash and cash equivalents invested in publicly-traded funds and are valued based on the closing price reported in an active market on which the individual securities are traded (generally classified in Level 1); (iii) publicly traded U.S. and non-U.S. fixed interest obligations (principally corporate bonds and debentures) and are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data (included in Level 2); and (iv) cash and cash equivalents invested in institutional funds and are valued at net asset value. Other investments— These investments include, among others: (i) real estate investment trusts valued based on the closing price reported in an active market on which the investments are traded (included in Level 1); (ii) the plans’ share of commingled funds that are invested in real estate partnerships and are valued at net asset value; (iii) direct investments in private real estate (includes limited partnerships) and are valued at net asset value; and (iv) absolute return strategy funds and are valued at net asset value. The fair value methods described above may not be indicative of net realizable value or reflective of future fair values. Additionally, while Alcoa believes the valuation methods used by the plans’ trustees are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table presents the fair value of pension plan assets classified under either the appropriate level of the fair value hierarchy or net asset value: December 31, 2019 Level 1 Level 2 Net Asset Value Total Equities: Equity securities $ 612 $ — $ 1,213 $ 1,825 Long/short equity hedge funds — — 8 8 Private equity — — 177 177 $ 612 $ — $ 1,398 $ 2,010 Fixed income: Intermediate and long duration government/credit $ 889 $ 700 $ 560 $ 2,149 Cash and cash equivalent funds 23 — 293 316 Other — 5 — 5 $ 912 $ 705 $ 853 $ 2,470 Other investments: Real estate $ 208 $ — $ 287 $ 495 Other — — 32 32 $ 208 $ — $ 319 $ 527 Total (1) $ 1,732 $ 705 $ 2,570 $ 5,007 December 31, 2018 Level 1 Level 2 Net Asset Value Total Equities: Equity securities $ 662 $ — $ 813 $ 1,475 Long/short equity hedge funds — — 6 6 Private equity — — 186 186 $ 662 $ — $ 1,005 $ 1,667 Fixed income: Intermediate and long duration government/credit $ 925 $ 697 $ 327 $ 1,949 Cash and cash equivalent funds 56 — 325 381 Other — 14 — 14 $ 981 $ 711 $ 652 $ 2,344 Other investments: Real estate $ 230 $ — $ 318 $ 548 Other — — 32 32 $ 230 $ — $ 350 $ 580 Total (2) $ 1,873 $ 711 $ 2,007 $ 4,591 (1) As of December 31, 2019, the total fair value of pension plan assets excludes a net receivable of $8, which represents securities not yet settled plus interest and dividends earned on various investments. (2) As of December 31, 2018, the total fair value of pension plan assets excludes a net receivable of $19, which represents securities not yet settled plus interest and dividends earned on various investments. Funding and Cash Flows. It is Alcoa’s policy to fund amounts for defined benefit pension plans sufficient to meet the minimum requirements set forth in applicable country benefits laws and tax laws, including ERISA for U.S. plans. From time to time, the Company contributes additional amounts as deemed appropriate. In 2019, 2018, and 2017, cash contributions to Alcoa’s defined benefit pension plans were $173, $992, and $106. Contributions made in 2018 include a combined $725 of unscheduled contributions to several defined benefit pension plans, including a combined $620 to three of the Company’s U.S. defined benefit pension plans and a combined $105 to two of the Company’s Canadian defined benefit pension plans (inclusive of $89 for Action# 3 in Plan Actions above). The additional payments to the U.S. plans were discretionary in nature and were funded with $492 in net proceeds from a May 2018 debt issuance (see Note L) and $128 of available cash on hand. The primary purpose for issuing debt to fund a portion of the discretionary contributions to the U.S. plans was to reduce near-term pension funding risk with a fixed rate, 10-year maturity instrument. Alcoa’s minimum required contribution to defined benefit pension plans in 2020 is estimated to be $295, of which $250 is for U.S. plans. Under ERISA regulations, a plan sponsor that establishes a pre-funding balance by making discretionary contributions to a U.S. defined benefit pension plan may elect to apply all or a portion of this balance toward its minimum required contribution obligations to the related plan in future years. In 20 20 , management will consider making such election related to the Company’s U.S. plans. Benefit payments expected to be paid to pension and other postretirement benefit plan participants and expected Medicare Part D subsidy receipts are as follows: Year ended December 31, Pension benefits Gross Other postretirement benefits Medicare Part D subsidy receipts Net Other postretirement benefits 2020 $ 435 $ 105 $ 5 $ 100 2021 435 95 5 90 2022 430 90 5 85 2023 430 90 5 85 2024 425 70 5 65 2025 through 2029 2,020 255 15 240 $ 4,175 $ 705 $ 40 $ 665 Defined Contribution Plans The Company sponsors savings and investment plans in several countries, primarily in Australia and the United States. In the United States, employees may contribute a portion of their compensation to the plans, and Alcoa matches a specified percentage of these contributions in equivalent form of the investments elected by the employee. Also, the Company makes contributions to a retirement savings account based on a percentage of eligible compensation for certain U.S. employees hired after March 1, 2006 that are not able to participate in Alcoa’s defined benefit pension plans. The Company’s expenses related to all defined contribution plans were $68 in 2019, $69 in 2018, and $65 in 2017. Member-funded Pension Plan Effective July 22, 2019, the Company contributes to a member-funded pension plan sponsored by the United Steelworkers for the employees of Aluminerie de Bécancour Inc. in Canada (see Plan Actions above). Alcoa makes contributions to the plan based on a percentage of the employees’ eligible compensation. The Company’s expenses related to the member-funded pension plan were $4 in 2019. |
Derivatives and Other Financial
Derivatives and Other Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Derivatives and Other Financial Instruments | O. 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, foreign currency exchange rates and interest rates. Alcoa Corporation’s commodity and derivative activities include aluminum, energy, foreign exchange and interest rate 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. Alcoa Corporation’s commodity and derivative activities are subject to the management, direction, and control of the Strategic Risk Management Committee (SRMC), which consists of at least three members, including the chief executive officer and the chief financial officer. The remaining member(s) are other officers and/or employees of the Company as the chief executive officer may designate from time to time. Currently, the only other member of the SRMC is Alcoa Corporation’s treasurer. The SRMC meets on a periodic basis to review derivative positions and strategy and reports to the Audit Committee of Alcoa Corporation’s Board of Directors on the scope of its activities. Several of Alcoa Corporation’s aluminum, energy, and foreign exchange contracts are classified as Level 1 or Level 2 under the fair value hierarchy. All of these contracts are designated as either fair value or cash flow hedging instruments. Alcoa Corporation also has several derivative instruments classified as Level 3 under the fair value hierarchy, which are either designated as cash flow hedges or undesignated. The following tables present the detail for Level 1, 2 and 3 derivatives (see additional Level 3 information in further tables below): 2019 2018 Balance at December 31, Assets Liabilities Assets Liabilities Level 1 and 2 derivative instruments $ 3 $ 33 $ 2 $ 54 Level 3 derivative instruments 74 615 153 289 Total $ 77 $ 648 $ 155 $ 343 Less: Current 59 67 73 82 Noncurrent $ 18 $ 581 $ 82 $ 261 Unrealized loss recognized in Other comprehensive (loss) income Realized gain (loss) reclassed from Other comprehensive (loss) income to earnings Year ended December 31, 2019 2018 2019 2018 Level 1 and 2 derivative instruments $ (14 ) $ 24 $ (26 ) $ (14 ) Level 3 derivative instruments (385 ) 774 42 (38 ) Noncontrolling and equity interest (38 ) 5 (38 ) (25 ) Total $ (437 ) $ 803 $ (22 ) $ (77 ) The 2019 realized loss of $26 on Level 1 and 2 cash flow hedges was comprised of an $18 loss recognized in Sales and a $8 loss recognized in Cost of goods sold. The 2018 realized loss of $14 on Level 1 and 2 cash flow hedges was recognized in Sales. During 2017, Alcoa recognized a realized loss of $15 on Level 1 and 2 cash flow hedges in Sales. In addition, Alcoa recognized a realized loss of $82 on Level 3 cash flow hedges comprised of a loss of $113 recognized in Sales and a gain of $31 recognized in Cost of goods sold. Alcoa also recognized a loss of $24 in Other expenses, net, related to mark-to-market derivative instruments of which a loss of $27 related to Level 1 and 2 instruments, a loss of $17 related to Level 3 power contracts, a gain of $3 related to the Level 3 embedded credit derivative, and a gain of $17 related to the Level 3 financial contract. Derivative instruments classified as Level 3 in the fair value hierarchy represent those in which management has used at least one significant unobservable input in the valuation model. Alcoa Corporation uses a discounted cash flow model to fair value all Level 3 derivative instruments. These valuation models are reviewed and tested at least on an annual basis. Inputs in the valuation models for Level 3 derivative instruments are composed of the following: (i) quoted market prices (e.g., aluminum prices on the 10-year London Metal Exchange (LME) forward curve and energy prices), (ii) significant other observable inputs (e.g., information concerning time premiums and volatilities for certain option type embedded derivatives and regional premiums for aluminum contracts), and (iii) unobservable inputs (e.g., aluminum and energy prices beyond those quoted in the market). For periods beyond the term of quoted market prices for aluminum, Alcoa Corporation estimates the price of aluminum by extrapolating the 10-year LME forward curve. For periods beyond the term of quoted market prices for the Midwest premium, management estimates the Midwest premium based on recent transactions. Additionally, for periods beyond the term of quoted market prices for energy, management has developed a forward curve based on independent consultant market research. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence (Level 2). In the absence of such evidence, management’s best estimate is used (Level 3). If a significant input that is unobservable in one period becomes observable in a subsequent period, the related asset or liability would be transferred to the appropriate classification (Level 1 or 2) in the period of such change (there were no such transfers in the periods presented). There were no purchases, sales or settlements of Level 3 derivative instruments in the periods presented. Level 3 derivative instruments outstanding as of December 31, 2019 are described in the table below: Description Designation Contract Termination Unobservable Inputs Impacting Valuation Sensitivity to Inputs Power contracts Embedded derivative that indexes price of power to the LME price of aluminum plus the Midwest premium Cash flow hedge of forward sales of aluminum March 2026 December 2029 February 2036 LME price, Midwest premium and MWh per year Increase in LME price and/or the Midwest premium results in a higher cost of power and a decrease to the derivative asset or increase to the derivative liability Embedded derivative that indexes price of power to the LME price of aluminum Cash flow hedge of forward sales of aluminum September 2027 December 2019 LME price and MWh per year Increase in LME price results in a higher cost of power and an increase to the derivative liability Embedded derivative that indexes the price of power to the credit spread between the Company and the counterparty Not designated October 2028 Estimated credit spread Wider credit spread results in a higher cost of power and increase in the derivative liability Financial contract Hedge power prices Cash flow hedge of future purchases of electricity July 2021 Power price Lower power prices result in a lower derivative asset In addition to the instruments presented above, Alcoa Corporation had three instruments that were not designated as cash flow or fair value hedges that expired prior to December 31, 2019. Alcoa Corporation had a financial contract that expired in August 2017 that hedged anticipated power requirements at one of its smelters. Also, Alcoa Corporation had a natural gas supply contract with an LME-linked ceiling that expired in October 2018. Additionally, Alcoa Corporation had a power contract that expired on March 31, 2019 containing an embedded derivative that indexed the price of power to the LME price of aluminum plus the Midwest premium. At the time this derivative liability was recognized, an equivalent amount was recognized as a deferred charge in Other noncurrent assets on the accompanying Consolidated Balance Sheet. The amortization of this deferred charge was recognized in Other expenses, net on the accompanying Statement of Consolidated Operations as power is received over the life of the contract. Alcoa and the counterparty entered into a new power contract which also contains an embedded derivative expiring March 2026 (see above). Realized and unrealized gains and losses from these three contracts were included in Other expenses, net. At December 31, 2019, the outstanding Level 3 instruments are associated with seven smelters. At December 31, 2019 and 2018, the power contracts with embedded derivatives designated as cash flow hedges hedge forecasted aluminum sales of 2,347 kmt and 2,508 kmt, respectively. At December 31, 2019 and 2018, the financial contract hedges forecasted electricity purchases of 3,891,096 and 6,348,276 megawatt hours, respectively. The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments (megawatt hours in MWh): December 31, 2019 Unobservable Input Unobservable Input Range Asset Derivatives Financial contract $ 74 Interrelationship of Electricity (per MWh) 2020: $62.66 forward energy price and the Consumer Price Index 2021: $51.59 Total Asset Derivatives $ 74 Liability Derivatives Power contract $ 225 MWh of energy needed LME (per mt) 2020: $1,789 to produce the forecasted 2027: $2,340 mt of aluminum Electricity Rate of 4 million MWh per year Power contracts 373 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2020: $1,789 2029: $2,448 2036: $2,746 Midwest premium (per pound) 2020: $0.1450 2029: $0.1625 2036: $0.1625 Electricity Rate of 11 million MWh per year Power contract 17 Estimated spread between the 30-year debt yield of Alcoa and the counterparty Credit spread 2.85%: 30-year debt yield spread 6.30%: Alcoa (estimated) 3.45%: counterparty Total Liability Derivatives $ 615 The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives December 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Current—financial contract $ 57 $ 70 Noncurrent—power contract — 41 Noncurrent—financial contract 17 42 Total derivatives designated as hedging instruments $ 74 $ 153 Total Asset Derivatives $ 74 $ 153 Liability Derivatives Derivatives designated as hedging instruments: Current—power contracts $ 47 $ 46 Noncurrent—power contracts 551 218 Total derivatives designated as hedging instruments $ 598 $ 264 Derivatives not designated as hedging instruments: Current—power contract — $ 5 Current—embedded credit derivative 3 4 Noncurrent—embedded credit derivative 14 16 Total derivatives not designated as hedging instruments $ 17 $ 25 Total Liability Derivatives $ 615 $ 289 The following table shows the net fair values of the Level 3 derivative instruments at December 31, 2019 and the effect on these amounts of a hypothetical change (increase or decrease of 10%) in the market prices or rates that existed as of December 31, 2019: Fair value asset/(liability) Index change of + / -10% Power contracts $ (598 ) $ 356 Embedded credit derivative (17 ) 2 Financial contract 74 22 The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities 2019 Power contract Financial contract Power contracts Embedded credit derivative January 1, 2019 $ 41 $ 112 $ 269 $ 20 Total gains or losses included in: Sales (realized) — — (44 ) — Cost of goods sold (realized) — (86 ) — — Other expenses, net (unrealized) — — (2 ) (2 ) Other comprehensive (loss) income (unrealized) (41 ) 52 396 — Other — (4 ) (21 ) (1 ) December 31, 2019 $ — $ 74 $ 598 $ 17 Change in unrealized gains or losses included in earnings for derivative instruments held at December 31, 2019: Other expenses, net $ — $ — $ 1 $ 1 Assets Liabilities 2018 Power contract Financial contract Power contracts Embedded credit derivative January 1, 2018 $ — $ 197 $ 1,146 $ 27 Total gains or losses included in: Sales (realized) — — (100 ) — Cost of goods sold (realized) — (62 ) — Other expenses, net (unrealized) — — (19 ) (6 ) Other comprehensive income (loss) (unrealized) 40 (11 ) (745 ) — Other 1 (12 ) (13 ) (1 ) December 31, 2018 $ 41 $ 112 $ 269 $ 20 Change in unrealized gains or losses included in earnings for derivative instruments held at December 31, 2018: Other expenses, net $ — $ — $ (1 ) $ (4 ) Derivatives Designated As Hedging Instruments—Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, effective on January 1, 2018, the entire amount of unrealized gains or losses on the derivative is reported as a component of Other comprehensive (loss) income. Prior to January 1, 2018, only the effective portion of unrealized gains or losses on the derivative is reported as a component of Other comprehensive (loss) income while the ineffective portion of unrealized gains or losses is recognized directly in earnings immediately. On April 1, 2018, Alcoa Corporation adopted guidance issued by the FASB to the accounting for hedging activities, which included the elimination of the concept of ineffectiveness. Accordingly, there is no longer a requirement to separately measure and report ineffectiveness. In all periods presented, realized gains or losses on the derivative are reclassified from Other comprehensive (loss) income into earnings in the same period or periods during which the hedged transaction impacts earnings. Additionally, gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized directly in earnings immediately. Assuming market rates remain constant with the rates at December 31, 2019, a realized loss of $47 related to power contracts and a realized gain of $57 related to the financial contract are expected to be recognized in Sales and Cost of goods sold, respectively, over the next 12 months. 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: 2019 2018 December 31, Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 879 $ 879 $ 1,113 $ 1,113 Restricted cash 4 4 3 3 Long-term debt due within one year 1 1 1 1 Long-term debt, less amount due within one year 1,799 1,961 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, including amounts 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 | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | P. Income Taxes Provision for income taxes. The components of (Loss) income before income taxes were as follows: 2019 2018 2017 Domestic $ (1,000 ) $ (752 ) $ (686 ) Foreign 562 2,377 1,886 Total $ (438 ) $ 1,625 $ 1,200 Provision for income taxes consisted of the following: 2019 2018 2017 Current: Federal $ (4 ) $ 5 $ 3 Foreign 404 757 421 State and local — — — 400 762 424 Deferred: Federal 2 (21 ) 25 Foreign 13 (9 ) 143 State and local — — — 15 (30 ) 168 Total $ 415 $ 732 $ 592 Federal includes U.S. income taxes related to foreign income. A reconciliation of the U.S. federal statutory rate to Alcoa’s effective tax rate was as follows (the effective tax rate was a provision on loss in 2019 and a provision on income in 2018 and 2017): 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 35.0 % Changes in valuation allowances (65.3 ) 3.4 24.9 Non-deductible losses on foreign divestitures (22.6 ) — — Taxes on foreign operations—rate differential (19.3 ) 12.6 (10.4 ) Noncontrolling interest (6.8 ) 1.0 1.4 Global intangible low-taxed income — 9.9 — Other (1.9 ) (2.9 ) (1.6 ) Effective tax rate (94.9 )% 45.0 % 49.3 % Certain components of the 2019 restructuring charges resulting from the MRC divestiture and the Avilés and La Coruña facilities curtailment and subsequent divestiture are not deductible for tax purposes. These amounts are $65 for MRC and $35 for Avilés and La Coruña combined and are included in Non-deductible losses on foreign divestitures in the above table. See Note C for additional information on the divestiture charges. In late 2019, AWAB received an extension of its tax holiday related to production at the Alumar refinery. This holiday was due to end December 31, 2022 but was extended to December 31, 2027. The holiday decreases AWAB’s tax rate on income generated by the Alumar refinery from 34% to 15.25%, which will result in future cash tax savings. As a result of the extension of the holiday, as well as an updated analysis of the deferred tax assets expected to reverse as described below with respect to the Juruti holiday, AWAB’s existing deferred tax assets that are expected to reverse during the holiday period were remeasured at the lower tax rate. In 2019, this remeasurement resulted in both a decrease to AWAB’s deferred tax assets and a discrete income tax charge of $7 ($4 after noncontrolling interest). In mid-2017, AWAB received approval for a tax holiday related to the operation of the Juruti (Brazil) bauxite mine. This tax holiday was made effective as of January 1, 2017 (retroactively) and decreased AWAB’s tax rate on income generated by the Juruti mine from 34% to 15.25%, which results in future cash tax savings through December 31, 2026. As a result of this income tax rate change, AWAB’s existing deferred tax assets that are expected to reverse during the holiday period were remeasured at the lower tax rate. In 2017, this remeasurement resulted in both a decrease to AWAB’s deferred tax assets and a discrete income tax charge of $26 ($15 after noncontrolling interest). An updated analysis of the deferred tax assets expected to reverse during the holiday period resulted in both an increase to AWAB’s deferred tax assets and a discrete income tax benefit of $5 ($3 after noncontrolling interest) in 2018. Deferred income taxes. The components of deferred tax assets and liabilities based on the underlying attributes without regard to jurisdiction were as follows: 2019 2018 December 31, Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Tax loss carryforwards $ 1,411 $ — $ 1,231 $ — Employee benefits 698 — 683 — Loss provisions 203 — 212 — Investment basis differences 164 — 162 — Depreciation 72 438 91 428 Derivatives and hedging activities 154 22 53 39 Tax credit carryforwards 26 — 27 — Deferred income/expense 11 134 10 103 Other 49 6 87 1 2,788 600 2,556 571 Valuation allowance (1,778 ) — (1,684 ) — Total $ 1,010 $ 600 $ 872 $ 571 The following table details the expiration periods of the deferred tax assets presented above: December 31, 2019 Expires within 10 years Expires within 11-20 years No expiration Other Total Tax loss carryforwards $ 333 $ 323 $ 755 $ — $ 1,411 Tax credit carryforwards 17 9 — — 26 Other — — 170 1,181 1,351 Valuation allowance (350 ) (318 ) (300 ) (810 ) (1,778 ) Total $ — $ 14 $ 625 $ 371 $ 1,010 Deferred tax assets with no expiration may still have annual limitations on utilization. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. The total deferred tax asset (net of valuation allowance) is supported by projections of future taxable income exclusive of reversing temporary differences and taxable temporary differences that reverse within the carryforward period. The composition of Alcoa’s net deferred tax asset by jurisdiction as of December 31, 2019 was as follows: Domestic Foreign Total Deferred tax assets $ 1,054 $ 1,734 $ 2,788 Valuation allowance (898 ) (880 ) (1,778 ) Deferred tax liabilities (149 ) (451 ) (600 ) Total $ 7 $ 403 $ 410 The Company has several income tax filers in various foreign countries. Of the $403 net deferred tax asset included under the Foreign column in the table above, approximately 90% relates to five of Alcoa’s income tax filers as follows: a $205 deferred tax asset for Alcoa Alumínio S.A. in Brazil; a $137 deferred tax asset for Alcoa Canada Company, a $130 net deferred tax asset for AWAB in Brazil; a $89 deferred tax asset for Española (collectively with Alcoa Canada Company, Alumínio and AWAB, the Foreign Filers) in Spain; and a $197 net deferred tax liability for AofA. The future realization of the net deferred tax asset for each of the Foreign Filers was based on projections of the respective future taxable income (defined as the sum of pretax income, other comprehensive income, and permanent tax differences), exclusive of reversing temporary differences and carryforwards. The realization of the net deferred tax assets of the Foreign Filers is not dependent on any tax planning strategies. Alcoa Canada Company is in a three-year cumulative loss position for the period ended December 31, 2019 without a valuation allowance where, in management’s judgment, the weight of the positive evidence more than offsets the negative evidence of the cumulative losses. Upon changes in facts and circumstances, management may conclude that Alcoa Canada Company’s deferred tax assets may not be realized, resulting in a future charge to establish a valuation allowance. Management has forecasted taxable income for each of the Foreign Filers for the foreseeable future. This forecast is based on macroeconomic indicators and involves assumptions related to, among others: commodity prices; volume levels; and key inputs and raw materials, such as bauxite, alumina, caustic soda, calcined petroleum coke, liquid pitch, energy, labor, and transportation costs. These are the same assumptions utilized by management to develop the financial and operating plan that is used to manage the Company and measure performance against actual results. T he majority of the Alcoa Canada Company net deferred tax assets relate to pension obligations and derivatives. The majority of the other Foreign Filers’ net deferred tax assets relate to tax loss carryforwards. The Foreign Filers do not have a history of tax loss carryforwards expiring unused. Additionally, tax loss carryforwards have an infinite life under the respective income tax codes in Brazil and Spain. However, utilization of an existing tax loss carryforward is limited to 30% and 25% of taxable income in a particular year in Brazil and Spain, respectively. Accordingly, management concluded that the net deferred tax assets of the Foreign Filers will more likely than not be realized in future periods, resulting in no need for a partial or full valuation allowance as of December 31, 2019. The following table details the changes in the valuation allowance: December 31, 2019 2018 2017 Balance at beginning of year $ (1,684 ) $ (1,927 ) $ (1,755 ) Establishment of new allowances (1) — (86 ) (94 ) Net change to existing allowances (2) (101 ) 312 (33 ) Foreign currency translation 7 17 (45 ) Balance at end of year $ (1,778 ) $ (1,684 ) $ (1,927 ) (1) This line item reflects valuation allowances initially established as a result of a change in management’s judgment regarding the realizability of deferred tax assets. (2) This line item reflects movements in previously established valuation allowances, which increase or decrease as the related deferred tax assets increase or decrease. Such movements occur as a result of remeasurement due to a tax rate change and changes in the underlying attributes of the deferred tax assets, including expiration of the attribute and reversal of the temporary difference that gave rise to the deferred tax asset. In 2018, Alcoa immediately established a full valuation allowance of $86 related to an initial deferred tax asset associated with the Company’s equity interest in Elysis TM TM TM TM TM TM In 2017, the Company established a valuation allowance of $94 related to the remaining deferred tax assets in Iceland (an initial allowance was previously established in 2015). This amount was comprised of a $60 discrete income charge recognized in the Provision for income taxes on the accompanying Consolidated Statement of Operations and a $34 charge to Accumulated other comprehensive loss. These deferred tax assets relate to tax loss carryforwards, which have an expiration period through 2026, and deferred losses associated with derivative and hedging activities. After weighing all available positive and negative evidence, management determined that it was no longer more likely than not that Alcoa will realize the tax benefit of these deferred tax assets. This conclusion was based on existing cumulative losses and a short expiration period. Such losses were generated as a result of intercompany interest expense under the Company’s global treasury and cash management system and the realization of deferred losses associated with an LME-linked embedded derivative in a power contract (see Note O). This interest expense is expected to continue, and additional deferred losses associated with the embedded derivative will be realized in future years. As a result, management estimates that there will not be sufficient taxable income available to utilize the operating losses during the expiration period. The need for this valuation allowance will be assessed on a continuous basis in future periods and, as a result, a portion or all of the allowance may be reversed based on changes in facts and circumstances. Undistributed net earnings. The cumulative amount of Alcoa’s foreign undistributed net earnings deemed to be permanently reinvested was approximately $1,792 as of December 31, 2019. Alcoa Corporation has several commitments and obligations related to the Company’s operations in various foreign jurisdictions; therefore, management has no plans to distribute such earnings in the foreseeable future. Alcoa Corporation continuously evaluates its local and global cash needs for future business operations and anticipated debt facilities, which may influence future repatriation decisions. It is not practicable to estimate the tax liability that might be incurred if such earnings were remitted to the U.S. Unrecognized tax benefits. Alcoa and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various foreign and U.S. state jurisdictions. With few exceptions, the Company is not subject to income tax examinations by tax authorities for years prior to 2014. For U.S. federal income tax purposes, virtually all of the Company’s U.S. operations were included in the income tax filings of ParentCo’s U.S. consolidated tax group prior to the Separation Date. Since that time, the Company’s U.S. consolidated tax group, comprised of the referenced U.S. operations, has filed U.S. federal income tax returns for the two-month 2016 post-separation period as well as tax years 2017 and 2018, none of which have been examined by the Internal Revenue Service. The U.S. federal income tax filings of ParentCo’s U.S. consolidated tax group have been examined for all prior periods through the Separation Date. Foreign jurisdiction tax authorities are in the process of examining income tax returns of several of Alcoa’s subsidiaries for various tax years. Excluding the matter discussed below, the period under foreign examination includes the income tax years from 2006 through 2017. For U.S. state income tax purposes, the Company and its subsidiaries remain subject to income tax examinations for the 2015 tax year and forward (as of December 31, 2019, there are no active examinations). In December 2019, AofA received a statement of audit position (SOAP) from the Australian Taxation Office (ATO) related to the pricing of certain historic third-party alumina sales. The SOAP proposed adjustments that would result in additional income tax payable by AofA of approximately $144 (A$212), exclusive of interest and penalties. The SOAP is currently the subject of an independent review process within the ATO. At the conclusion of this process, the ATO may or may not issue a tax assessment. If an assessment were to be issued, in accordance with the ATO dispute procedures, it is expected that AofA would pay 50% of the disputed tax amount to the ATO. AofA could then pursue all available dispute resolution methods, up to and including the filing of proceedings in the Australian Courts, without the ATO seeking further payment prior to final resolution. If AofA is ultimately successful, any amounts paid to the ATO would be refunded. Management does not agree with the ATO’s position and believes it is more likely than not the Company’s tax position will be sustained and, therefore, has not recognized any tax liabilities in relation to this matter. Because the resolution of this matter is uncertain at this time, the Company cannot predict the outcome which may materially affect its financial results. AofA is part of the Company’s joint venture with Alumina Limited, an Australian public company listed on the Australian Securities Exchange. The Company and Alumina Limited own 60% and 40%, respectively, of the joint venture entities, including AofA. A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows: December 31, 2019 2018 2017 Balance at beginning of year $ 30 $ 10 $ 23 Additions for tax positions of the current year — 1 1 Additions for tax positions of prior years — 20 — Reductions for tax positions of prior years — — (5 ) Settlements with tax authorities — — (6 ) Expiration of the statute of limitations — — (3 ) Foreign currency translation (1 ) (1 ) — Balance at end of year $ 29 $ 30 $ 10 For all periods presented, a portion of the balance at end of year pertains to state tax liabilities, which are presented before any offset for federal tax benefits. The effect of unrecognized tax benefits, if recorded, that would impact the annual effective tax rate for 2019, 2018, and 2017 would be (7)%, 2%, and 1%, respectively, of pretax book (loss) income. In 2018, the Company recorded a charge of $30 (€26), including $10 (€9) for interest, in Provision for income taxes on the accompanying Statement of Consolidated Operations to establish a liability for its 49% share of the estimated loss on a disputed income tax matter (see Spain in the Tax section of Note R). Alcoa does not anticipate that changes in its unrecognized tax benefits will have a material impact on the Statement of Consolidated Operations during 2020. It is the Company’s policy to recognize interest and penalties related to income taxes as a component of the Provision for income taxes on the accompanying Statement of Consolidated Operations. In 2019, 2018, and 2017 Alcoa recognized $2, $10, and $1, respectively, in interest and penalties. Due to the expiration of the statute of limitations, settlements with tax authorities, and refunded overpayments, the Company also recognized interest income of $1, $1, and $6 in 2019, 2018, and 2017, respectively. As of December 31, 2019, and 2018, the amount accrued for the payment of interest and penalties was $14 and $12, respectively. U.S. Tax Cuts and Jobs Act of 2017. On December 22, 2017, U.S. tax legislation known as the U.S. Tax Cuts and Jobs Act of 2017 (the TCJA) was enacted. For corporations, the TCJA amends the U.S. Internal Revenue Code by reducing the corporate income tax rate and modifying several business deduction and international tax provisions. Specifically, the corporate income tax rate was reduced to 21 % from 35 %. Other significant changes, in general, include the following, among others: (i) a mandatory one-time deemed repatriation of accumulated foreign earnings at either an 8 % or 15.5 % tax rate , depending on circumstances ; (ii) dividends received from foreign subsidiaries can be deducted in full regardless of ownership interest (previously suc h dividends were fully taxable) ; (iii) a 21 % or 10.5 % tax (effective in 2018) , depending on circumstances, on a new category of income, referred to as global intangible low tax income (GILTI), related to earnings of foreign entities above a prescribed return on the associated fixed asset base; (iv) a 5 % to 10 % tax (effective in 2018) on base erosion payments (deductible cross-border payments to related parties) that exceed 3 % of a company’s deductible expenses; and (v) net operating losses have an unlimited carryforward period (previously 20 years ) and no carryback period (previously 2 years ), but deductions for such losses are limited to 80 % of taxable income (previously 100 % of taxable income) beginning with the 2018 tax year. The Company’s preliminary analysis of the provisions of the TCJA resulted in a discrete income tax charge in the Company’s 2017 Consolidated Financial Statements of $22, which was reflected in Provision for income taxes on the accompanying Statement of Consolidated Operations for 2017. The $22 charge relates specifically to management’s reasonable estimate of the corporate income tax rate change, which resulted in the remeasurement of Alcoa’s deferred income tax accounts. On a gross basis, the Company reduced its deferred tax assets, valuation allowance, and deferred tax liabilities by $506, $433, and $51, respectively. Upon completion of the analysis around the TCJA provision, management concluded that there was no material impact to the Company’s 2017 Consolidated Financial Statements related to both the reduced corporate income tax rate and the other applicable provisions of the TCJA. In 2018, management completed its analysis of the impact of the tax law changes, including GILTI, that became effective January 1, 2018 under the TCJA related to Alcoa’s 2018 Consolidated Financial Statements. The Company made an accounting policy election to include as a period cost the tax impact generated by including GILTI in U.S. taxable income. The inclusion of GILTI in 2018 U.S. taxable income was fully offset by current U.S. tax losses and net operating loss carryforwards as expected. None of the remaining provisions of the TCJA had a material impact on the Company’s 2018 Consolidated Financial Statements. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Q. Asset Retirement Obligations Alcoa records AROs related to legal obligations associated with the standard operation of bauxite mines, alumina refineries, and aluminum smelters. These AROs consist primarily of costs associated with mine reclamation, closure of bauxite residue areas, spent pot lining disposal, and landfill closure. The Company also recognizes AROs for any significant lease restoration obligation, if required by a lease agreement, and for the disposal of regulated waste materials related to the demolition of certain power facilities. The following table details the carrying value of recorded AROs by major category, of which $111 and $122 was classified as a current liability as of December 31, 2019 and 2018, respectively: December 31, 2019 2018 Mine reclamation $ 205 $ 198 Closure of bauxite residue areas 282 231 Spent pot lining disposal 106 113 Demolition 85 76 Landfill closure 39 33 Balance at end of year $ 717 $ 651 The following table details the changes in the total carrying value of recorded AROs: December 31, 2019 2018 Balance at beginning of year $ 651 $ 725 Accretion expense 22 17 Liabilities incurred 148 63 Payments (90 ) (80 ) Reversals of previously recorded liabilities (12 ) (37 ) Foreign currency translation and other (2 ) (37 ) Balance at end of year $ 717 $ 651 In 2019, Reversals of previously recorded liabilities were primarily related to the to the divestiture of the Avilés and La Coruña (Spain) facilities. In 2018, Reversals of previously recorded liabilities includes $36 related to the Portovesme (Italy) smelters, (see Note D). Liabilities incurred in 2019 includes $72 related to the closure of the Point Comfort alumina refinery that was recorded in Restructuring and other charges, net, on the accompanying Statement of Consolidated Operations. See Note D for additional information. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | R. Contingencies and Commitments Unless specifically described to the contrary, all matters within Note R are the full responsibility of Alcoa Corporation pursuant to the Separation and Distribution Agreement. Additionally, the Separation and Distribution Agreement provides for cross-indemnities between the Company and Arconic for claims subject to indemnification. Contingencies Environmental Matters Alcoa Corporation participates in environmental assessments and cleanups at several locations. These include owned or operating facilities and adjoining properties, previously owned or operating facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. The following table details the changes in the carrying value of recorded environmental remediation reserves: Balance at December 31, 2016 $ 324 Liabilities incurred 11 Cash payments (48 ) Reversals of previously recorded liabilities (10 ) Foreign currency translation and other 17 Balance at December 31, 2017 294 Liabilities incurred 19 Cash payments (25 ) Reversals of previously recorded liabilities (3 ) Foreign currency translation and other (5 ) Balance at December 31, 2018 280 Liabilities incurred 73 Cash payments (17 ) Reversals of previously recorded liabilities (1 ) Balance at December 31, 2019 $ 335 At December 31, 2019 and 2018, the current portion of the remediation reserve balance was $39 and $44, respectively. In 2019, the Company incurred liabilities of $73 which was primarily related to the closure of the Point Comfort alumina refinery that was recorded in Restructuring and other charges, net, on the accompanying Statement of Consolidated Operations. See Note D. The remaining amount was recorded to Cost of goods sold. In 2018 and 2017, changes to the liability were the result of ongoing remediation work at various sites. The additional accruals were recorded to Cost of goods sold except for $2 and $8 in 2018 and 2017, respectively, that were recorded to Restructuring and other charges, net, on the accompanying Statement of Consolidated Operations. See Note D. The estimated timing of cash outflows on the environmental remediation reserve at December 31, 2019 is as follows: 2020 $ 39 2021 – 2025 187 Thereafter 109 Total $ 335 The Separation and Distribution Agreement includes provisions for the assignment or allocation of environmental liabilities between Alcoa Corporation and Arconic. In general, the respective parties are responsible for the environmental matters associated with their operations and the properties assigned to each, as well as certain environmental matters with a shared responsibility between the two companies. Reserve balances at December 31, 2019 and 2018, associated with significant sites with active remediation underway or for future remediation were $274 and $214, respectively. In management’s judgment, the Company’s reserves are sufficient to satisfy the provisions of the respective action plans. The Company’s significant sites include: Poços de Caldas, Brazil — The reserve a ssociated with the 2015 closure of the Alcoa Alumínio S.A. smelter in Poços de Caldas, Brazil, is 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. has remediation projects underway for its closed smelter sites at Fusina and Portovesme which have been approved by the Italian Ministry of Environment and Protection of Land and Sea (MOE). Work is ongoing for soil remediation at both sites with expected completion in 2020. Additionally, annual payments are made to MOE over a 10-year period through 2022 for groundwater emergency containment and natural resource damages at the Fusina site. A groundwater remediation project at Portovesme will have a final remedial design completed in 2020 which may result in a change to the existing reserve. Suriname —The reserve associated with the 2017 closure of the Suralco refinery and bauxite mine is 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 reserve associated with the 1990 closure of two mining areas and refineries near Hurricane Creek, Arkansas is for ongoing monitoring and maintenance for water quality surrounding the mine areas and residue disposal areas. Massena, New York —The reserve associated with the 2015 closure of the Massena East smelter by the Company’s subsidiary, Reynolds Metals Company, is 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. Point Comfort, Texas —The reserve associated with the 2019 closure of the Point Comfort alumina refinery is for disposal of industrial wastes contained at the site, subsurface remediation, and post-closure monitoring and maintenance. The final remediation plan is currently under review; such review could require the reserve balance to be adjusted. 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 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 areas 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 and remediating sites in several countries for potential redevelopment or to return the land to a natural state. In aggregate, there are approximately 35 remediation projects at these other sites that are 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 December 31, 2019 and 2018, the reserve balance associated with these activities was $61 and $66, respectively. Tax matters 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. In 2015, ParentCo filed an appeal of this assessment to Spain’s Central Tax Administrative Court which was denied. Two months later, ParentCo filed an appeal in Spain’s National Court (the National Court). The amount of this assessment, including interest, was $152 (€131) as of June 30, 2018. In July 2018, the National Court denied ParentCo’s appeal of the assessment; however, it required Spain’s tax authorities to 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. Subsequently, Arconic and Alcoa Corporation (collectively, the Companies) estimated the amount of the new assessment, including applicable interest, to be in the range of $24 to $59 (€21 to €53) after consideration of available net operating losses and tax credits. Under the Tax Matters Agreement related to the separation Transaction, unfavorable tax outcomes are split by Arconic and Alcoa Corporation 51% and 49%, respectively. 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. On November 8, 2018, the Companies filed a petition for appeal to Spain’s Supreme Court, which was accepted in March 2019 and an appeal was submitted on May 6, 2019. 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 $54 (R$220). 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 matters 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. 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 did 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 Purchase Obligations. Alcoa Corporation is party to unconditional purchase obligations for energy that expire between 2028 and 2037. Commitments related to these contracts total $153 in 2020, $211 in 2021, $216 in 2022, $221 in 2023, $227 in 202 4 , and $ thereafter. Expenditures under these contracts totaled $ in 201 9 , $ in 201 8 , and $ in 201 7 . Additionally, the Company has entered into other purchase commitments for energy, raw materials, and other goods and services, which total $ 2,123 in 20 20 , $ in 202 1 , $ in 202 2 , $ in 202 3 , $ in 202 4 , and $ thereafter. AofA has a Guarantees of Third Parties. As of December 31, 2019, the Company has no outstanding potential future payments for guarantees issued on behalf of a third party. At December 31, 2018, the Company had a maximum potential future payment for guarantees issued on behalf of a third party of $60. These guarantees related to project financing for the rolling mill in the Kingdom of Saudi Arabia. During 2019, Alcoa Corporation divested its interest in MRC, dissolving the guarantee related to project financing. Bank Guarantees and Letters of Credit. Alcoa Corporation has outstanding bank guarantees and letters of credit related to, among others, energy contracts, environmental obligations, legal and tax matters, outstanding debt, leasing obligations, workers compensation, and customs duties. The total amount committed under these instruments, which automatically renew or expire at various dates between 2020 and 2023, was $332 (includes $100 issued under a standby letter of credit agreement —see below) at December 31, 2019. Additionally, Arconic has outstanding bank guarantees and letters of credit related to the Company in the amount of $20 at December 31, 2019. In the event Arconic would be required to perform under any of these instruments, Arconic would be indemnified by Alcoa Corporation in accordance with the Separation and Distribution Agreement. Likewise, the Company has outstanding bank guarantees and letters of credit related to Arconic in the amount of $14 at December 31, 2019. In the event Alcoa Corporation would be required to perform under any of these instruments, the Company would be indemnified by Arconic in accordance with the Separation and Distribution Agreement. In August 2017, Alcoa Corporation entered into a standby letter of credit agreement, which expires on May 3, 2021 (extended originally in August 2018 and again in May 2019), with three financial institutions. The agreement provides for a $150 facility, which will be used by the Company for matters in the ordinary course of business. Alcoa Corporation’s obligations under this facility will be secured in the same manner as obligations under the Company’s Second Amended Revolving Credit Agreement. Additionally, this facility Surety Bonds. Alcoa Corporation has outstanding surety bonds primarily related to tax matters, contract performance, workers compensation, environmental-related matters, and customs duties. The total amount committed under these bonds, which automatically renew or expire at various dates, mostly in 2020, was $52 at December 31, 2019. Additionally, Arconic has outstanding surety bonds related to the Company in the amount of $14 at December 31, 2019. In the event Arconic would be required to perform under any of these instruments, Arconic would be indemnified by Alcoa Corporation in accordance with the Separation and Distribution Agreement. Likewise, the Company has outstanding surety bonds related to Arconic in the amount of $4 at December 31, 2019. In the event Alcoa Corporation would be required to perform under any of these instruments, the Company would be indemnified by Arconic in accordance with the Separation and Distribution Agreement. |
Leasing
Leasing | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leasing | S. Leasing As a result of the 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’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 38 years. Lease expense and operating cash flows for the year ended December 31, 2019, includes costs from operating leases of $78, variable lease payments of $16, and short-term rental expense of $6. New leases of $30 were added during 2019. Further, right-of-use assets totaling $6 were impaired in 2019 in conjunction with the permanent closure of the Point Comfort alumina refinery (see Note D). The Company does not have material financing leases. The following represents the aggregate right-of use assets and related lease obligations as of December 31, 2019: Amounts recognized in the Consolidated Balance Sheet at December 31, 2019: Properties, plants and equipment, net $ 154 Other current liabilities 61 Other noncurrent liabilities and deferred credits 100 Total operating lease liabilities $ 161 The weighted average lease term and weighted average discount rate as of December 31, 2019 were as follows: Weighted average lease term Operating leases 4.6 years Weighted average discount rate Operating leases 5.4% The future cash flows related to the operating lease obligations as of December 31, 2019 were as follows: Year Ending December 31, Operating leases 2020 $ 67 2021 51 2022 21 2023 12 2024 6 Thereafter 28 Total lease payments (undiscounted) 185 Less: discount to net present value (24 ) Total $ 161 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 |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Other Financial Information [Abstract] | |
Other Financial Information | T. Other Financial Information Interest Cost Components 2019 2018 2017 Amount charged to expense $ 121 $ 122 $ 104 Amount capitalized 13 14 17 $ 134 $ 136 $ 121 Other Expenses, Net 2019 2018 2017 Equity loss $ 49 $ 17 $ 28 Foreign currency losses (gains), net 16 (57 ) 8 Net gain from asset sales (3 ) — (116 ) Net (gain) loss on mark-to-market derivative instruments (O) (1 ) (25 ) 24 Non-service costs – 117 139 85 Other, net (16 ) (10 ) (2 ) $ 162 $ 64 $ 27 In 2017, Net gain from asset sales included a $122 gain related to the sale of Yadkin (see Note C). Other Noncurrent Assets December 31, 2019 2018 Gas supply prepayment (R) $ 437 $ 458 Prepaid gas transmission contract 281 275 Value-added tax credits 179 210 Goodwill (K) 150 151 Deferred mining costs, net 124 123 Intangibles, net (K) 52 57 Prepaid pension benefit (N) 33 63 Other 156 138 $ 1,412 $ 1,475 As part of a previous sale transaction of an equity investment, Alcoa maintained access to approximately 30% of the Dampier to Bunbury Natural Gas Pipeline transmission capacity in Western Australia for gas supply to The Value-added tax (VAT) credits (federal and state) relate to two of the Company’s subsidiaries in Brazil, AWAB and Alumínio, concerning the São Luís refinery. This refinery pays VAT on the purchase of goods and services used in the alumina production process. The credits generally can be utilized to offset the VAT charged on domestic sales of alumina and aluminum. However, there is not a domestic market in Brazil for the sale of alumina and the Company’s São Luís smelter has been fully curtailed since April 2015. In the fourth quarter of 2018, management performed an updated assessment of the future realizability of the state VAT credits amid unfavorable market conditions and a lack of a favorable power contract for the São Luís smelter. As a result, management determined it necessary to establish an allowance on the accumulated state VAT balances and recorded a $107 charge in Restructuring and other charges, net, (see Note D) on the accompanying Statement of Consolidated Operations. While the Company retains the ability to utilize the state credits in the future, practically only the restart of the São Luís smelter provides the opportunity to monetize these credits. No allowance was established on the federal VAT credits as they can be used to reduce other types of federal tax obligations. The state VAT amounts are expensed to Cost of goods sold as incurred. Management continues to maintain the São Luís smelter assets for the future in case of a potential restart. Other Noncurrent Liabilities and Deferred Credits December 31, 2019 2018 Accrued compensation and retirement costs $ 110 $ 107 Operating lease obligations (S) 100 — Deferred alumina sales revenue 52 61 Deferred energy credits 50 — Other 58 54 $ 370 $ 222 Deferred energy credits relate to cash received in 2019 for carbon dioxide emission credits from a governmental agency. The terms of the credits require the Company to comply with certain conditions for a period of three years. These deferred credits will be recognized as a reduction to Cost of goods sold once it is determined to be probable the Company will satisfy all conditions. Should the Company not meet all conditions during the three-year period, the credits will be repaid to the governmental agency. Cash and Cash Equivalents and Restricted Cash December 31, 2019 2018 Cash and cash equivalents $ 879 $ 1,113 Restricted cash 4 3 $ 883 $ 1,116 Restricted cash amounts are reported in Prepaid expenses and other current assets on the accompanying Consolidated Balance Sheet. Cash Flow Information Cash paid for interest and income taxes was as follows: 2019 2018 2017 Interest, net of amount capitalized $ 113 $ 111 $ 100 Income taxes, net of amount refunded 732 507 363 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Separation Transaction | Separation Transaction. On November 1, 2016 (the Separation Date), ParentCo separated into two standalone, publicly-traded companies, Alcoa Corporation and Arconic, effective at 12:01 a.m. Eastern Time (the Separation Transaction). Regular-way trading of Alcoa Corporation’s common stock began with the opening of the New York Stock Exchange on November 1, 2016 under the ticker symbol “AA.” The Company’s common stock has a par value of $0.01 per share. To effect the Separation Transaction, ParentCo undertook a series of transactions to separate the net assets and certain legal entities of ParentCo, resulting in an initial cash payment of $1,072 to ParentCo by Alcoa Corporation with the net proceeds of a previous debt offering (see Note L). Additionally, $247 was paid to Arconic by the Company in 2017, including $243 from the proceeds associated with the sale of certain energy operations (see Note C) In connection with the Separation Transaction, Alcoa Corporation and Arconic entered into certain agreements to implement the legal and structural separation between the two companies, govern the relationship between the Company and Arconic after the completion of the Separation Transaction, and allocate between Alcoa Corporation and Arconic various assets, liabilities, and obligations. These agreements included a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement, Transition Services Agreement, certain Patent, Know-How, Trade Secret License and Trademark License Agreements, and Stockholder and Registration Rights Agreement. |
Basis of Presentation | Basis of Presentation. The Consolidated Financial Statements of Alcoa Corporation are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). In accordance with GAAP, certain situations require management to make estimates based on judgments and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates upon subsequent resolution of identified matters. Certain amounts in previously issued financial statements were reclassified to conform to the current period presentation. 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 I for additional information. |
Principles of Consolidation | Principles of Consolidation. The Consolidated Financial Statements of the Company 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 applied to investments in affiliates and other joint ventures over which the Company 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, have an interest in, or operate the bauxite mines and alumina refineries within the Company’s Bauxite and Alumina segments (except for the Poços de Caldas mine and refinery and portions of the São Luís refinery and investment in Mineração Rio do Norte S.A., all in Brazil) and a portion (55%) of the Portland smelter (Australia) within the Company’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 (AofA), Alcoa World Alumina LLC (AWA), Alcoa World Alumina Brasil Ltda. (AWAB), and Alúmina Española, S.A. (Española). Alumina Limited’s interest in the equity of such entities is reflected as Noncontrolling interest on the accompanying Consolidated Balance Sheet. Management evaluates whether an Alcoa Corporation entity or interest is a variable interest entity and whether the Company is the primary beneficiary. Consolidation is required if both of these criteria are met. Alcoa Corporation does not have any variable interest entities requiring consolidation. |
Related Party Transactions | Related Party Transactions. Alcoa Corporation buys products from and sells products to various related companies, consisting of entities in which the Company retains a 50% or less equity interest, at negotiated prices between the two parties. These transactions were not material to the financial position or results of operations of Alcoa Corporation for all periods presented. |
Cash Equivalents | Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. |
Inventory Valuation | Inventory Valuation. Inventories are carried at the lower of cost or market, with the cost of inventories principally determined under the average cost method. Effective January 1, 2019, the Company changed its accounting method for valuing certain inventories from last-in, first-out (LIFO) to the average cost method. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented in the Company’s Consolidated Financial Statements. See Note I for additional information. |
Properties, Plants, and Equipment | Properties, Plants, and Equipment. Properties, plants, and equipment are recorded at cost. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. Depreciation is recorded principally on the straight-line method over the estimated useful lives of the assets. Depreciation is recorded on temporarily idled facilities until such time management approves a permanent closure. The following table details the weighted-average useful lives of structures and machinery and equipment by type of operation (numbers in years): Structures Machinery and equipment Bauxite mining 35 17 Alumina refining 28 29 Aluminum smelting and casting 37 23 Energy generation 33 24 Aluminum rolling 31 21 Repairs and maintenance are charged to expense as incurred while costs for significant improvements that add productive capacity or that extend the useful life are capitalized. Gains or losses from the sale of assets are generally recorded in Other expenses, net. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable. |
Leases | Leases. The Company determines whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset which the Company has the right to control. Both operating and financing lease right-of-use (ROU) assets are included in Properties, plants, and equipment with the corresponding operating lease liabilities included within Other current liabilities and Other noncurrent liabilities and deferred credits, while financing lease liabilities are included in Long-term debt due within one year and Long-term debt, less amount due within one year on the Consolidated Balance Sheet. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate at the commencement date in determining the present value of lease payments unless a rate is implicit in the lease. Lease terms include options to extend the lease when it is reasonably certain that those options will be exercised. Leases with an initial term of 12 months or less, including anticipated renewals, are not recorded on the balance sheet. The Company has made a policy election not to record any non-lease components of a lease agreement in the lease liability. Variable lease payments are not presented as part of the initial ROU asset or liability recorded at the inception of a contract. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. |
Equity Investments | Equity Investments. Alcoa invests in a number of privately-held companies, primarily through joint ventures and consortia, which are accounted for using the equity method. The equity method is applied in situations where the Company has the ability to exercise significant influence, but not control, over the investee. Management reviews equity investments for impairment whenever certain indicators are present suggesting that the carrying value of an investment is not recoverable. |
Deferred Mining Costs | Deferred Mining Costs. Alcoa recognizes deferred mining costs during the development stage of a mine life cycle. Such costs include the construction of access and haul roads, detailed drilling and geological analysis to further define the grade and quality of the known bauxite, and overburden removal costs. These costs relate to sections of the related mines where the Company is currently extracting bauxite or preparing for production in the near term. These sections are outlined and planned incrementally and generally are mined over periods ranging from one to five years, depending on mine specifics. The amount of geological drilling and testing necessary to determine the economic viability of the bauxite deposit being mined is such that the reserves are considered to be proven, and the mining costs are amortized based on this level of reserves. Deferred mining costs are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. Goodwill is not amortized but is reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell or exit a business. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has five reporting units, of which three are included in the Aluminum segment (smelting/casting, energy generation, and rolling operations). The remaining two reporting units are the Bauxite and Alumina segments. Of these five reporting units, only Bauxite and Alumina contain goodwill. As of December 31, 2019, the carrying value of the goodwill for Bauxite and Alumina was $50 and $100, respectively. These amounts include an allocation of goodwill held at the corporate level (see Note K). Goodwill is tested for impairment by assessing qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount or performing a quantitative assessment using a discounted cash flow method. The qualitative assessment considers factors such as general economic conditions, equity and credit markets, industry and market conditions, and earnings and cash flow trends. If the qualitative assessment indicates a possible impairment, then a quantitative impairment test is performed to determine the fair value of the reporting unit using a discounted cash flow method. Otherwise, no further analysis is required. Alcoa’s policy for its annual review of goodwill is to perform the quantitative impairment test for each of its two reporting units that contain goodwill at least once during every three-year period as part of its annual review of goodwill. Intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by type of operation (numbers in years): Software Other intangible assets Bauxite mining 3 10 Alumina refining 7 21 Aluminum smelting and casting 3 39 Energy generation — 29 Aluminum rolling 3 20 |
Asset Retirement Obligations | Asset Retirement Obligations. Alcoa recognizes asset retirement obligations (AROs) related to legal obligations associated with the standard operation of bauxite mines, alumina refineries, and aluminum smelters. These AROs consist primarily of costs associated with mine reclamation, closure of bauxite residue areas, spent pot lining and regulated waste materials disposal, and landfill closure. Additionally, costs are recorded as AROs upon management’s decision to permanently close and demolish certain structures and for any significant lease restoration obligations. The fair values of these AROs are recorded on a discounted basis at the time the obligation is incurred and accreted over time for the change in present value. Additionally, the Company capitalizes asset retirement costs by increasing the carrying amount of the related long-lived assets and depreciating these assets over their remaining useful life. Certain conditional asset retirement obligations related to alumina refineries, aluminum smelters, rolling mills, and energy generation facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. The fair value of these asset retirement obligations will be recorded when a reasonable estimate of the ultimate settlement date can be made. |
Environmental Matters | Environmental Matters. Environmental related expenditures for current operations are expensed or capitalized, as appropriate. Expenditures relating to existing conditions caused by past operations, which will not contribute to future revenues, are expensed. Liabilities are recorded when remediation costs are probable and can be reasonably estimated. The estimates also include costs related to other potentially responsible parties to the extent that Alcoa has reason to believe such parties will not fully pay their proportionate share. In instances where the Company has ongoing monitoring and maintenance responsibilities, it is Alcoa’s policy to maintain a reserve equal to five years of expected costs. The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations. |
Litigation Matters | Litigation Matters. For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a matter is deemed to be probable and the loss is reasonably estimable. With respect to unasserted claims or assessments, management must first determine that the probability that an assertion will be made is likely . T hen, a determination as to the likelihood of an unfavorable outcome and the ability to reasonably estimate the potential loss is made. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss. Legal costs, which are primarily for general litigation, environmental compliance, tax disputes, and general corporate matters, are expensed as incurred. |
Revenue Recognition | Revenue Recognition. The Company recognizes revenue when it satisfies a performance obligation(s) in accordance with the provisions of a customer order or contract. This is achieved when control of the product has been transferred to the customer, which is generally determined when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation. Accordingly, the sale of Alcoa’s products to its customers represent single performance obligations for which revenue is recognized at a point in time. Revenue is based on the consideration it expects to receive in exchange for its products. Returns and other adjustments have not been material. Based on the foregoing, no significant judgment is required to determine when control of a product has been transferred to a customer. The Company considers shipping and handling activities as costs to fulfill the promise to transfer the related products. As a result, customer payments of shipping and handling costs are recorded as a component of revenue. Taxes collected (e.g., sales, use, value-added, excise) from its customers related to the sale of its products are remitted to governmental authorities and excluded from revenue. |
Stock-Based Compensation | Stock-Based Compensation. Compensation expense for employee equity grants is recognized using the non-substantive vesting period approach, in which the expense (net of estimated forfeitures) is recognized ratably over the requisite service period based on the grant date fair value. The fair value of new stock options is estimated on the date of grant using a lattice-pricing model. Determining the fair value of stock options at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield, volatility, annual forfeiture rate, and exercise behavior. These assumptions may differ significantly between grant dates because of changes in the actual results of these inputs that occur over time. Most plan participants can choose whether to receive their award in the form of stock options, stock units, or a combination of both. This choice is made before the grant is issued and is irrevocable. |
Pensions and Other Postretirement Benefits | Pension and Other Postretirement Benefits. Liabilities and expenses for pension and other postretirement benefits are determined using actuarial methodologies and incorporate significant assumptions, including the interest rate used to discount the future estimated liability, the expected long-term rate of return on plan assets, and several assumptions relating to the employee workforce (salary increases, health care cost trend rates, retirement age, and mortality). The yield curve model used to develop the discount rate parallels the plans’ projected cash flows and has a weighted average duration of 11 years. The underlying cash flows of the high quality corporate bonds included in the model exceed the cash flows needed to satisfy the Company’s plan obligations multiple times. If a deep market of high quality corporate bonds does not exist in a country, then the yield on government bonds plus a corporate bond yield spread is used. The expected long-term rate of return on plan assets is generally applied to a five-year market-related value of plan assets (a four-year average or the fair value at the plan measurement date is used for certain non-U.S. plans). The process used by management to develop this assumption is one that relies on forward-looking investment returns by asset class. Management incorporates expected future investment returns on current and planned asset allocations using information from various external investment managers and consultants, as well as management’s own judgment. Mortality rate assumptions are based on mortality tables and future improvement scales published by third parties, such as the Society of Actuaries, and consider other available information including historical data as well as studies and publications from reputable sources. |
Derivatives and Hedging | Derivatives and Hedging. Derivatives are held for purposes other than trading and are part of a formally documented risk management program. Alcoa accounts for hedges of firm customer commitments for aluminum as fair value hedges. The fair values of the derivatives and changes in the fair values of the underlying hedged items are reported as assets and liabilities in the Consolidated Balance Sheet. Changes in the fair values of these derivatives and underlying hedged items generally offset and are recorded each period in Sales, consistent with the underlying hedged item. The Company accounts for hedges of foreign currency exposures and certain forecasted transactions as cash flow hedges. The fair values of the derivatives are recorded as assets and liabilities in the Consolidated Balance Sheet. The changes in the fair values of these derivatives are recorded in Other comprehensive (loss) income and are reclassified to Sales, Cost of goods sold, or Other expenses, net in the period in which earnings are impacted by the hedged items or in the period that the transaction no longer qualifies as a cash flow hedge. These contracts cover the same periods as known or expected exposures, generally not exceeding five years. If no hedging relationship is designated, the derivative is marked to market through Other expenses, net. Cash flows from derivatives are recognized in the Statement of Consolidated Cash Flows in a manner consistent with the underlying transactions. |
Income Taxes | Income Taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid and result from differences between the financial and tax bases of Alcoa’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management applies judgement in assessing all available positive and negative evidence and considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Alcoa’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitation has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. |
Foreign Currency | Foreign Currency. The local currency is the functional currency for Alcoa’s significant operations outside the United States, except for certain operations in Canada and Iceland, where the U.S. dollar is used as the functional currency. The determination of the functional currency for Alcoa’s operations is made based on the appropriate economic and management indicators. Where local currency is the functional currency, assets and liabilities are translated into U.S. dollars using year-end exchange rates and income and expenses are translated using the average exchange rates for the reporting period. Unrealized foreign currency translation gains and losses are deferred in Accumulated other comprehensive loss on the Consolidated Balance Sheet. |
Recently Adopted and Issued Accounting Guidance | Recently Adopted Accounting Guidance. On January 1, 2019, the Company 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’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 S for additional information related to the adoption of this standard. Alcoa’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 Leases: Land Easement Practical Expedient for Transition 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2018-07 Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting Recently Issued Accounting Guidance. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) which is intended to simply the accounting for income taxes by eliminating certain exceptions and simplifying certain requirements under Topic 740. Updates are related to intraperiod tax allocation, deferred tax liabilities for equity method investments, interim period tax calculations, tax laws or rate changes in interim periods, and income taxes related to employee stock ownership plans. The guidance for ASU No. 2019-12 becomes effective for Alcoa on January 1, 2021. Management is currently evaluating the impact of these changes on the Consolidated Financial Statements. In November 2019, the FASB issued ASU No. 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). In June 2018, the FASB issued ASU No. 2018-07, Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 effectively changed the accounting for nonemployee share-based payment transactions to be consistent with the accounting for employee share-based payments but did not provide guidance on measuring share-based payment awards granted to a customer. The amendments in ASU No. 2019-08 clarify that an entity must measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718. The Company adopted ASU No. 2018-07 effective January 1, 2019, and as such, ASU No. 2019-08 will be effective for the Company on January 1, 2020. The adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements as the Company does not utilize share-based payments for customers. In August 2018, the FASB issued separate guidance regarding the respective disclosure requirements associated with fair value measurements and defined benefit plans. This guidance makes changes to the disclosures of fair value measurements and defined benefit plans through several removals, modifications, additions, and/or clarifications of the existing requirements. The following are the changes that will have an immediate disclosure impact for Alcoa upon adoption of the guidance for fair value measurements: (i) disclosure of the valuation processes for Level 3 fair value measurements is no longer required, (ii) changes in unrealized gains and losses for the reporting period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period is a new disclosure requirement, and (iii) the range and weighted average (or other reasonable and rational method) of significant unobservable inputs used to develop Level 3 fair value measurements is a new disclosure requirement. The following are the changes that will have an immediate disclosure impact for the Company upon adoption of the guidance for defined benefit plans: (i) disclosure of the amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year is no longer required, (ii) disclosure of the effects of a one-percentage-point change in assumed health care cost trend rates on both the aggregate of the service and interest cost components of net periodic benefit costs and the benefit obligation for postretirement health care benefits is no longer required, and (iii) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the reporting period is a new disclosure requirement. The guidance for fair value measurements and defined benefit plans becomes effective for the Company on January 1, 2020 and December 31, 2020, respectively, with early adoption permitted. 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 the Company on January 1, 2020, with early adoption permitted. Management has completed our assessment of the impact related to this guidance and concluded that the adoption of this guidance will not have a material impact on the Company’s 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 the Company on January 1, 2020. Management has completed our assessment of the impact related to this guidance and concluded that the adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Weighted-Average Useful Lives of Structures and Machinery and Equipment | The following table details the weighted-average useful lives of structures and machinery and equipment by type of operation (numbers in years): Structures Machinery and equipment Bauxite mining 35 17 Alumina refining 28 29 Aluminum smelting and casting 37 23 Energy generation 33 24 Aluminum rolling 31 21 |
Weighted-Average Useful Lives of Software and Other Intangible Assets | The following table details the weighted-average useful lives of software and other intangible assets by type of operation (numbers in years): Software Other intangible assets Bauxite mining 3 10 Alumina refining 7 21 Aluminum smelting and casting 3 39 Energy generation — 29 Aluminum rolling 3 20 |
Restructuring and Other Charg_2
Restructuring and Other Charges, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges, Net | Restructuring and other charges, net for each year in the three-year period ended December 31, 2019 were comprised of the following: 2019 2018 2017 Loss on divestitures $ 446 $ — $ — Asset impairments 225 18 40 Settlements and/or curtailments related to retirement benefits (N) 119 331 8 Asset retirement obligations (Q) 75 5 10 Environmental remediation (R) 69 2 8 Severance and employee termination costs 51 2 15 Allowance on value-added tax credits (T) — 107 — Power contract payments – non-recurring — 62 244 Legal matter in Italy — — (22 ) Other 52 48 49 Reversals of previously recorded layoff and other costs (6 ) (48 ) (43 ) Restructuring and other charges, net $ 1,031 $ 527 $ 309 |
Schedule of Restructuring and Other Charges, Net by Reportable Segments, Pretax | 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: 2019 2018 2017 Bauxite $ 5 $ 1 $ 2 Alumina 272 112 3 Aluminum 611 102 51 Segment total 888 215 56 Corporate 143 312 253 Total Restructuring and other charges, net $ 1,031 $ 527 $ 309 |
Activity and Reserve Balances for Restructuring Charges | Activity and reserve balances for restructuring charges were as follows: Severance and employee termination costs Other costs Total Balances at December 31, 2016 $ 38 $ 28 $ 66 Restructuring charges, net 15 50 65 Cash payments (30 ) (43 ) (73 ) Reversals and other (12 ) (1 ) (13 ) Balances at December 31, 2017 11 34 45 Restructuring charges, net 2 109 111 Cash payments (7 ) (95 ) (102 ) Reversals and other (1 ) (6 ) (7 ) Balances at December 31, 2018 5 42 47 Restructuring charges, net 51 161 212 Cash payments (19 ) (99 ) (118 ) Reversals and other (2 ) (2 ) (4 ) Balances at December 31, 2019 $ 35 $ 102 $ 137 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results, Capital Expenditures and Assets of Alcoa's Reportable Segments | The operating results, capital expenditures, and assets of Alcoa Corporation’s reportable segments were as follows: Bauxite Alumina Aluminum Total 2019 Sales: Third-party sales $ 297 $ 3,250 $ 6,803 $ 10,350 Intersegment sales 979 1,561 17 2,557 Total sales $ 1,276 $ 4,811 $ 6,820 $ 12,907 Segment Adjusted EBITDA $ 504 $ 1,097 $ 25 $ 1,626 Supplemental information: Depreciation, depletion, and amortization $ 120 $ 214 $ 346 $ 680 Equity income (loss) — 6 (49 ) (43 ) 2018 Sales: Third-party sales $ 271 $ 4,215 $ 8,829 $ 13,315 Intersegment sales 944 2,101 18 3,063 Total sales $ 1,215 $ 6,316 $ 8,847 $ 16,378 Segment Adjusted EBITDA $ 426 $ 2,373 $ 451 $ 3,250 Supplemental information: Depreciation, depletion, and amortization $ 111 $ 197 $ 394 $ 702 Equity income (loss) — 32 (38 ) (6 ) 2017 Sales: Third-party sales $ 333 $ 3,133 $ 8,027 $ 11,493 Intersegment sales 875 1,723 21 2,619 Total sales $ 1,208 $ 4,856 $ 8,048 $ 14,112 Segment Adjusted EBITDA $ 424 $ 1,289 $ 1,026 $ 2,739 Supplemental information: Depreciation, depletion, and amortization $ 82 $ 207 $ 419 $ 708 Equity loss — (5 ) (19 ) (24 ) 2019 Assets: Capital expenditures $ 53 $ 137 $ 152 $ 342 Equity investments 212 293 587 1,092 Total assets 1,434 4,303 6,588 12,325 2018 Assets: Capital expenditures $ 47 $ 194 $ 125 $ 366 Equity investments 189 290 856 1,335 Total assets 1,448 4,643 7,715 13,806 |
Schedule of Reconciliation of Certain Segment Information to Consolidated Totals | The following tables reconcile certain segment information to consolidated totals: 2019 2018 2017 Sales: Total segment sales $ 12,907 $ 16,378 $ 14,112 Elimination of intersegment sales (2,557 ) (3,063 ) (2,619 ) Other 83 88 159 Consolidated sales $ 10,433 $ 13,403 $ 11,652 |
Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alcoa Corporation | 2019 2018 2017 Net (loss) income attributable to Alcoa Corporation: Total Segment Adjusted EBITDA (1) $ 1,626 $ 3,250 $ 2,739 Unallocated amounts: Transformation (2) (7 ) (3 ) (49 ) Intersegment eliminations (1),(3) 150 (8 ) (80 ) Corporate expenses (4) (101 ) (96 ) (131 ) Provision for depreciation, depletion, and amortization (713 ) (733 ) (750 ) Restructuring and other charges, net (D) (1,031 ) (527 ) (309 ) Interest expense (T) (121 ) (122 ) (104 ) Other expenses, net (T) (162 ) (64 ) (27 ) Other (5) (79 ) (72 ) (89 ) Consolidated (loss) income before income taxes (438 ) 1,625 1,200 Provision for income taxes (P) (415 ) (732 ) (592 ) Net income attributable to noncontrolling interest (272 ) (643 ) (329 ) Consolidated net (loss) income attributable to Alcoa Corporation $ (1,125 ) $ 250 $ 279 (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. See Note I. As a result, for the years ended December 31, 2018 and 2017, Total segment Adjusted EBITDA increased $47 and $14, respectively, and the Intersegment eliminations value above decreased $19 and increased $27, respectively. (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 Segment Reporting Information to Consolidated Assets | December 31, 2019 2018 Assets: Total segment assets $ 12,325 $ 13,806 Elimination of intersegment receivables (170 ) (271 ) Unallocated amounts: Cash and cash equivalents 879 1,113 Corporate fixed assets, net 519 520 Corporate goodwill 145 146 Deferred income taxes 642 560 Other 291 258 Consolidated assets $ 14,631 $ 16,132 |
Schedule of Product Division Information | The following table represents the general commercial profile of the Company’s Bauxite, Alumina, Primary aluminum, and Flat-rolled aluminum product divisions (see text below table for Energy): Product division Pricing components Shipping terms (4) Payment terms (5) Bauxite Negotiated FOB/CIF LC Sight Alumina: Smelter-grade API (1) FOB LC Sight/CAD/Net 30 days Non-metallurgical Negotiated FOB/CIF Net 30 days Primary aluminum: Common alloy ingot LME + Regional premium (2) DAP/CIF Net 10 to 45 days Value-add ingot LME + Regional premium + Product premium (2) DAP/CIF Net 30 to 45 days Flat-rolled aluminum Metal + Conversion (3) DAP Negotiated ( 1) API (Alumina Price Index) is a pricing mechanism that is calculated by the Company based on the weighted average of a prior month’s daily spot prices published by the following three indices: CRU Metallurgical Grade Alumina Price; Platts Metals Daily Alumina PAX Price; and Metal Bulletin Non-Ferrous Metals Alumina Index (2) LME (London Metal Exchange) is a globally recognized exchange for commodity trading, including aluminum. The LME pricing component represents the underlying base metal component, based on quoted prices for aluminum on the exchange. The regional premium represents the incremental price over the base LME component that is associated with the physical delivery of metal to a particular region (e.g., the Midwest premium for metal sold in the United States). The product premium represents the incremental price for receiving physical metal in a particular shape (e.g., billet, rod, slab, etc.) or alloy (3) M etal represents the underlying base metal component plus a regional premium (see footnote 2). Conversion represents the incremental price over the metal price component that is associated with converting primary or scrap aluminum into sheet (4) CIF (cost, insurance, and freight) means that the Company pays for these items until the product reaches the buyer’s designated destination point related to transportation by vessel. DAP (delivered at place) means the same as CIF related to all methods of transportation. FOB (free on board) means that the Company pays for costs, insurance, and freight until the product reaches the seller’s designated shipping point. (5) The net number of days means that the customer is required to remit payment to the Company for the invoice amount within the designated number of days. LC Sight is a letter of credit that is payable immediately (usually within five to ten business days) after a seller meets the requirements of the letter of credit (i.e. shipping documents that evidence the seller performed its obligations as agreed to with a buyer). CAD (cash against documents) is a payment arrangement in which a seller instructs a bank to provide shipping and title documents to the buyer at the time the buyer pays in full the accompanying bill of exchange. |
Schedule of Third-party Sales by Product Division | The following table details Alcoa Corporation’s Third-party sales by product division: 2019 2018 2017 Sales: Primary aluminum $ 5,426 $ 6,787 $ 6,168 Alumina 3,246 4,209 3,121 Flat-rolled aluminum 1,220 1,884 1,666 Energy 290 335 446 Bauxite 276 254 333 Other (25 ) (66 ) (82 ) $ 10,433 $ 13,403 $ 11,652 |
Schedule of Geographic Information for Third-party Sales | Geographic information for Third-party sales was as follows (based upon the country where the point of sale originated): 2019 2018 2017 Sales: United States (1) $ 4,606 $ 5,887 $ 5,313 Spain (2) 3,077 3,806 3,303 Australia 2,249 2,930 2,266 Brazil 428 498 569 Canada 5 216 150 Other 68 66 51 $ 10,433 $ 13,403 $ 11,652 (1) Sales of a portion of the alumina from refineries in Australia and Brazil and most of the aluminum from smelters in Canada occurred in the United States. (2) Sales of the aluminum produced from smelters in Iceland and Norway, as well as the off-take related to an interest in the Saudi Arabia joint venture (see Note H), occurred in Spain. |
Schedule of Geographic Information for Long-Lived Assets | Geographic information for long-lived assets was as follows (based upon the physical location of the assets): December 31, 2019 2018 Long-lived assets: Australia $ 2,044 $ 2,002 Brazil 1,596 1,729 United States 1,491 1,599 Iceland 1,160 1,216 Canada 1,047 1,064 Norway 365 381 Spain 209 321 Other 4 15 $ 7,916 $ 8,327 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders | The share information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (in millions): 2019 2018 2017 Average shares outstanding—basic 185 186 184 Effect of dilutive securities: Stock options — 1 1 Stock units — 2 2 Average shares outstanding—diluted 185 189 187 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component | The following table details the activity of the three components that comprise Accumulated other comprehensive loss for both Alcoa Corporation’s shareholders and noncontrolling interest: Alcoa Corporation Noncontrolling interest 2019 2018 2017 2019 2018 2017 Pension and other postretirement benefits (N) Balance at beginning of period $ (2,283 ) $ (2,786 ) $ (2,330 ) $ (46 ) $ (47 ) $ (56 ) Other comprehensive (loss) income: Unrecognized net actuarial loss and prior service cost/benefit (309 ) 19 (671 ) (14 ) (3 ) 9 Tax benefit (expense) 28 (8 ) 25 — — (2 ) Total Other comprehensive (loss) income before reclassifications, net of tax (281 ) 11 (646 ) (14 ) (3 ) 7 Amortization of net actuarial loss and prior service cost/benefit (1) 299 546 199 5 4 2 Tax expense (2) (17 ) (54 ) (9 ) (1 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 282 492 190 4 4 2 Total Other comprehensive (loss) income 1 503 (456 ) (10 ) 1 9 Balance at end of period $ (2,282 ) $ (2,283 ) $ (2,786 ) $ (56 ) $ (46 ) $ (47 ) Foreign currency translation Balance at beginning of period $ (2,071 ) $ (1,467 ) $ (1,655 ) $ (810 ) $ (581 ) $ (677 ) Other comprehensive (loss) income (3) (89 ) (604 ) 188 (24 ) (229 ) 96 Balance at end of period $ (2,160 ) $ (2,071 ) $ (1,467 ) $ (834 ) $ (810 ) $ (581 ) Cash flow hedges (O) Balance at beginning of period $ (211 ) $ (929 ) $ 210 $ 31 $ 51 $ 1 Other comprehensive (loss) income: Net change from periodic revaluations (437 ) 803 (1,489 ) 20 (4 ) 83 Tax benefit (expense) 83 (159 ) 251 (6 ) 1 (25 ) Total Other comprehensive (loss) income before reclassifications, net of tax (354 ) 644 (1,238 ) 14 (3 ) 58 Net amount reclassified to earnings: Aluminum contracts (4) 44 108 130 — — — Financial contracts (5) (43 ) (37 ) (19 ) (35 ) (24 ) (12 ) Foreign exchange contracts (4) 18 6 (2 ) — — — Interest rate contract (6) 4 — — — — — Sub-total 23 77 109 (35 ) (24 ) (12 ) Tax benefit (expense) (2) 10 (3 ) (10 ) 10 7 4 Total amount reclassified from Accumulated other comprehensive loss, net of tax (7) 33 74 99 (25 ) (17 ) (8 ) Total Other comprehensive (loss) income (321 ) 718 (1,139 ) (11 ) (20 ) 50 Balance at end of period $ (532 ) $ (211 ) $ (929 ) $ 20 $ 31 $ 51 Total Accumulated other comprehensive loss $ (4,974 ) $ (4,565 ) $ (5,182 ) $ (870 ) $ (825 ) $ (577 ) (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits. For 2019, the amounts for Alcoa Corporation include $116, and for Noncontrolling interest include $3 related to settlements and/or curtailments of certain pension and other postretirement benefits. For 2018, the amounts for Alcoa Corporation include $330, (net) and for Noncontrolling interest include $1 related to settlements and/or curtailments of certain pension and other postretirement benefits (see Note N). (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) These amounts were included in Other expenses, net on the accompanying Statement of Consolidated Operations. (7) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Investment | December 31, 2019 2018 Equity investments $ 1,103 $ 1,350 Other investments 10 10 $ 1,113 $ 1,360 |
Schedule of Equity Investment | The following table summarizes information of Alcoa Corporation’s equity investments as of December 31, 2019 and 2018. Investee Country Nature of investment Ownership interest Ma’aden Aluminum Company Saudi Arabia Aluminum smelter and casthouse 25.1% Ma’aden Bauxite and Alumina Company Saudi Arabia Bauxite mine and alumina refinery 25.1% Halco Mining, Inc. Guinea Bauxite mine 45% Energética Barra Grande S.A. Brazil Hydroelectric generation facility 42.18% Pechiney Reynolds Quebec, Inc. Canada Aluminum smelter 50% Consorcio Serra do Facão Brazil Hydroelectric generation facility 34.97% Mineração Rio do Norte S.A. Brazil Bauxite mine 18.2% Manicouagan Power Limited Partnership Canada Hydroelectric generation facility 40% Elysis TM Canada Aluminum smelting technology 48.235% The following table summarizes the profit and loss data for the respective periods ended December 31, as it relates to Alcoa Corporation’s equity investments. For 2019, the information shown for the Saudi Arabia Joint Venture includes the full period for both MAC and MBAC, and the data for MRC through the divestiture date. The investments are grouped based on the nature of the investment. The M ining investments are part of the Bauxite segment, while the E nergy and O ther investments are parimarily part of the Aluminum segment. Saudi Arabia Joint Venture Mining Energy Other 2019 Sales $ 3,185 $ 846 $ 269 $ 159 Cost of goods sold 2,722 580 143 151 Net (loss) income (198 ) 35 107 (28 ) Equity in net (loss) income of affiliated companies, before reconciling adjustments (50 ) 16 42 (13 ) Other 3 5 1 16 Alcoa Corporation’s equity in net (loss) income of affiliated companies (47 ) 21 43 3 2018 Sales $ 3,986 $ 802 $ 283 $ 120 Cost of goods sold 3,334 522 146 110 Net income 9 71 114 16 Equity in net income of affiliated companies, before reconciling adjustments 2 23 46 8 Other (13 ) (10 ) (4 ) (1 ) Alcoa Corporation’s equity in net (loss) income of affiliated companies (11 ) 13 42 7 2017 Sales $ 3,032 $ 766 $ 339 $ 332 Cost of goods sold 2,776 539 174 292 Net (loss) income (157 ) 77 139 23 Equity in net (loss) income of affiliated companies, before reconciling adjustments (39 ) 27 53 11 Other 9 (1 ) 2 — Alcoa Corporation’s equity in net (loss) income of affiliated companies (30 ) 26 55 11 The following table summarizes the balance sheet data for Alcoa Corporation’s equity investments. The information shown for the Saudi Arabia Joint Venture for 2019 only includes the combined balances for MAC and MBAC. Saudi Arabia Joint Venture Mining Energy Other 2019 Current assets $ 1,109 $ 191 $ 106 $ 181 Noncurrent assets 7,931 923 509 761 Current liabilities 677 156 41 59 Noncurrent liabilities 5,587 511 87 42 2018 Current assets $ 1,684 $ 185 $ 84 $ 139 Noncurrent assets 9,115 817 542 97 Current liabilities 1,379 126 36 49 Noncurrent liabilities 6,101 439 101 4 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Inventory Components | December 31, 2019 2018 Finished goods $ 305 $ 346 Work-in-process 282 189 Bauxite and alumina 446 609 Purchased raw materials 453 529 Operating supplies 158 146 $ 1,644 $ 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 (deficit) earnings of $143 and an unfavorable adjustment to Noncontrolling interest of $22 as of January 1, 2017. 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 years ended December 31, 2018 and 2017 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 year ended December 31, 2018: Cost of goods sold $ 10,081 $ (28 ) $ 10,053 Provision for income taxes 726 6 732 Net income 871 22 893 Net income attributable to noncontrolling interest 644 (1 ) 643 Net income attributable to Alcoa Corporation 227 23 250 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 1.22 $ 0.12 $ 1.34 Diluted 1.20 0.13 1.33 Statement of Consolidated Comprehensive Income for the year ended December 31, 2018: Comprehensive income $ 1,240 $ 22 $ 1,262 Comprehensive income attributable to noncontrolling interest 396 (1 ) 395 Comprehensive income attributable to Alcoa Corporation 844 23 867 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 year ended December 31, 2018: Net income $ 871 $ 22 $ 893 Deferred income taxes (36 ) 6 (30 ) (Increase) in inventories (278 ) (28 ) (306 ) Statement of Consolidated Operations for the year ended December 31, 2017: Cost of goods sold $ 8,991 $ (41 ) $ 8,950 Provision for income taxes 600 (8 ) 592 Net income 559 49 608 Net income attributable to noncontrolling interest 342 (13 ) 329 Net income attributable to Alcoa Corporation 217 62 279 Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ 1.18 $ 0.33 $ 1.51 Diluted 1.16 0.33 1.49 Statement of Consolidated Comprehensive Income for the year ended December 31, 2017: Comprehensive loss $ (693 ) $ 49 $ (644 ) Comprehensive income attributable to noncontrolling interest 497 (13 ) 484 Comprehensive loss attributable to Alcoa Corporation (1,190 ) 62 (1,128 ) Statement of Consolidated Cash Flows for the year ended December 31, 2017: Net income $ 559 $ 49 $ 608 Deferred income taxes 176 (8 ) 168 (Increase) in inventories (238 ) (41 ) (279 ) 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 December 31, 2019 and for the year then ended: As Computed under LIFO As Reported under Average Cost Effect of Change Statement of Consolidated Operations for the year ended December 31, 2019: Cost of goods sold $ 8,528 $ 8,537 $ 9 Provision for income taxes 400 415 15 Net loss (829 ) (853 ) (24 ) Net income attributable to noncontrolling interest 246 272 26 Net loss attributable to Alcoa Corporation (1,075 ) (1,125 ) (50 ) Earnings per share attributable to Alcoa Corporation common shareholders: Basic $ (5.80 ) $ (6.07 ) $ (0.27 ) Diluted (5.80 ) (6.07 ) (0.27 ) Statement of Consolidated Comprehensive Income for the year ended December 31, 2019: Comprehensive loss $ (1,283 ) $ (1,307 ) $ (24 ) Comprehensive income attributable to noncontrolling interest 201 227 26 Comprehensive loss attributable to Alcoa Corporation (1,484 ) (1,534 ) (50 ) Consolidated Balance Sheet as of December 31, 2019: Inventories $ 1,478 $ 1,644 $ 166 Prepaid expenses and other current assets 284 288 4 Retained deficit (734 ) (555 ) 179 Noncontrolling interest 1,783 1,774 (9 ) Statement of Consolidated Cash Flows for the year ended December 31, 2019: Net loss $ (829 ) $ (853 ) $ (24 ) Deferred income taxes — 15 15 Decrease in inventories 128 137 9 |
Properties, Plants, and Equip_2
Properties, Plants, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Properties, Plants, and Equipment, Net | December 31, 2019 2018 Land and land rights, including mines $ 333 $ 328 Structures (by type of operation): Bauxite mining 1,138 1,119 Alumina refining 2,415 2,478 Aluminum smelting and casting 3,457 3,532 Energy generation 440 506 Aluminum rolling 290 285 Other 386 380 8,126 8,300 Machinery and equipment (by type of operation): Bauxite mining 499 480 Alumina refining 3,956 3,604 Aluminum smelting and casting 6,251 6,489 Energy generation 879 889 Aluminum rolling 1,057 1,029 Other 293 282 12,935 12,773 21,394 21,401 Less: accumulated depreciation, depletion, and amortization 13,799 13,480 7,595 7,921 Construction work-in-progress 321 406 $ 7,916 $ 8,327 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill which is Included in Other Noncurrent Assets | Goodwill, which is included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, was as follows: December 31, 2019 2018 Bauxite $ 2 $ 2 Alumina 3 3 Aluminum — — Corporate (1) 145 146 $ 150 $ 151 (1) The carrying value of Corporate’s goodwill is net of accumulated impairment losses of $742 as of both December 31, 2019 and 2018. As of December 31, 2019, the $145 of goodwill reflected in Corporate is allocated to two of Alcoa Corporation’s three reportable segments ($48 to Bauxite and $97 to Alumina) for purposes of impairment testing (see Note B). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the two reportable segments. |
Other Intangible Assets | Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows: 2019 2018 December 31, Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Computer software $ 240 $ (216 ) $ 24 $ 237 $ (211 ) $ 26 Patents and licenses 25 (8 ) 17 25 (7 ) 18 Other intangibles 22 (11 ) 11 19 (6 ) 13 Total other intangible assets $ 287 $ (235 ) $ 52 $ 281 $ (224 ) $ 57 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-Term Debt. December 31, 2019 2018 6.75% Notes, due 2024 $ 750 $ 750 7.00% Notes, due 2026 500 500 6.125% Notes, due 2028 500 500 Other 84 91 Unamortized discounts and deferred financing costs (34 ) (39 ) Total 1,800 1,802 Less: amount due within one year 1 1 Long-term debt, less amount due within one year $ 1,799 $ 1,801 |
Preferred and Common Stock (Tab
Preferred and Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Activity for Stock Options and Stock Units | The activity for stock options and stock units during 2019 was as follows: Stock options Stock units Number of options Weighted average exercise price Number of units Weighted average FMV per unit Outstanding, January 1, 2019 1,959,927 $ 28.41 2,305,145 $ 32.75 Granted 519,900 28.01 1,145,099 27.87 Exercised (96,712 ) 18.05 — — Converted — — (924,826 ) 15.22 Expired or forfeited (136,552 ) 34.81 (216,309 ) 35.68 Performance share adjustment — — (181,498 ) 39.62 Outstanding, December 31, 2019 2,246,563 28.38 2,127,611 36.85 The number of Converted units includes 209,550 shares “withheld” to meet the Company’s statutory tax withholding requirements related to the income earned by the employees as a result of vesting in the units. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Information in Curtailment or Settlement of Benefits Requiring Remeasurement, Update to Discount Rates Used to Determine Benefit Obligations of Affected Plans | The following table presents certain information and the financial impacts of these actions on the accompanying Consolidated Financial Statements: Action # Number of 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 (decrease) to accrued pension benefits liability (1) Decrease to accrued other postretirement benefits liability Curtailment charge (2) Settlement charge (2) 1 ~700 3.85% May 31, 2019 3.15% $ 52 $ — $ 38 $ — 2 ~900 3.80% June 30, 2019 3.00% 23 — — — 3 ~1,700 N/A December 31, 2019 N/A (26 ) — — 66 4 ~6,000 N/A December 31, 2019 N/A — (108 ) — — 5 ~8,900 N/A December 31, 2019 N/A — (56 ) — 8 ~18,200 $ 49 $ (164 ) $ 38 $ 74 (1) Actions 1 and 2 caused interim plan remeasurements, including an update to the discount rates used to determine the benefit obligations of the affected plans. These amounts include the impacts due to the interim plan remeasurements. (2) These amounts represent the accelerated amortization of a portion of the existing prior service cost for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net (See Note D) on the accompanying Statement of Consolidated Operations. Action # Number of affected plan participants Weighted average discount rate as of December 31, 2017 Plan remeasurement date Weighted average discount rate as of plan remeasurement date (Decrease) increase to accrued pension benefits liability Decrease to accrued other postretirement benefits liability Curtailment charge (gain) (1) Settlement charge (1) 1 ~800 3.65% January 31, 2018 3.80% $ (57 ) $ — $ 5 $ — 2 ~700 3.29% January 31, 2018 3.43% — (7 ) (28 ) — 3 ~2,100 3.43% March 31, 2018 3.60% 24 — — 167 4 ~11,500 3.70% July 31, 2018 4.39% (110 ) — — 230 5 ~5,500 3.61% July 31, 2018 4.35% — (86 ) — (56 ) ~20,600 $ (143 ) $ (93 ) $ (23 ) $ 341 (1) These amounts represent the accelerated amortization of a portion of the existing prior service cost or benefit for curtailments and net actuarial loss for settlements and were reclassified from Accumulated other comprehensive loss to Restructuring and other charges. Net (see Note D) on the accompanying Statement of Consolidated Operations. |
Schedule of Obligations and Funded Status | Obligations and Funded Status Pension benefits Other postretirement benefits December 31, 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 5,997 $ 7,639 $ 973 $ 1,218 Service cost 49 60 4 5 Interest cost 226 232 36 34 Amendments 26 — (150 ) (5 ) Actuarial losses (gains) 746 (346 ) 103 (88 ) Settlements (177 ) (1,009 ) (14 ) (57 ) Curtailments — (22 ) — — Benefits paid, net of participants’ contributions (379 ) (407 ) (111 ) (140 ) Medicare Part D subsidy receipts — — 7 7 Foreign currency translation impact 44 (150 ) — (1 ) Benefit obligation at end of year $ 6,532 $ 5,997 $ 848 $ 973 Change in plan assets Fair value of plan assets at beginning of year $ 4,610 $ 5,322 $ — $ — Actual return on plan assets 763 (129 ) — — Employer contributions 175 996 — — Participant contributions 11 12 — — Benefits paid (379 ) (403 ) — — Administrative expenses (19 ) (31 ) — — Settlements (177 ) (1,030 ) — — Foreign currency translation impact 31 (127 ) — — Fair value of plan assets at end of year $ 5,015 $ 4,610 $ — $ — Funded status $ (1,517 ) $ (1,387 ) $ (848 ) $ (973 ) Less: Amounts attributed to joint venture partners (34 ) (33 ) — — Net funded status $ (1,483 ) $ (1,354 ) $ (848 ) $ (973 ) Amounts recognized in the Consolidated Balance Sheet consist of: Noncurrent assets $ 33 $ 63 $ — $ — Current liabilities (11 ) (10 ) (99 ) (105 ) Noncurrent liabilities (1,505 ) (1,407 ) (749 ) (868 ) Net amount recognized $ (1,483 ) $ (1,354 ) $ (848 ) $ (973 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss $ 3,364 $ 3,261 $ 261 $ 176 Prior service cost (benefit) 5 21 (154 ) (4 ) Total, before tax effect 3,369 3,282 107 172 Less: Amounts attributed to joint venture partners 42 40 — — Net amount recognized, before tax effect $ 3,327 $ 3,242 $ 107 $ 172 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) consist of: Net actuarial loss (benefit) $ 350 $ 132 $ 103 $ (88 ) Amortization of accumulated net actuarial loss (247 ) (614 ) (18 ) (17 ) Prior service cost (benefit) 26 (1 ) (150 ) (62 ) Amortization of prior service (cost) benefit (42 ) (13 ) — 88 Total, before tax effect 87 (496 ) (65 ) (79 ) Less: Amounts attributed to joint venture partners 2 (5 ) — — Net amount recognized, before tax effect $ 85 $ (491 ) $ (65 ) $ (79 ) |
Schedule of Pension Plan Benefit Obligations | Pension Plan Benefit Obligations Pension benefits 2019 2018 The aggregate projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows: Projected benefit obligation $ 6,532 $ 5,997 Accumulated benefit obligation 6,324 5,792 The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets was as follows: Projected benefit obligation 6,014 5,502 Fair value of plan assets 4,463 4,051 The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets was as follows: Accumulated benefit obligation 5,873 5,380 Fair value of plan assets 4,463 4,051 |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Pension benefits (1) Other postretirement benefits (2) 2019 2018 2017 2019 2018 2017 Service cost $ 48 $ 54 $ 71 $ 4 $ 5 $ 5 Interest cost (3) 221 227 244 36 34 38 Expected return on plan assets (3) (325 ) (341 ) (398 ) — — — Recognized net actuarial loss (3) 171 198 185 10 13 13 Amortization of prior service cost (benefit) (3) 4 8 9 — — (6 ) Settlements (4) 73 410 5 8 (56 ) — Curtailments (5) 38 5 — — (28 ) — Special termination benefits (6) — — 3 — — — Net periodic benefit cost (7) $ 230 $ 561 $ 119 $ 58 $ (32 ) $ 50 (1) In 2019, 2018, and 2017, net periodic benefit cost for U.S pension plans was $155, $358, and $74, respectively. (2) In 2019, 2018, and 2017, net periodic benefit cost for other postretirement benefits reflects a reduction of $7, $8 and $8, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D. (3) These amounts were reported in Other expenses, net on the accompanying Statement of Consolidated Operations. (4) These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations (see Note D). In 2019, settlements were due to management actions (see Plan Actions above) ($74) and payment of additional lump sum benefits ($7). In 2018, settlements were due to management actions (see Plan Actions above) ($341) and payment of lump sum benefits ($13). In 2017, settlements were due to payment of lump sum benefits. (5) These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations (see Note D). In 2019 and 2018, curtailments were due to management actions (see Plan Actions above). (6) These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations (see Note D). In 2017, special termination benefits were due to workforce reductions. (7) Amounts attributed to joint venture partners are not included. |
Schedule of Amounts Expected to be Recognized in Net Periodic Benefit Cost | Amounts Expected to be Recognized in Net Periodic Benefit Cost Pension benefits Other postretirement benefits 2020 2020 Net actuarial loss recognition $ 202 $ 17 Prior service cost recognition 1 (14 ) |
Schedule of Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (non-U.S. plans are not material): 2019 2018 2017 Health care cost trend rate assumed for next year 5.5 % 5.5 % 5.5 % Rate to which the cost trend rate gradually declines 4.5 % 4.5 % 4.5 % Year that the rate reaches the rate at which it is assumed to remain 2023 2022 2021 |
Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations | Plan Assets. Alcoa’s pension plan investment policy and weighted average asset allocations at December 31, 2019 and 2018, by asset class, were as follows: Plan assets at December 31, Asset class Policy range 2019 2018 Equities 10–60% 40 % 36 % Fixed income 10–65% 49 51 Other investments 0–35% 11 13 Total 100 % 100 % |
Schedule of Fair Value of Pension Plan Assets | The following table presents the fair value of pension plan assets classified under either the appropriate level of the fair value hierarchy or net asset value: December 31, 2019 Level 1 Level 2 Net Asset Value Total Equities: Equity securities $ 612 $ — $ 1,213 $ 1,825 Long/short equity hedge funds — — 8 8 Private equity — — 177 177 $ 612 $ — $ 1,398 $ 2,010 Fixed income: Intermediate and long duration government/credit $ 889 $ 700 $ 560 $ 2,149 Cash and cash equivalent funds 23 — 293 316 Other — 5 — 5 $ 912 $ 705 $ 853 $ 2,470 Other investments: Real estate $ 208 $ — $ 287 $ 495 Other — — 32 32 $ 208 $ — $ 319 $ 527 Total (1) $ 1,732 $ 705 $ 2,570 $ 5,007 December 31, 2018 Level 1 Level 2 Net Asset Value Total Equities: Equity securities $ 662 $ — $ 813 $ 1,475 Long/short equity hedge funds — — 6 6 Private equity — — 186 186 $ 662 $ — $ 1,005 $ 1,667 Fixed income: Intermediate and long duration government/credit $ 925 $ 697 $ 327 $ 1,949 Cash and cash equivalent funds 56 — 325 381 Other — 14 — 14 $ 981 $ 711 $ 652 $ 2,344 Other investments: Real estate $ 230 $ — $ 318 $ 548 Other — — 32 32 $ 230 $ — $ 350 $ 580 Total (2) $ 1,873 $ 711 $ 2,007 $ 4,591 (1) As of December 31, 2019, the total fair value of pension plan assets excludes a net receivable of $8, which represents securities not yet settled plus interest and dividends earned on various investments. (2) As of December 31, 2018, the total fair value of pension plan assets excludes a net receivable of $19, which represents securities not yet settled plus interest and dividends earned on various investments. |
Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts | Benefit payments expected to be paid to pension and other postretirement benefit plan participants and expected Medicare Part D subsidy receipts are as follows: Year ended December 31, Pension benefits Gross Other postretirement benefits Medicare Part D subsidy receipts Net Other postretirement benefits 2020 $ 435 $ 105 $ 5 $ 100 2021 435 95 5 90 2022 430 90 5 85 2023 430 90 5 85 2024 425 70 5 65 2025 through 2029 2,020 255 15 240 $ 4,175 $ 705 $ 40 $ 665 |
Benefit Obligation [Member] | |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Assumptions. Weighted average assumptions used to determine benefit obligations for pension and other postretirement benefit plans were as follows: December 31, 2019 2018 Discount rate—pension plans 3.12 % 4.21 % Discount rate—other postretirement benefit plans 3.12 4.25 Rate of compensation increase—pension plans 3.25 3.26 |
Net Periodic Benefit Cost [Member] | |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Weighted average assumptions used to determine net periodic benefit cost for pension and other postretirement benefit plans were as follows: 2019 2018 2017 Discount rate—pension plans 3.89 % 3.59 % 3.61 % Discount rate—other postretirement benefit plans 3.94 3.18 3.30 Expected long-term rate of return on plan assets—pension plans 6.59 6.89 7.47 Rate of compensation increase—pension plans 3.26 3.28 3.61 |
Derivatives and Other Financi_2
Derivatives and Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Detail for Level 1, 2 and 3 Derivatives | The following tables present the detail for Level 1, 2 and 3 derivatives (see additional Level 3 information in further tables below): 2019 2018 Balance at December 31, Assets Liabilities Assets Liabilities Level 1 and 2 derivative instruments $ 3 $ 33 $ 2 $ 54 Level 3 derivative instruments 74 615 153 289 Total $ 77 $ 648 $ 155 $ 343 Less: Current 59 67 73 82 Noncurrent $ 18 $ 581 $ 82 $ 261 Unrealized loss recognized in Other comprehensive (loss) income Realized gain (loss) reclassed from Other comprehensive (loss) income to earnings Year ended December 31, 2019 2018 2019 2018 Level 1 and 2 derivative instruments $ (14 ) $ 24 $ (26 ) $ (14 ) Level 3 derivative instruments (385 ) 774 42 (38 ) Noncontrolling and equity interest (38 ) 5 (38 ) (25 ) Total $ (437 ) $ 803 $ (22 ) $ (77 ) |
Schedule of Fair Values of Level 3 Derivative Instruments Outstanding | Level 3 derivative instruments outstanding as of December 31, 2019 are described in the table below: Description Designation Contract Termination Unobservable Inputs Impacting Valuation Sensitivity to Inputs Power contracts Embedded derivative that indexes price of power to the LME price of aluminum plus the Midwest premium Cash flow hedge of forward sales of aluminum March 2026 December 2029 February 2036 LME price, Midwest premium and MWh per year Increase in LME price and/or the Midwest premium results in a higher cost of power and a decrease to the derivative asset or increase to the derivative liability Embedded derivative that indexes price of power to the LME price of aluminum Cash flow hedge of forward sales of aluminum September 2027 December 2019 LME price and MWh per year Increase in LME price results in a higher cost of power and an increase to the derivative liability Embedded derivative that indexes the price of power to the credit spread between the Company and the counterparty Not designated October 2028 Estimated credit spread Wider credit spread results in a higher cost of power and increase in the derivative liability Financial contract Hedge power prices Cash flow hedge of future purchases of electricity July 2021 Power price Lower power prices result in a lower derivative asset |
Schedule of Quantitative Information for Level 3 Derivative Contracts | The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments (megawatt hours in MWh): December 31, 2019 Unobservable Input Unobservable Input Range Asset Derivatives Financial contract $ 74 Interrelationship of Electricity (per MWh) 2020: $62.66 forward energy price and the Consumer Price Index 2021: $51.59 Total Asset Derivatives $ 74 Liability Derivatives Power contract $ 225 MWh of energy needed LME (per mt) 2020: $1,789 to produce the forecasted 2027: $2,340 mt of aluminum Electricity Rate of 4 million MWh per year Power contracts 373 MWh of energy needed to produce the forecasted mt of aluminum LME (per mt) 2020: $1,789 2029: $2,448 2036: $2,746 Midwest premium (per pound) 2020: $0.1450 2029: $0.1625 2036: $0.1625 Electricity Rate of 11 million MWh per year Power contract 17 Estimated spread between the 30-year debt yield of Alcoa and the counterparty Credit spread 2.85%: 30-year debt yield spread 6.30%: Alcoa (estimated) 3.45%: counterparty Total Liability Derivatives $ 615 |
Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities | The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows: Asset Derivatives December 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Current—financial contract $ 57 $ 70 Noncurrent—power contract — 41 Noncurrent—financial contract 17 42 Total derivatives designated as hedging instruments $ 74 $ 153 Total Asset Derivatives $ 74 $ 153 Liability Derivatives Derivatives designated as hedging instruments: Current—power contracts $ 47 $ 46 Noncurrent—power contracts 551 218 Total derivatives designated as hedging instruments $ 598 $ 264 Derivatives not designated as hedging instruments: Current—power contract — $ 5 Current—embedded credit derivative 3 4 Noncurrent—embedded credit derivative 14 16 Total derivatives not designated as hedging instruments $ 17 $ 25 Total Liability Derivatives $ 615 $ 289 |
Schedule of Net Fair Values of Level 3 Derivative Instruments and Effect of Hypothetical Change (Increase or Decrease of 10%) in Market Prices or Rates | The following table shows the net fair values of the Level 3 derivative instruments at December 31, 2019 and the effect on these amounts of a hypothetical change (increase or decrease of 10%) in the market prices or rates that existed as of December 31, 2019: Fair value asset/(liability) Index change of + / -10% Power contracts $ (598 ) $ 356 Embedded credit derivative (17 ) 2 Financial contract 74 22 |
Schedule of Reconciliation of Activity for Derivative Contracts | The following tables present a reconciliation of activity for Level 3 derivative instruments: Assets Liabilities 2019 Power contract Financial contract Power contracts Embedded credit derivative January 1, 2019 $ 41 $ 112 $ 269 $ 20 Total gains or losses included in: Sales (realized) — — (44 ) — Cost of goods sold (realized) — (86 ) — — Other expenses, net (unrealized) — — (2 ) (2 ) Other comprehensive (loss) income (unrealized) (41 ) 52 396 — Other — (4 ) (21 ) (1 ) December 31, 2019 $ — $ 74 $ 598 $ 17 Change in unrealized gains or losses included in earnings for derivative instruments held at December 31, 2019: Other expenses, net $ — $ — $ 1 $ 1 Assets Liabilities 2018 Power contract Financial contract Power contracts Embedded credit derivative January 1, 2018 $ — $ 197 $ 1,146 $ 27 Total gains or losses included in: Sales (realized) — — (100 ) — Cost of goods sold (realized) — (62 ) — Other expenses, net (unrealized) — — (19 ) (6 ) Other comprehensive income (loss) (unrealized) 40 (11 ) (745 ) — Other 1 (12 ) (13 ) (1 ) December 31, 2018 $ 41 $ 112 $ 269 $ 20 Change in unrealized gains or losses included in earnings for derivative instruments held at December 31, 2018: Other expenses, net $ — $ — $ (1 ) $ (4 ) |
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: 2019 2018 December 31, Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 879 $ 879 $ 1,113 $ 1,113 Restricted cash 4 4 3 3 Long-term debt due within one year 1 1 1 1 Long-term debt, less amount due within one year 1,799 1,961 1,801 1,863 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Loss from Continuing Operations Before Income Taxes | The components of (Loss) income before income taxes were as follows: 2019 2018 2017 Domestic $ (1,000 ) $ (752 ) $ (686 ) Foreign 562 2,377 1,886 Total $ (438 ) $ 1,625 $ 1,200 |
Schedule of Provision for Income Taxes on Income from Continuing Operations | Provision for income taxes consisted of the following: 2019 2018 2017 Current: Federal $ (4 ) $ 5 $ 3 Foreign 404 757 421 State and local — — — 400 762 424 Deferred: Federal 2 (21 ) 25 Foreign 13 (9 ) 143 State and local — — — 15 (30 ) 168 Total $ 415 $ 732 $ 592 Federal includes U.S. income taxes related to foreign income. |
Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to Alcoa’s effective tax rate was as follows (the effective tax rate was a provision on loss in 2019 and a provision on income in 2018 and 2017): 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 35.0 % Changes in valuation allowances (65.3 ) 3.4 24.9 Non-deductible losses on foreign divestitures (22.6 ) — — Taxes on foreign operations—rate differential (19.3 ) 12.6 (10.4 ) Noncontrolling interest (6.8 ) 1.0 1.4 Global intangible low-taxed income — 9.9 — Other (1.9 ) (2.9 ) (1.6 ) Effective tax rate (94.9 )% 45.0 % 49.3 % |
Schedule of Components of Net Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities based on the underlying attributes without regard to jurisdiction were as follows: 2019 2018 December 31, Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Tax loss carryforwards $ 1,411 $ — $ 1,231 $ — Employee benefits 698 — 683 — Loss provisions 203 — 212 — Investment basis differences 164 — 162 — Depreciation 72 438 91 428 Derivatives and hedging activities 154 22 53 39 Tax credit carryforwards 26 — 27 — Deferred income/expense 11 134 10 103 Other 49 6 87 1 2,788 600 2,556 571 Valuation allowance (1,778 ) — (1,684 ) — Total $ 1,010 $ 600 $ 872 $ 571 |
Schedule of Expiration Periods of Deferred Tax Assets | The following table details the expiration periods of the deferred tax assets presented above: December 31, 2019 Expires within 10 years Expires within 11-20 years No expiration Other Total Tax loss carryforwards $ 333 $ 323 $ 755 $ — $ 1,411 Tax credit carryforwards 17 9 — — 26 Other — — 170 1,181 1,351 Valuation allowance (350 ) (318 ) (300 ) (810 ) (1,778 ) Total $ — $ 14 $ 625 $ 371 $ 1,010 Deferred tax assets with no expiration may still have annual limitations on utilization. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. |
Composition of Net Deferred Tax Asset by Jurisdiction | The total deferred tax asset (net of valuation allowance) is supported by projections of future taxable income exclusive of reversing temporary differences and taxable temporary differences that reverse within the carryforward period. The composition of Alcoa’s net deferred tax asset by jurisdiction as of December 31, 2019 was as follows: Domestic Foreign Total Deferred tax assets $ 1,054 $ 1,734 $ 2,788 Valuation allowance (898 ) (880 ) (1,778 ) Deferred tax liabilities (149 ) (451 ) (600 ) Total $ 7 $ 403 $ 410 |
Schedule of Changes in Valuation Allowance | Accordingly, management concluded that the net deferred tax assets of the Foreign Filers will more likely than not be realized in future periods, resulting in no need for a partial or full valuation allowance as of December 31, 2019. The following table details the changes in the valuation allowance: December 31, 2019 2018 2017 Balance at beginning of year $ (1,684 ) $ (1,927 ) $ (1,755 ) Establishment of new allowances (1) — (86 ) (94 ) Net change to existing allowances (2) (101 ) 312 (33 ) Foreign currency translation 7 17 (45 ) Balance at end of year $ (1,778 ) $ (1,684 ) $ (1,927 ) (1) This line item reflects valuation allowances initially established as a result of a change in management’s judgment regarding the realizability of deferred tax assets. (2) This line item reflects movements in previously established valuation allowances, which increase or decrease as the related deferred tax assets increase or decrease. Such movements occur as a result of remeasurement due to a tax rate change and changes in the underlying attributes of the deferred tax assets, including expiration of the attribute and reversal of the temporary difference that gave rise to the deferred tax asset. |
Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows: December 31, 2019 2018 2017 Balance at beginning of year $ 30 $ 10 $ 23 Additions for tax positions of the current year — 1 1 Additions for tax positions of prior years — 20 — Reductions for tax positions of prior years — — (5 ) Settlements with tax authorities — — (6 ) Expiration of the statute of limitations — — (3 ) Foreign currency translation (1 ) (1 ) — Balance at end of year $ 29 $ 30 $ 10 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Carrying Value of Recorded AROs by Major Category | The following table details the carrying value of recorded AROs by major category, of which $111 and $122 was classified as a current liability as of December 31, 2019 and 2018, respectively: December 31, 2019 2018 Mine reclamation $ 205 $ 198 Closure of bauxite residue areas 282 231 Spent pot lining disposal 106 113 Demolition 85 76 Landfill closure 39 33 Balance at end of year $ 717 $ 651 |
Schedule of Changes in Carrying Value of Recorded AROs | The following table details the changes in the total carrying value of recorded AROs: December 31, 2019 2018 Balance at beginning of year $ 651 $ 725 Accretion expense 22 17 Liabilities incurred 148 63 Payments (90 ) (80 ) Reversals of previously recorded liabilities (12 ) (37 ) Foreign currency translation and other (2 ) (37 ) Balance at end of year $ 717 $ 651 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Changes in Carrying Value of Recorded Environmental Remediation Reserves | The following table details the changes in the carrying value of recorded environmental remediation reserves: Balance at December 31, 2016 $ 324 Liabilities incurred 11 Cash payments (48 ) Reversals of previously recorded liabilities (10 ) Foreign currency translation and other 17 Balance at December 31, 2017 294 Liabilities incurred 19 Cash payments (25 ) Reversals of previously recorded liabilities (3 ) Foreign currency translation and other (5 ) Balance at December 31, 2018 280 Liabilities incurred 73 Cash payments (17 ) Reversals of previously recorded liabilities (1 ) Balance at December 31, 2019 $ 335 |
Schedule of Estimate Timing of Cash Outflows on Environmental Reserves | The estimated timing of cash outflows on the environmental remediation reserve at December 31, 2019 is as follows: 2020 $ 39 2021 – 2025 187 Thereafter 109 Total $ 335 |
Leasing (Tables)
Leasing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Aggregate Right-of Use Assets and Related Lease Obligations | The following represents the aggregate right-of use assets and related lease obligations as of December 31, 2019: Amounts recognized in the Consolidated Balance Sheet at December 31, 2019: Properties, plants and equipment, net $ 154 Other current liabilities 61 Other noncurrent liabilities and deferred credits 100 Total operating lease liabilities $ 161 |
Schedule of Weighted Average Lease Term and Weighted Average Discount Rate | The weighted average lease term and weighted average discount rate as of December 31, 2019 were as follows: Weighted average lease term Operating leases 4.6 years Weighted average discount rate Operating leases 5.4% |
Schedule of Future Cash Flows Related to Operating Lease Obligations | The future cash flows related to the operating lease obligations as of December 31, 2019 were as follows: Year Ending December 31, Operating leases 2020 $ 67 2021 51 2022 21 2023 12 2024 6 Thereafter 28 Total lease payments (undiscounted) 185 Less: discount to net present value (24 ) Total $ 161 |
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 |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Financial Information [Abstract] | |
Schedule of Interest Cost Components | Interest Cost Components 2019 2018 2017 Amount charged to expense $ 121 $ 122 $ 104 Amount capitalized 13 14 17 $ 134 $ 136 $ 121 |
Schedule of Other Expenses, Net | Other Expenses, Net 2019 2018 2017 Equity loss $ 49 $ 17 $ 28 Foreign currency losses (gains), net 16 (57 ) 8 Net gain from asset sales (3 ) — (116 ) Net (gain) loss on mark-to-market derivative instruments (O) (1 ) (25 ) 24 Non-service costs – 117 139 85 Other, net (16 ) (10 ) (2 ) $ 162 $ 64 $ 27 |
Schedule of Other Noncurrent Assets | Other Noncurrent Assets December 31, 2019 2018 Gas supply prepayment (R) $ 437 $ 458 Prepaid gas transmission contract 281 275 Value-added tax credits 179 210 Goodwill (K) 150 151 Deferred mining costs, net 124 123 Intangibles, net (K) 52 57 Prepaid pension benefit (N) 33 63 Other 156 138 $ 1,412 $ 1,475 |
Schedule of Other Noncurrent Liabilities and Deferred Credits | Other Noncurrent Liabilities and Deferred Credits December 31, 2019 2018 Accrued compensation and retirement costs $ 110 $ 107 Operating lease obligations (S) 100 — Deferred alumina sales revenue 52 61 Deferred energy credits 50 — Other 58 54 $ 370 $ 222 |
Schedule of Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash December 31, 2019 2018 Cash and cash equivalents $ 879 $ 1,113 Restricted cash 4 3 $ 883 $ 1,116 Restricted cash amounts are reported in Prepaid expenses and other current assets on the accompanying Consolidated Balance Sheet. |
Schedule of Cash Paid for Interest and Income Taxes | Cash Flow Information Cash paid for interest and income taxes was as follows: 2019 2018 2017 Interest, net of amount capitalized $ 113 $ 111 $ 100 Income taxes, net of amount refunded 732 507 363 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Millions | Nov. 01, 2016USD ($)$ / shares | Dec. 31, 2019CountryLocation$ / shares | Dec. 31, 2017USD ($)$ / shares |
Basis Of Presentation [Line Items] | |||
Number of countries in which entity operates | Country | 9 | ||
Cash payment related to separation transaction | $ | $ 1,072 | $ 247 | |
Proceeds from sale of assets | $ | $ 243 | ||
Common stock par value | $ / shares | $ 0.01 | ||
Aluminum Segment [Member] | |||
Basis Of Presentation [Line Items] | |||
Ownership interest in joint venture | 55.00% | ||
AWAC [Member] | Alumina Limited [Member] | |||
Basis Of Presentation [Line Items] | |||
Non-controlling interest, ownership percentage | 40.00% | ||
Parent Co | |||
Basis Of Presentation [Line Items] | |||
Common stock par value | $ / shares | $ 0.01 | $ 0.01 | |
Alcoa Corporation [Member] | |||
Basis Of Presentation [Line Items] | |||
Ownership interest in joint venture | 25.10% | ||
Alcoa Corporation [Member] | AWAC [Member] | |||
Basis Of Presentation [Line Items] | |||
Ownership interest percentage | 60.00% | ||
Minimum [Member] | |||
Basis Of Presentation [Line Items] | |||
Number of operating locations | Location | 30 | ||
Maximum [Member] | |||
Basis Of Presentation [Line Items] | |||
Percent of equity investments in other entity | 50.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)Reporting_Unit | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Original maturity of cash equivalents | three months | |
Segment Allocation, Goodwill Recognized | $ | $ 150 | $ 151 |
Weighted average yield curve duration discount rate | 11 years | |
Defined benefit plan, description of basis used to determine overall expected long-term rate-of-return on assets assumption | The expected long-term rate of return on plan assets is generally applied to a five-year market-related value of plan assets (a four-year average or the fair value at the plan measurement date is used for certain non-U.S. plans). | |
Maximum hedging contracts period, in years | 5 years | |
Alcoa Corporation [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of reporting units for goodwill allocation | 5 | |
Alcoa Corporation [Member] | Bauxite [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of reporting units for goodwill allocation | 1 | |
Segment Allocation, Goodwill Recognized | $ | $ 50 | |
Alcoa Corporation [Member] | Alumina [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of reporting units for goodwill allocation | 1 | |
Segment Allocation, Goodwill Recognized | $ | $ 100 | |
Alcoa Corporation [Member] | Aluminum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of reporting units for goodwill allocation | 3 | |
Minimum [Member] | Bauxite Mining [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Period of mining | 1 year | |
Maximum [Member] | Bauxite Mining [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Period of mining | 5 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Structures and Machinery and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Structures [Member] | Bauxite Mining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 35 years |
Structures [Member] | Alumina Refining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 28 years |
Structures [Member] | Aluminum Smelting and Casting [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 37 years |
Structures [Member] | Energy Generation [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 33 years |
Structures [Member] | Aluminum Rolling [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 31 years |
Machinery and Equipment [Member] | Bauxite Mining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 17 years |
Machinery and Equipment [Member] | Alumina Refining [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 29 years |
Machinery and Equipment [Member] | Aluminum Smelting and Casting [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 23 years |
Machinery and Equipment [Member] | Energy Generation [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 24 years |
Machinery and Equipment [Member] | Aluminum Rolling [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 21 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Software and Other Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Software [Member] | Bauxite Mining [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 3 years |
Software [Member] | Alumina Refining [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 7 years |
Software [Member] | Aluminum Smelting and Casting [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 3 years |
Software [Member] | Energy Generation [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 0 years |
Software [Member] | Aluminum Rolling [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 3 years |
Other Intangible Assets [Member] | Bauxite Mining [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 10 years |
Other Intangible Assets [Member] | Alumina Refining [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 21 years |
Other Intangible Assets [Member] | Aluminum Smelting and Casting [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 39 years |
Other Intangible Assets [Member] | Energy Generation [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 29 years |
Other Intangible Assets [Member] | Aluminum Rolling [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 20 years |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) | Jan. 31, 2020USD ($) | Nov. 01, 2016USD ($) | Jul. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Feb. 28, 2019USD ($) | Nov. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2009 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)HydroelectricPowerDevelopment |
Business Disposition [Line Items] | |||||||||||||
Restructuring and other charges | $ 1,031,000,000 | $ 527,000,000 | $ 309,000,000 | ||||||||||
Payments for restructuring | 118,000,000 | 102,000,000 | 73,000,000 | ||||||||||
Asset impairment | 225,000,000 | $ 18,000,000 | 40,000,000 | ||||||||||
Cash provided at separation to Parent Company | $ 1,072,000,000 | 247,000,000 | |||||||||||
Divesture of MRC [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Restructuring and other charges | $ 319,000,000 | $ 319,000,000 | |||||||||||
Alcoa Joint Venture [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Ownership interest in joint venture | 25.10% | ||||||||||||
Equity interest | 0.00% | ||||||||||||
Alcoa Corporation [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Ownership interest in joint venture | 25.10% | ||||||||||||
Contributions to MRC | $ 100,000,000 | ||||||||||||
Alcoa Corporation [Member] | Divesture of MRC [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Write off of investment | 161,000,000 | ||||||||||||
Cash contribution to an equity method investment | 100,000,000 | ||||||||||||
Write off delinquent payables due, forgiven | 59,000,000 | ||||||||||||
Gain from write off of the fair value of debt guarantee | 1,000,000 | ||||||||||||
Alcoa Corporation [Member] | Cost of Goods Sold [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Write down of remaining inventories | $ 16,000,000 | $ 16,000,000 | |||||||||||
Ma’aden [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Contributions to MRC | $ 100,000,000 | ||||||||||||
Saudi Arabia [Member] | Ma'aden Joint Venture [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Ownership interest percentage transferred | 25.10% | ||||||||||||
Saudi Arabia [Member] | Ma’aden [Member] | Maaden Alcoa Joint Venture [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Ownership interest in joint venture | 74.90% | 74.90% | |||||||||||
Restructuring And Other Charges [Member] | Alcoa Corporation [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Asset impairment | 80,000,000 | $ 80,000,000 | |||||||||||
Severance costs excluding employee related cost | 20,000,000 | ||||||||||||
Contract termination costs | 8,000,000 | 8,000,000 | |||||||||||
Restructuring And Other Charges [Member] | Alcoa Corporation [Member] | Selling, General Administrative, and Other Expenses [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Restructuring and other charges | $ 2,000,000 | 2,000,000 | |||||||||||
Gum Springs | Subsequent Event [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Sale transaction value of waste processing | $ 250,000,000 | ||||||||||||
Net cash received | 200,000,000 | ||||||||||||
Escrow to be received for divestitures | $ 50,000,000 | ||||||||||||
Avilés and La Coruña Aluminum Facilities [Member] | Aviles and La Coruna Smelters [Member] | Spain [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Restructuring and other charges | 127,000,000 | ||||||||||||
Charge for working capital commitment and write-off remaining net book value of plants assets | 32,000,000 | ||||||||||||
Avilés and La Coruña Aluminum Facilities [Member] | Aviles and La Coruna Smelters [Member] | Spain [Member] | PARTER Capital Group AG [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Charges related to curtailment, employee dismissal process, and divestiture | $ 253,000,000 | ||||||||||||
Payments for restructuring | 47,000,000 | ||||||||||||
Remaining cash outflows for restructuring expected to be paid in quarterly installments through second quarter of 2021 | 68,000,000 | ||||||||||||
Avilés and La Coruña Aluminum Facilities [Member] | Aviles and La Coruna Smelters [Member] | Spain [Member] | PARTER Capital Group AG [Member] | Maximum [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Financial contributions | $ 95,000,000 | ||||||||||||
Yadkin [Member] | |||||||||||||
Business Disposition [Line Items] | |||||||||||||
Net cash received | $ 8,000,000 | $ 8,000,000 | $ 249,000,000 | ||||||||||
Income (loss) from divestitures before income tax | 122,000,000 | ||||||||||||
Income (loss) from divestitures after income tax | $ 122,000,000 | ||||||||||||
Cash provided at separation to Parent Company | $ 243,000,000 | ||||||||||||
Number of hydroelectric power developments | HydroelectricPowerDevelopment | 4 |
Restructuring and Other Charg_3
Restructuring and Other Charges, Net - Schedule of Restructuring and Other Charges, Net (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | ||||
Loss on divestitures | $ 446 | |||
Asset impairments | 225 | $ 18 | $ 40 | |
Settlements and/or curtailments related to retirement benefits | 119 | 331 | 8 | |
Asset retirement obligations | 75 | 5 | 10 | |
Environmental remediation | 69 | 2 | 8 | |
Severance and employee termination costs | $ 37 | 51 | 2 | 15 |
Allowance on value-added tax credits | 107 | |||
Power contract payments – non-recurring | 62 | 244 | ||
Legal matter in Italy | (22) | |||
Other | 52 | 48 | 49 | |
Reversals of previously recorded layoff and other costs | (6) | (48) | (43) | |
Restructuring and other charges, net | $ 1,031 | $ 527 | $ 309 |
Restructuring and Other Charg_4
Restructuring and Other Charges, Net (2019 Actions) - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2019USD ($)Employee | Sep. 30, 2019USD ($)Employee | Jun. 30, 2019USD ($) | Feb. 28, 2019USD ($)kt | Dec. 31, 2009 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 05, 2019kt | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 1,031,000,000 | $ 527,000,000 | $ 309,000,000 | ||||||
Curtailment of certain pension and other postretirement employee benefits | (119,000,000) | (331,000,000) | (8,000,000) | ||||||
Employee termination and severance costs | $ 37,000,000 | 51,000,000 | 2,000,000 | 15,000,000 | |||||
Asset impairments | 225,000,000 | 18,000,000 | 40,000,000 | ||||||
Asset retirement obligations | 148,000,000 | 63,000,000 | |||||||
Environmental remediation | 69,000,000 | 2,000,000 | 8,000,000 | ||||||
Number of employees associated with layoff costs | Employee | 260 | ||||||||
Combined operating capacity | kt | 124 | ||||||||
Payments for restructuring | $ 118,000,000 | $ 102,000,000 | $ 73,000,000 | ||||||
Alcoa Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Ownership interest in joint venture | 25.10% | ||||||||
Equity interest | 0.00% | ||||||||
Maaden Alcoa Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Non-controlling interest, ownership percentage | 25.10% | 25.10% | 25.10% | ||||||
Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Ownership interest in joint venture | 25.10% | ||||||||
Contributions to MRC | $ 100,000,000 | ||||||||
Ma’aden [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Contributions to MRC | 100,000,000 | ||||||||
Ma'aden Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Contributions to MRC | 100,000,000 | ||||||||
Ma'aden Joint Venture [Member] | Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Project financing Investment | 296,000,000 | ||||||||
Maaden Alcoa Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Write off of MRC delinquent payables | $ 235,000,000 | ||||||||
Cost of Goods Sold [Member] | Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Other costs | $ 16,000,000 | $ 16,000,000 | |||||||
Saudi Arabia [Member] | Ma'aden Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Write off of MRC delinquent payables | 25.10% | ||||||||
Saudi Arabia [Member] | Ma’aden [Member] | Maaden Alcoa Joint Venture [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Ownership interest in joint venture | 74.90% | 74.90% | |||||||
Divesture of MRC [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | $ 319,000,000 | $ 319,000,000 | |||||||
Divesture of MRC [Member] | Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Write off of investment | 161,000,000 | 161,000,000 | |||||||
Cash contribution to an equity method investment | 100,000,000 | 100,000,000 | |||||||
Gain from write off of the fair value of debt guarantee | 1,000,000 | 1,000,000 | |||||||
Write off delinduent payables due, forgiven | 59,000,000 | 59,000,000 | |||||||
Divesture of MRC [Member] | Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Write off of investment | 161,000,000 | ||||||||
Cash contribution to an equity method investment | 100,000,000 | ||||||||
Gain from write off of the fair value of debt guarantee | 1,000,000 | ||||||||
Write off delinduent payables due, forgiven | $ 59,000,000 | ||||||||
2019 Restructuring Plan Action [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 1,031,000,000 | ||||||||
Costs related to smelter curtailment and subsequent divestiture | 235,000,000 | ||||||||
Curtailment of certain pension and other postretirement employee benefits | 119,000,000 | ||||||||
Employee termination and severance costs | 37,000,000 | ||||||||
2019 Restructuring Plan Action [Member] | Divesture of MRC [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 319,000,000 | ||||||||
2019 Restructuring Plan Action [Member] | Exit Cost [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 274,000,000 | ||||||||
2019 Restructuring Plan Action [Member] | Closure Cost [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 9,000,000 | ||||||||
2019 Restructuring Plan Action [Member] | Other Item Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 38,000,000 | ||||||||
The Point Comfort alumina refinery {Member] | Permanent Close [Member] | Texas [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Employee termination and severance costs | $ 4,000,000 | ||||||||
Asset impairments | 129,000,000 | ||||||||
Asset retirement obligations | 72,000,000 | ||||||||
Environmental remediation | $ 69,000,000 | ||||||||
Number of employees associated with layoff costs | Employee | 40 | ||||||||
The Point Comfort alumina refinery {Member] | Permanent Close [Member] | Texas [Member] | Cost of Goods Sold [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Other costs | $ 2,000,000 | ||||||||
Aviles and La Coruna Smelters [Member] | Spain [Member] | Avilés and La Coruña Aluminum Facilities [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and other charges | 127,000,000 | ||||||||
Charge for working capital commitment and write-off remaining net book value of plants assets | 32,000,000 | ||||||||
Aviles and La Coruna Smelters [Member] | Spain [Member] | PARTER Capital Group AG [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of plants to be purchased | kt | 2 | ||||||||
Aviles and La Coruna Smelters [Member] | Spain [Member] | PARTER Capital Group AG [Member] | Avilés and La Coruña Aluminum Facilities [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Payments for restructuring | 47,000,000 | ||||||||
Remaining cash outflows for restructuring expected to be paid in quarterly installments through second quarter of 2021 | $ 68,000,000 | 68,000,000 | |||||||
Aviles and La Coruna Smelters [Member] | Spain [Member] | PARTER Capital Group AG [Member] | Avilés and La Coruña Aluminum Facilities [Member] | Maximum [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Financial contributions | 95,000,000 | ||||||||
Restructuring And Other Charges [Member] | Alcoa Corporation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Asset impairments | 80,000,000 | 80,000,000 | |||||||
Severance and employee related costs | 20,000,000 | ||||||||
Contract termination costs | 8,000,000 | 8,000,000 | |||||||
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 | $ 2,000,000 | $ 2,000,000 |
Restructuring and Other Charg_5
Restructuring and Other Charges, Net (2018 Actions) - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)Potlinekt | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Settlements and/or curtailments related to retirement benefits | $ 38 | $ (23) | ||
Allowance on value-added tax credits | 107 | |||
Cash payment | 118 | 102 | $ 73 | |
Asset impairments | 225 | 18 | $ 40 | |
Asset retirement obligations | $ 148 | 63 | ||
Alcoa Corporation [Member] | 2018 Restructuring Plans Action [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 527 | |||
Settlements and/or curtailments related to retirement benefits | 331 | |||
Alcoa Corporation [Member] | Brazil [Member] | 2018 Restructuring Plans Action [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Allowance on value-added tax credits | 107 | |||
Contract Termination [Member] | 2018 Restructuring Plans Action [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cash payment | $ 62 | |||
Total number of potlines | Potline | 4 | |||
Number of potlines closed | Potline | 1 | |||
Capacity closure | kt | 38 | |||
Asset impairments | $ 10 | |||
Asset retirement obligations | $ 1 | |||
Remaining number of potlines | Potline | 3 | |||
Remaining curtailment capacity | kt | 146 | |||
Contract Termination [Member] | Alcoa Corporation [Member] | 2018 Restructuring Plans Action [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 86 | |||
Net benefit for settlement of matters | 15 | |||
Additional restructuring charge | 73 | |||
Other Item Charges [Member] | Alcoa Corporation [Member] | 2018 Restructuring Plans Action [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 18 |
Restructuring and Other Charg_6
Restructuring and Other Charges, Net (2017 Actions) - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2019USD ($)Employee | Dec. 31, 2017akt | Oct. 31, 2017USD ($)a | Jul. 31, 2017USD ($)ktPotline | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)Employee | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Number of employees associated with layoff costs | Employee | 260 | |||||||||||||||||
Cash payment | $ 118 | $ 102 | $ 73 | |||||||||||||||
Sales | $ 2,436 | $ 2,567 | $ 2,711 | $ 2,719 | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | 10,433 | 13,403 | 11,652 | |||||||
Asset impairments | 225 | 18 | 40 | |||||||||||||||
Other costs | 52 | 48 | 49 | |||||||||||||||
Asset retirement obligations | 90 | 80 | ||||||||||||||||
Environmental remediation | 69 | 2 | 8 | |||||||||||||||
Severance costs | $ 37 | 51 | 2 | 15 | ||||||||||||||
Carrying value of the smelter and related assets | $ 14,631 | $ 16,132 | $ 14,631 | 16,132 | ||||||||||||||
Smelting and Related Assets [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Carrying value of the smelter and related assets | $ 0 | |||||||||||||||||
2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Other costs | 16 | |||||||||||||||||
Other costs | 6 | |||||||||||||||||
Number of potlines restarted | Potline | 3 | |||||||||||||||||
Capacity of restarted potlines | kt | 161 | |||||||||||||||||
Total number of potlines | Potline | 5 | |||||||||||||||||
Total capacity of potlines | kt | 269 | |||||||||||||||||
Liabilities related to original closure decision reversed | $ 33 | |||||||||||||||||
Asset retirement obligations | 20 | |||||||||||||||||
Environmental remediation | 4 | |||||||||||||||||
Severance costs | $ 9 | |||||||||||||||||
2017 Restructuring Plans Action [Member] | Smelting and Related Assets [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Carrying value of the smelter and related assets | $ 0 | $ 0 | ||||||||||||||||
Alcoa Corporation [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring and other charges | $ 309 | |||||||||||||||||
Number of employees associated with layoff costs | Employee | 130 | |||||||||||||||||
Alcoa Corporation [Member] | 2017 Restructuring Plans Action [Member] | Aluminum Segment [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Number of employees associated with layoff costs | Employee | 115 | |||||||||||||||||
Rarly Termination of Power Contract [Member] | Alcoa Corporation [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring and other charges | $ 244 | |||||||||||||||||
Exit Cost [Member] | Alcoa Corporation [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring and other charges | 49 | |||||||||||||||||
Contract Termination [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Cash payment | $ 238 | |||||||||||||||||
Area of land transferred | a | 2,200 | |||||||||||||||||
Net asset carrying value | $ 6 | |||||||||||||||||
Sales | $ 105 | |||||||||||||||||
Cost Of Goods And Services Sold | $ 148 | |||||||||||||||||
Capacity closure | kt | 191 | |||||||||||||||||
Area of land owned | a | 30,000 | |||||||||||||||||
Asset impairments | 32 | |||||||||||||||||
Cash payments made against the layoff reserves | 1 | |||||||||||||||||
Other costs | $ 16 | |||||||||||||||||
Contract Termination [Member] | 2017 Restructuring Plans Action [Member] | Corporate [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Number of employees associated with layoff costs | Employee | 10 | |||||||||||||||||
Contract Termination [Member] | Alcoa Corporation [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring and other charges | $ 41 | |||||||||||||||||
Restructuring Programs Layoffs 2017 [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Cash payments made against the layoff reserves | $ 3 | 9 | ||||||||||||||||
Restructuring Programs Layoffs 2017 [Member] | Alcoa Corporation [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring and other charges | 22 | |||||||||||||||||
Reserve Previously Established [Member] | Alcoa Corporation [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring and other charges | 22 | |||||||||||||||||
Other Item Charges [Member] | Alcoa Corporation [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring and other charges | 18 | |||||||||||||||||
Other Adjustments [Member] | Alcoa Corporation [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring and other charges | 43 | |||||||||||||||||
Asset Retirement Obligations [Member] | 2017 Restructuring Plans Action [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Other costs | 8 | |||||||||||||||||
Environmental Remediation [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring and other charges | $ 8 |
Restructuring and Other Charg_7
Restructuring and Other Charges, Net - Schedule of Restructuring and Other Charges, Net by Reportable Segments, Pretax (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $ 1,031 | $ 527 | $ 309 |
Operating Segments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | 888 | 215 | 56 |
Corporate [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | 143 | 312 | 253 |
Bauxite [Member] | Operating Segments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | 5 | 1 | 2 |
Alumina [Member] | Operating Segments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | 272 | 112 | 3 |
Aluminum Segment [Member] | Operating Segments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $ 611 | $ 102 | $ 51 |
Restructuring and Other Charg_8
Restructuring and Other Charges, Net - Activity and Reserve Balances for Restructuring Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve beginning balance | $ 47 | $ 45 | $ 66 |
Restructuring charges, net | 212 | 111 | 65 |
Cash payments | (118) | (102) | (73) |
Reversals and other | (4) | (7) | (13) |
Restructuring reserve ending balance | 137 | 47 | 45 |
Severance and Employee Termination Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve beginning balance | 5 | 11 | 38 |
Restructuring charges, net | 51 | 2 | 15 |
Cash payments | (19) | (7) | (30) |
Reversals and other | (2) | (1) | (12) |
Restructuring reserve ending balance | 35 | 5 | 11 |
Other Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve beginning balance | 42 | 34 | 28 |
Restructuring charges, net | 161 | 109 | 50 |
Cash payments | (99) | (95) | (43) |
Reversals and other | (2) | (6) | (1) |
Restructuring reserve ending balance | $ 102 | $ 42 | $ 34 |
Restructuring and Other Charg_9
Restructuring and Other Charges, Net - Additional Information (Detail) - Alcoa Corporation [Member] $ in Millions | Dec. 31, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Noncurrent portion of the reserve | $ 13 |
PARTER Capital Group AG [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Noncurrent portion of the reserve | $ 12 |
Segment and Related Informati_3
Segment and Related Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019SegmentProduct_Division | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Number of product divisions | Product_Division | 5 |
Alcoa Corporation [Member] | |
Segment Reporting Information [Line Items] | |
Ownership interest in joint venture | 25.10% |
AWAC [Member] | |
Segment Reporting Information [Line Items] | |
Ownership interest in joint venture | 25.10% |
Segment and Related Informati_4
Segment and Related Information - Schedule of Operating Results, Capital Expenditures and Assets of Alcoa's Reportable Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | $ 1,626 | $ 3,250 | $ 2,739 |
Depreciation, depletion, and amortization | 680 | 702 | 708 |
Equity income (loss) | (43) | (6) | (24) |
Capital expenditures | 342 | 366 | |
Equity investments | 1,092 | 1,335 | |
Total assets | 12,325 | 13,806 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 12,907 | 16,378 | 14,112 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Intersegment sales | 2,557 | 3,063 | 2,619 |
Third-Party Sales [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Third-party sales | 10,350 | 13,315 | 11,493 |
Bauxite [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | 504 | 426 | 424 |
Depreciation, depletion, and amortization | 120 | 111 | 82 |
Capital expenditures | 53 | 47 | |
Equity investments | 212 | 189 | |
Total assets | 1,434 | 1,448 | |
Bauxite [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 1,276 | 1,215 | 1,208 |
Bauxite [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Intersegment sales | 979 | 944 | 875 |
Bauxite [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Third-party sales | 297 | 271 | 333 |
Alumina [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | 1,097 | 2,373 | 1,289 |
Depreciation, depletion, and amortization | 214 | 197 | 207 |
Equity income (loss) | 6 | 32 | (5) |
Capital expenditures | 137 | 194 | |
Equity investments | 293 | 290 | |
Total assets | 4,303 | 4,643 | |
Alumina [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 4,811 | 6,316 | 4,856 |
Alumina [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Intersegment sales | 1,561 | 2,101 | 1,723 |
Alumina [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Third-party sales | 3,250 | 4,215 | 3,133 |
Aluminum [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | 25 | 451 | 1,026 |
Depreciation, depletion, and amortization | 346 | 394 | 419 |
Equity income (loss) | (49) | (38) | (19) |
Capital expenditures | 152 | 125 | |
Equity investments | 587 | 856 | |
Total assets | 6,588 | 7,715 | |
Aluminum [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total sales | 6,820 | 8,847 | 8,048 |
Aluminum [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Intersegment sales | 17 | 18 | 21 |
Aluminum [Member] | Third-Party Sales [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Third-party sales | $ 6,803 | $ 8,829 | $ 8,027 |
Segment and Related Informati_5
Segment and Related Information - Schedule of Reconciliation of Certain Segment Information to Consolidated Totals (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | $ 2,436 | $ 2,567 | $ 2,711 | $ 2,719 | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | $ 10,433 | $ 13,403 | $ 11,652 |
Other [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | 83 | 88 | 159 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated sales | 12,907 | 16,378 | 14,112 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Elimination of intersegment sales | $ (2,557) | $ (3,063) | $ (2,619) |
Segment and Related Informati_6
Segment and Related Information - Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alcoa Corporation (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total Segment Adjusted EBITDA | $ 1,626 | $ 3,250 | $ 2,739 | ||||||||
Transformation | (7) | (3) | (49) | ||||||||
Intersegment eliminations | 150 | (8) | (80) | ||||||||
Corporate expenses | (101) | (96) | (131) | ||||||||
Provision for depreciation, depletion, and amortization | (713) | (733) | (750) | ||||||||
Restructuring and other charges, net (D) | (1,031) | (527) | (309) | ||||||||
Interest expense (T) | (121) | (122) | (104) | ||||||||
Other expenses, net (T) | (162) | (64) | (27) | ||||||||
(Loss) income before income taxes | (438) | 1,625 | 1,200 | ||||||||
Provision for income taxes (P) | (415) | (732) | (592) | ||||||||
Net income attributable to noncontrolling interest | (272) | (643) | (329) | ||||||||
Net (loss) income attributable to Alcoa Corporation (I) | $ (303) | $ (221) | $ (402) | $ (199) | $ 51 | $ (6) | $ 10 | $ 195 | (1,125) | 250 | 279 |
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring and other charges, net (D) | (1,031) | (527) | (309) | ||||||||
Interest expense (T) | (121) | (122) | (104) | ||||||||
Other | $ (79) | $ (72) | $ (89) |
Segment and Related Informati_7
Segment and Related Information - Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alcoa Corporation (Parenthetical) (Detail) - Change in Accounting Principle from LIFO to Average Cost [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ 47 | $ 14 |
Increase (decrease) in intersegment eliminations | $ (19) | $ 27 |
Segment and Related Informati_8
Segment and Related Information - Schedule of Segment Reporting Information to Consolidated Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Assets By Segment [Line Items] | ||
Consolidated assets | $ 14,631 | $ 16,132 |
Cash and cash equivalents | 879 | 1,113 |
Corporate fixed assets, net | 7,916 | 8,327 |
Corporate goodwill | 150 | 151 |
Deferred income taxes | 410 | |
Operating Segments [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Consolidated assets | 12,325 | 13,806 |
Intersegment Eliminations [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Elimination of intersegment receivables | (170) | (271) |
Other [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Cash and cash equivalents | 879 | 1,113 |
Corporate fixed assets, net | 519 | 520 |
Corporate goodwill | 145 | 146 |
Deferred income taxes | 642 | 560 |
Other | $ 291 | $ 258 |
Segment and Related Informati_9
Segment and Related Information - Schedule of Product Division Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bauxite [Member] | |
Product Information [Line Items] | |
Product division | Bauxite |
Pricing components | Negotiated |
Shipping terms | FOB/CIF |
Payment terms | LC Sight |
Alumina [Member] | Smelter-grade [Member] | |
Product Information [Line Items] | |
Product division | Alumina: Smelter-grade |
Pricing components | API/spot |
Shipping terms | FOB |
Payment terms | LC Sight/CAD/Net 30 days |
Alumina [Member] | Non-metallurgical [Member] | |
Product Information [Line Items] | |
Product division | Alumina: Non-metallurgical |
Pricing components | Negotiated |
Shipping terms | FOB/CIF |
Payment terms | Net 30 days |
Primary Aluminum [Member] | Common Alloy Ingot [Member] | |
Product Information [Line Items] | |
Product division | Primary aluminum: Common alloy ingot |
Pricing components | LME + Regional premium |
Shipping terms | DAP/CIF |
Payment terms | Net 10 to 45 days |
Primary Aluminum [Member] | Value-add Ingot [Member] | |
Product Information [Line Items] | |
Product division | Primary aluminum: Value-add ingot |
Pricing components | LME + Regional premium + Product premium |
Shipping terms | DAP/CIF |
Payment terms | Net 30 to 45 days |
Flat-Rolled Aluminum [Member] | |
Product Information [Line Items] | |
Product division | Flat-rolled aluminum |
Pricing components | Metal + Conversion |
Shipping terms | DAP |
Payment terms | Negotiated |
Segment and Related Informat_10
Segment and Related Information - Schedule of Third-party Sales by Product Division (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Sales | $ 2,436 | $ 2,567 | $ 2,711 | $ 2,719 | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | $ 10,433 | $ 13,403 | $ 11,652 |
Primary Aluminum [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Sales | 5,426 | 6,787 | 6,168 | ||||||||
Alumina [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Sales | 3,246 | 4,209 | 3,121 | ||||||||
Flat-Rolled Aluminum [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Sales | 1,220 | 1,884 | 1,666 | ||||||||
Energy [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Sales | 290 | 335 | 446 | ||||||||
Bauxite [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Sales | 276 | 254 | 333 | ||||||||
Other Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Sales | $ (25) | $ (66) | $ (82) |
Segment and Related Informat_11
Segment and Related Information - Schedule of Geographic Information for Third-party Sales (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 2,436 | $ 2,567 | $ 2,711 | $ 2,719 | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | $ 10,433 | $ 13,403 | $ 11,652 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 4,606 | 5,887 | 5,313 | ||||||||
Spain [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 3,077 | 3,806 | 3,303 | ||||||||
Australia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,249 | 2,930 | 2,266 | ||||||||
Brazil [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 428 | 498 | 569 | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 5 | 216 | 150 | ||||||||
Other Geographical Regions [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 68 | $ 66 | $ 51 |
Segment and Related Informat_12
Segment and Related Information - Schedule of Geographic Information for Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 7,916 | $ 8,327 |
Australia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,044 | 2,002 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,596 | 1,729 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,491 | 1,599 |
Iceland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,160 | 1,216 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,047 | 1,064 |
Norway [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 365 | 381 |
Spain [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 209 | 321 |
Other Geographical Regions [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 4 | $ 15 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted EPS Attributable to Alcoa Corporation Common Shareholders (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Average shares outstanding—basic | 185 | 186 | 184 |
Effect of dilutive securities: | |||
Stock options | 1 | 1 | |
Stock units | 2 | 2 | |
Average shares outstanding—diluted | 185 | 189 | 187 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares shares in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Awards and Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of anti-dilutive securities | 4 | 1 |
Common shares equivalents that would have been included in diluted average shares outstanding | 1 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of anti-dilutive securities | 2 | |
Weighted average exercise price of options | $ 32.66 | $ 38.67 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension and other postretirement benefits | |||
Total Other comprehensive (loss) income | $ (9) | $ 504 | $ (447) |
Foreign currency translation | |||
Other comprehensive (loss) income | (113) | (833) | 284 |
Cash flow hedges | |||
Net change from periodic revaluations | (437) | 803 | |
Net amount reclassified to earnings | 22 | 77 | |
Total Accumulated other comprehensive loss | (4,974) | (4,565) | |
Alcoa Corporation [Member] | |||
Pension and other postretirement benefits | |||
Balance at beginning of period | (2,283) | (2,786) | (2,330) |
Unrecognized net actuarial loss and prior service cost/benefit | (309) | 19 | (671) |
Tax benefit (expense) | 28 | (8) | 25 |
Total Other comprehensive (loss) income before reclassifications, net of tax | (281) | 11 | (646) |
Amortization of net actuarial loss and prior service cost/benefit | 299 | 546 | 199 |
Tax expense | (17) | (54) | (9) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 282 | 492 | 190 |
Total Other comprehensive (loss) income | 1 | 503 | (456) |
Balance at end of period | (2,282) | (2,283) | (2,786) |
Foreign currency translation | |||
Balance at beginning of period | (2,071) | (1,467) | (1,655) |
Other comprehensive (loss) income | (89) | (604) | 188 |
Balance at end of period | (2,160) | (2,071) | (1,467) |
Cash flow hedges | |||
Balance at beginning of period | (211) | (929) | 210 |
Net change from periodic revaluations | (437) | 803 | (1,489) |
Tax benefit (expense) | 83 | (159) | 251 |
Total Other comprehensive (loss) income before reclassifications, net of tax | (354) | 644 | (1,238) |
Net amount reclassified to earnings | 23 | 77 | 109 |
Tax benefit (expense) | 10 | (3) | (10) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 33 | 74 | 99 |
Total Other comprehensive (loss) income | (321) | 718 | (1,139) |
Balance at end of period | (532) | (211) | (929) |
Total Accumulated other comprehensive loss | (4,974) | (4,565) | (5,182) |
Alcoa Corporation [Member] | Aluminum Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 44 | 108 | 130 |
Alcoa Corporation [Member] | Financial Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | (43) | (37) | (19) |
Alcoa Corporation [Member] | Foreign Exchange Contract [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 18 | 6 | (2) |
Alcoa Corporation [Member] | Interest Rate Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | 4 | ||
Non-controlling Interest [Member] | |||
Pension and other postretirement benefits | |||
Balance at beginning of period | (46) | (47) | (56) |
Unrecognized net actuarial loss and prior service cost/benefit | (14) | (3) | 9 |
Tax benefit (expense) | (2) | ||
Total Other comprehensive (loss) income before reclassifications, net of tax | (14) | (3) | 7 |
Amortization of net actuarial loss and prior service cost/benefit | 5 | 4 | 2 |
Tax expense | (1) | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 4 | 4 | 2 |
Total Other comprehensive (loss) income | (10) | 1 | 9 |
Balance at end of period | (56) | (46) | (47) |
Foreign currency translation | |||
Balance at beginning of period | (810) | (581) | (677) |
Other comprehensive (loss) income | (24) | (229) | 96 |
Balance at end of period | (834) | (810) | (581) |
Cash flow hedges | |||
Balance at beginning of period | 31 | 51 | 1 |
Net change from periodic revaluations | 20 | (4) | 83 |
Tax benefit (expense) | (6) | 1 | (25) |
Total Other comprehensive (loss) income before reclassifications, net of tax | 14 | (3) | 58 |
Net amount reclassified to earnings | (35) | (24) | (12) |
Tax benefit (expense) | 10 | 7 | 4 |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | (25) | (17) | (8) |
Total Other comprehensive (loss) income | (11) | (20) | 50 |
Balance at end of period | 20 | 31 | 51 |
Total Accumulated other comprehensive loss | (870) | (825) | (577) |
Non-controlling Interest [Member] | Financial Contracts [Member] | |||
Cash flow hedges | |||
Net amount reclassified to earnings | $ (35) | $ (24) | $ (12) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Settlements and/or curtailments related to retirement benefits | $ 38 | $ (23) |
Alcoa Corporation [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Settlements and/or curtailments related to retirement benefits | 116 | 330 |
Non-controlling Interest [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Settlements and/or curtailments related to retirement benefits | $ 3 | $ 1 |
Investments - Summary of Invest
Investments - Summary of Investment (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Investments [Abstract] | ||
Equity investments | $ 1,103 | $ 1,350 |
Other investments | 10 | 10 |
Investments | $ 1,113 | $ 1,360 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018USD ($) | Dec. 31, 2009 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018CAD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Dividends from equity investments | $ 39,000,000 | $ 45,000,000 | $ 71,000,000 | |||||
Outstanding receivable for labor and other employee-related expenses | 8,000,000 | 11,000,000 | ||||||
Combined investment in joint venture | 1,103,000,000 | 1,350,000,000 | ||||||
Research and development expenses | $ 27,000,000 | 31,000,000 | $ 32,000,000 | |||||
Maaden Alcoa Joint Venture [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Non-controlling interest, ownership percentage | 25.10% | 25.10% | ||||||
Rio Tinto Plc [Member] | Elysis TM Limited Partnership [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest percentage | 48.235% | |||||||
Alcoa Corporation [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest in joint venture | 25.10% | |||||||
Alcoa Corporation [Member] | Elysis TM Limited Partnership [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest percentage | 48.235% | |||||||
Quebec Provincial Government [Member] | Elysis TM Limited Partnership [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Limited partner ownership interest percentage | 3.53% | |||||||
Saudi Arabia [Member] | Ma’aden [Member] | Maaden Alcoa Joint Venture [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest in joint venture | 74.90% | 74.90% | ||||||
Ma'aden Joint Venture [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Joint venture shareholders agreement period, years | 30 years | |||||||
Joint venture shareholders agreement, automatic extension additional period, years | 20 years | |||||||
Ma'aden Joint Venture [Member] | Saudi Arabia [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest percentage transferred | 25.10% | |||||||
Alcoa Joint Venture [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest in joint venture | 25.10% | |||||||
Equity interest | 0.00% | |||||||
Maaden Alcoa Joint Venture [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity investments | $ 603,000,000 | 874,000,000 | ||||||
Elysis TM Limited Partnership [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Combined investment in joint venture | $ 144,000,000 | $ 188 | ||||||
Contribution to joint venture | 5,000,000 | |||||||
Research and development expenses | 3,000,000 | |||||||
Basis in investment, due to share of losses | 0 | |||||||
Unrecognized losses | $ 17,000,000 | |||||||
Elysis TM Limited Partnership [Member] | Alcoa Corporation [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Contribution to joint venture | $ 5,000,000 | $ 6 | ||||||
Elysis TM Limited Partnership [Member] | Alcoa Corporation And Rio Tinto Plc | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Commitment to invest In joint venture | $ 42,000,000 | $ 55 |
Investments - Schedule of Equit
Investments - Schedule of Equity Investment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Maaden Aluminium Compay [Member] | Saudi Arabia [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Aluminum smelter and casthouse |
Percent of equity investments in other entity | 25.10% |
Maaden Bauxite and Alumina CO [Member] | Saudi Arabia [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Bauxite mine and alumina refinery |
Percent of equity investments in other entity | 25.10% |
Halco Mining Inc [Member] | GUINEA | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Bauxite mine |
Percent of equity investments in other entity | 45.00% |
Energética Barra Grande S.A. [Member] | Brazil [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Hydroelectric generation facility |
Percent of equity investments in other entity | 42.18% |
Pechiney Reynolds Quebec Inc [Member] | Canada [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Aluminum smelter |
Percent of equity investments in other entity | 50.00% |
Consorcio Serra Do Facao [Member] | Brazil [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Hydroelectric generation facility |
Percent of equity investments in other entity | 34.97% |
MRN [Member] | Brazil [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Bauxite mine |
Percent of equity investments in other entity | 18.20% |
Manicouagan Power Limited Partnership [Member] | Canada [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Hydroelectric generation facility |
Percent of equity investments in other entity | 40.00% |
Elysis TM Limited Partnership [Member] | Canada [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Nature of investment | Aluminum smelting technology |
Percent of equity investments in other entity | 48.235% |
Investments - Summary of Profit
Investments - Summary of Profit and Loss Information for Alcoa Corporation's Equity Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ma'aden Joint Venture [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | $ 3,185 | $ 3,986 | $ 3,032 |
Cost of goods sold | 2,722 | 3,334 | 2,776 |
Net (loss) income | (198) | 9 | (157) |
Equity in net (loss) income of affiliated companies, before reconciling adjustments | (50) | 2 | (39) |
Other | 3 | (13) | 9 |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | (47) | (11) | (30) |
Mining [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 846 | 802 | 766 |
Cost of goods sold | 580 | 522 | 539 |
Net (loss) income | 35 | 71 | 77 |
Equity in net (loss) income of affiliated companies, before reconciling adjustments | 16 | 23 | 27 |
Other | 5 | (10) | (1) |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 21 | 13 | 26 |
Energy [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 269 | 283 | 339 |
Cost of goods sold | 143 | 146 | 174 |
Net (loss) income | 107 | 114 | 139 |
Equity in net (loss) income of affiliated companies, before reconciling adjustments | 42 | 46 | 53 |
Other | 1 | (4) | 2 |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | 43 | 42 | 55 |
Other [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 159 | 120 | 332 |
Cost of goods sold | 151 | 110 | 292 |
Net (loss) income | (28) | 16 | 23 |
Equity in net (loss) income of affiliated companies, before reconciling adjustments | (13) | 8 | 11 |
Other | 16 | (1) | |
Alcoa Corporation’s equity in net (loss) income of affiliated companies | $ 3 | $ 7 | $ 11 |
Investments - Summary of Balanc
Investments - Summary of Balance Sheet Information for Alcoa Corporation's Equity Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Ma'aden Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 1,109 | $ 1,684 |
Noncurrent assets | 7,931 | 9,115 |
Current liabilities | 677 | 1,379 |
Noncurrent liabilities | 5,587 | 6,101 |
Mining [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 191 | 185 |
Noncurrent assets | 923 | 817 |
Current liabilities | 156 | 126 |
Noncurrent liabilities | 511 | 439 |
Energy [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 106 | 84 |
Noncurrent assets | 509 | 542 |
Current liabilities | 41 | 36 |
Noncurrent liabilities | 87 | 101 |
Other [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 181 | 139 |
Noncurrent assets | 761 | 97 |
Current liabilities | 59 | 49 |
Noncurrent liabilities | $ 42 | $ 4 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 305 | $ 346 |
Work-in-process | 282 | 189 |
Bauxite and alumina | 446 | 609 |
Purchased raw materials | 453 | 529 |
Operating supplies | 158 | 146 |
Inventories, total | $ 1,644 | $ 1,819 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2017 |
Inventory [Line Items] | |||
Retained (deficit) earnings | $ (555) | $ 570 | |
Noncontrolling interest | $ 1,774 | 1,970 | |
Change in Accounting Principle from LIFO to Average Cost [Member] | Effect of Change [Member] | |||
Inventory [Line Items] | |||
Retained (deficit) earnings | 229 | $ 143 | |
Noncontrolling interest | $ (35) | $ (22) |
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 | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Statement of Consolidated Operations | ||||||||||||
Cost of goods sold | $ 8,537 | $ 10,053 | $ 8,950 | |||||||||
Provision for income taxes | 415 | 732 | 592 | |||||||||
Net (loss) income | $ (355) | $ (147) | $ (293) | $ (58) | $ 227 | $ 195 | $ 131 | $ 340 | (853) | 893 | 608 | |
Net income attributable to noncontrolling interest | 272 | 643 | 329 | |||||||||
Net (loss) income attributable to Alcoa Corporation | $ (303) | $ (221) | $ (402) | $ (199) | $ 51 | $ (6) | $ 10 | $ 195 | $ (1,125) | $ 250 | $ 279 | |
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||||||||||
Basic | $ (1.63) | $ (1.19) | $ (2.17) | $ (1.07) | $ 0.27 | $ (0.03) | $ 0.05 | $ 1.05 | $ (6.07) | $ 1.34 | $ 1.51 | |
Diluted | $ (1.63) | $ (1.19) | $ (2.17) | $ (1.07) | $ 0.27 | $ (0.03) | $ 0.05 | $ 1.04 | $ (6.07) | $ 1.33 | $ 1.49 | |
Statement of Consolidated Comprehensive Income | ||||||||||||
Comprehensive income (loss) | $ (1,307) | $ 1,262 | $ (644) | |||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 227 | 395 | 484 | |||||||||
Comprehensive income (loss) attributable to Alcoa Corporation | (1,534) | 867 | (1,128) | |||||||||
Consolidated Balance Sheet | ||||||||||||
Inventories | $ 1,644 | $ 1,819 | 1,644 | 1,819 | ||||||||
Prepaid expenses and other current assets | 288 | 320 | 288 | 320 | ||||||||
Retained (deficit) earnings | (555) | 570 | (555) | 570 | ||||||||
Noncontrolling interest | 1,774 | 1,970 | 1,774 | 1,970 | ||||||||
Statement of Consolidated Cash Flows | ||||||||||||
Net (loss) income | (355) | $ (147) | $ (293) | $ (58) | 227 | $ 195 | $ 131 | $ 340 | (853) | 893 | 608 | |
Deferred income taxes | 15 | (30) | 168 | |||||||||
Decrease (Increase) in inventories (I) | 137 | (306) | (279) | |||||||||
Change in Accounting Principle from LIFO to Average Cost [Member] | As Computed under LIFO [Member] | ||||||||||||
Statement of Consolidated Operations | ||||||||||||
Cost of goods sold | 8,528 | |||||||||||
Provision for income taxes | 400 | |||||||||||
Net (loss) income | (829) | |||||||||||
Net income attributable to noncontrolling interest | 246 | |||||||||||
Net (loss) income attributable to Alcoa Corporation | $ (1,075) | |||||||||||
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||||||||||
Basic | $ (5.80) | |||||||||||
Diluted | $ (5.80) | |||||||||||
Statement of Consolidated Comprehensive Income | ||||||||||||
Comprehensive income (loss) | $ (1,283) | |||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 201 | |||||||||||
Comprehensive income (loss) attributable to Alcoa Corporation | (1,484) | |||||||||||
Consolidated Balance Sheet | ||||||||||||
Inventories | 1,478 | 1,478 | ||||||||||
Prepaid expenses and other current assets | 284 | 284 | ||||||||||
Retained (deficit) earnings | (734) | (734) | ||||||||||
Noncontrolling interest | 1,783 | 1,783 | ||||||||||
Statement of Consolidated Cash Flows | ||||||||||||
Net (loss) income | (829) | |||||||||||
Decrease (Increase) in inventories (I) | 128 | |||||||||||
Change in Accounting Principle from LIFO to Average Cost [Member] | Effect of Change [Member] | ||||||||||||
Statement of Consolidated Operations | ||||||||||||
Cost of goods sold | 9 | |||||||||||
Provision for income taxes | 15 | |||||||||||
Net (loss) income | (24) | |||||||||||
Net income attributable to noncontrolling interest | 26 | |||||||||||
Net (loss) income attributable to Alcoa Corporation | $ (50) | |||||||||||
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||||||||||
Basic | $ (0.27) | |||||||||||
Diluted | $ (0.27) | |||||||||||
Statement of Consolidated Comprehensive Income | ||||||||||||
Comprehensive income (loss) | $ (24) | |||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 26 | |||||||||||
Comprehensive income (loss) attributable to Alcoa Corporation | (50) | |||||||||||
Consolidated Balance Sheet | ||||||||||||
Inventories | 166 | 166 | ||||||||||
Prepaid expenses and other current assets | 4 | 4 | ||||||||||
Retained (deficit) earnings | 179 | 179 | ||||||||||
Noncontrolling interest | $ (9) | (9) | ||||||||||
Statement of Consolidated Cash Flows | ||||||||||||
Net (loss) income | (24) | |||||||||||
Deferred income taxes | 15 | |||||||||||
Decrease (Increase) in inventories (I) | $ 9 | |||||||||||
Change in Accounting Principle from LIFO to Average Cost [Member] | As Originally Reported [Member] | ||||||||||||
Statement of Consolidated Operations | ||||||||||||
Cost of goods sold | 10,081 | 8,991 | ||||||||||
Provision for income taxes | 726 | 600 | ||||||||||
Net (loss) income | 871 | 559 | ||||||||||
Net income attributable to noncontrolling interest | 644 | 342 | ||||||||||
Net (loss) income attributable to Alcoa Corporation | $ 227 | $ 217 | ||||||||||
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||||||||||
Basic | $ 1.22 | $ 1.18 | ||||||||||
Diluted | $ 1.20 | $ 1.16 | ||||||||||
Statement of Consolidated Comprehensive Income | ||||||||||||
Comprehensive income (loss) | $ 1,240 | $ (693) | ||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 396 | 497 | ||||||||||
Comprehensive income (loss) attributable to Alcoa Corporation | 844 | (1,190) | ||||||||||
Consolidated Balance Sheet | ||||||||||||
Inventories | 1,644 | 1,644 | ||||||||||
Prepaid expenses and other current assets | 301 | 301 | ||||||||||
Retained (deficit) earnings | 341 | 341 | ||||||||||
Noncontrolling interest | 2,005 | 2,005 | ||||||||||
Statement of Consolidated Cash Flows | ||||||||||||
Net (loss) income | 871 | 559 | ||||||||||
Deferred income taxes | (36) | 176 | ||||||||||
Decrease (Increase) in inventories (I) | (278) | (238) | ||||||||||
Change in Accounting Principle from LIFO to Average Cost [Member] | Effect of Change [Member] | ||||||||||||
Statement of Consolidated Operations | ||||||||||||
Cost of goods sold | (28) | (41) | ||||||||||
Provision for income taxes | 6 | (8) | ||||||||||
Net (loss) income | 22 | 49 | ||||||||||
Net income attributable to noncontrolling interest | (1) | (13) | ||||||||||
Net (loss) income attributable to Alcoa Corporation | $ 23 | $ 62 | ||||||||||
Earnings per share attributable to Alcoa Corporation common shareholders: | ||||||||||||
Basic | $ 0.12 | $ 0.33 | ||||||||||
Diluted | $ 0.13 | $ 0.33 | ||||||||||
Statement of Consolidated Comprehensive Income | ||||||||||||
Comprehensive income (loss) | $ 22 | $ 49 | ||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | (1) | (13) | ||||||||||
Comprehensive income (loss) attributable to Alcoa Corporation | 23 | 62 | ||||||||||
Consolidated Balance Sheet | ||||||||||||
Inventories | 175 | 175 | ||||||||||
Prepaid expenses and other current assets | 19 | 19 | ||||||||||
Retained (deficit) earnings | 229 | 229 | $ 143 | |||||||||
Noncontrolling interest | $ (35) | (35) | $ (22) | |||||||||
Statement of Consolidated Cash Flows | ||||||||||||
Net (loss) income | 22 | 49 | ||||||||||
Deferred income taxes | 6 | (8) | ||||||||||
Decrease (Increase) in inventories (I) | $ (28) | $ (41) |
Properties, Plants, and Equip_3
Properties, Plants, and Equipment, Net - Schedule of Properties, Plants, and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation, depletion, and amortization | $ 13,799 | $ 13,480 |
Properties, plants, and equipment excluding construction work-in-progress | 7,595 | 7,921 |
Construction work-in-progress | 321 | 406 |
Properties, plants, and equipment, net | 7,916 | 8,327 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 333 | 328 |
Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 8,126 | 8,300 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 12,935 | 12,773 |
Property Plant And Equipment Other Than Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 21,394 | 21,401 |
Operating Segments [Member] | Bauxite Mining [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 1,138 | 1,119 |
Operating Segments [Member] | Bauxite Mining [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 499 | 480 |
Operating Segments [Member] | Alumina Refining [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 2,415 | 2,478 |
Operating Segments [Member] | Alumina Refining [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 3,956 | 3,604 |
Operating Segments [Member] | Aluminum Smelting and Casting [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 3,457 | 3,532 |
Operating Segments [Member] | Aluminum Smelting and Casting [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 6,251 | 6,489 |
Operating Segments [Member] | Energy [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 440 | 506 |
Operating Segments [Member] | Energy [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 879 | 889 |
Operating Segments [Member] | Aluminum Rolling [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 290 | 285 |
Operating Segments [Member] | Aluminum Rolling [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 1,057 | 1,029 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, net | 519 | 520 |
Other [Member] | Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 386 | 380 |
Other [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | $ 293 | $ 282 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Goodwill which is Included in Other Noncurret Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | ||
Goodwill | $ 150 | $ 151 |
Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 150 | 151 |
Bauxite [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 2 | 2 |
Alumina [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 3 | 3 |
Corporate Segment [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 145 | $ 146 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill which is Included in Other Noncurret Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | ||
Goodwill | $ 150 | $ 151 |
Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 150 | 151 |
Corporate Segment [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment losses | 742 | 742 |
Corporate Segment [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 145 | 146 |
Bauxite [Member] | ||
Goodwill [Line Items] | ||
Segment reporting, goodwill | 48 | |
Bauxite [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 2 | 2 |
Alumina [Member] | ||
Goodwill [Line Items] | ||
Segment reporting, goodwill | 97 | |
Alumina [Member] | Other Noncurrent Assets [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 3 | $ 3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets [Line Items] | |||
Amortization expense related to the intangible assets | $ 19,000,000 | $ 12,000,000 | $ 12,000,000 |
Expected amortization for the year 2020 | 10,000,000 | ||
Expected amortization for the year 2021 | 10,000,000 | ||
Expected amortization for the year 2022 | 10,000,000 | ||
Expected amortization for the year 2023 | 10,000,000 | ||
Expected amortization for the year 2024 | 10,000,000 | ||
Alumina [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill impairment | 0 | ||
Bauxite [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | $ 287 | $ 281 |
Total amortizable intangible assets, Accumulated amortization | (235) | (224) |
Total amortizable intangible assets, Net carrying amount | 52 | 57 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | 240 | 237 |
Total amortizable intangible assets, Accumulated amortization | (216) | (211) |
Total amortizable intangible assets, Net carrying amount | 24 | 26 |
Patent and Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | 25 | 25 |
Total amortizable intangible assets, Accumulated amortization | (8) | (7) |
Total amortizable intangible assets, Net carrying amount | 17 | 18 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Gross carrying amount | 22 | 19 |
Total amortizable intangible assets, Accumulated amortization | (11) | (6) |
Total amortizable intangible assets, Net carrying amount | $ 11 | $ 13 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized discounts and deferred financing costs | $ (34) | $ (39) |
Total | 1,800 | 1,802 |
Less: amount due within one year | 1 | 1 |
Long-term debt, less amount due within one year | 1,799 | 1,801 |
6.75% Notes, due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 750 | 750 |
7.00% Notes, due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500 | 500 |
6.125% Notes, due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500 | 500 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 84 | $ 91 |
Debt - Principal maturities of
Debt - Principal maturities of long-term debt - Additional Information (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Principal amount of long-term debt maturing in year 2020 | $ 1 |
Principal amount of long-term debt maturing in year 2021 | 79 |
Principal amount of long-term debt maturing in year 2022 | 1 |
Principal amount of long-term debt maturing in year 2023 | 1 |
Principal amount of long-term debt maturing in year 2024 | $ 751 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 31, 2018 | Sep. 30, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Proceeds from issuance of public debt offering | $ 492,000,000 | $ 560,000,000 | $ 21,000,000 | ||
Debt instrument redemption price percentage | 50.00% | ||||
Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of public debt offering | $ 1,228,000,000 | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 500,000,000 | ||||
Senior notes, interest percentage | 6.125% | ||||
Proceeds from issuance of public debt offering | $ 492,000,000 | ||||
Debt instrument maturity date | 2028 | ||||
Debt instrument, frequency of periodic payment | semi-annually | ||||
Debt instrument, date of first required payment | Nov. 15, 2018 | ||||
Debt redemption description | ANHBV has the option to redeem the 2028 Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the 2028 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after May 2023 at a redemption price specified in the indenture (up to 103.063% of the principal amount plus any accrued and unpaid interest in each case). Also, the 2028 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2028 Notes repurchased, plus any accrued and unpaid interest on the 2028 Notes repurchased. | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption period | 30 days | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption period | 60 days | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | After May 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 103.063% | ||||
6.125% Senior Notes Due 2028 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | Change in Control [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 101.00% | ||||
6.75% Senior Notes Due 2024 [Member] | Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 750,000,000 | ||||
Senior notes, interest percentage | 6.75% | ||||
Debt instrument maturity date | 2024 | ||||
6.75% Senior Notes Due 2024 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 105.063% | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms November 1, 2016 through December 31, 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | $ 38,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | 38,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | 50,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | 50,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Debt Covenant Terms January One Two Thousand And Twenty One Through September Thirty Two Thousand And Twenty Six [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | 75,000,000 | ||||
7% Senior Notes Due 2026 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of dividend restriction | $ 250,000,000 | ||||
Debt convenant percentage of assets | 1.50% | ||||
7% Senior Notes Due 2026 [Member] | Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 500,000,000 | ||||
Senior notes, interest percentage | 7.00% | ||||
Debt instrument maturity date | 2026 | ||||
7% Senior Notes Due 2026 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 103.50% | ||||
Notes 2024 and 2026 [Member] | Alcoa Nederland Holding BV [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt redemption description | ANBHV has the option to redeem the Notes on at least 30 days, but not more than 60 days, prior notice to the holders of the Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after September 2019, in the case of the 2024 Notes, or after September 2021, in the case of the 2026 Notes, at a redemption price specified in the indenture (up to 105.063% of the principal amount for the 2024 Notes and up to 103.500% of the principal amount of the 2026 Notes, plus any accrued and unpaid interest in each case). Also, the Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased, plus any accrued and unpaid interest on the Notes repurchased. | ||||
Notes 2024 and 2026 [Member] | Alcoa Nederland Holding BV [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption period | 30 days | ||||
Notes 2024 and 2026 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption period | 60 days | ||||
Notes 2024 and 2026 [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | Change in Control [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument redemption price percentage | 101.00% |
Debt (Credit Facility) - Additi
Debt (Credit Facility) - Additional Information (Detail) kr in Billions | Oct. 25, 2019USD ($) | Oct. 02, 2019NOK (kr) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017 | Nov. 21, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Principal amount of debt | $ 1,800,000,000 | $ 1,802,000,000 | ||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maturity date | Nov. 21, 2023 | |||||
Line of credit facility, outstanding borrowings | $ 1,500,000,000 | |||||
Letters of credit | $ 0 | $ 0 | ||||
Percentage of equity interest in foreign subsidiaries pledged as security to secured debt | 65.00% | |||||
Revolving credit facility, covenant description | The Second Amended Revolving Credit Agreement also includes financial covenants requiring the maintenance of a specified interest expense coverage ratio of not less than 5.00 to 1.00, and a leverage ratio for any period of four consecutive fiscal quarters that is not greater than 2.50 to 1.00 (2.00 to 1.00 beginning on and subsequent to the Collateral Release Date, may be increased to a level not higher than 2.25 to 1.00 under certain circumstances). As of December 31, 2019, maximum additional borrowing capacity to remain in compliance with these covenants was $1,200. As of December 31, 2019 and 2018, Alcoa Corporation was in compliance with all such covenants. | |||||
Leverage ratio, covenants requirements | 150.00% | 120.00% | 130.00% | |||
Line of credit facility, maximum additional borrowings | $ 1,200,000,000 | |||||
Incremental amount of convenant, maximum | $ 1,000,000,000 | |||||
Debt convenant percentage of assets | 6.00% | |||||
Restricted payments negative covenant, maximum | $ 100,000,000 | |||||
Investment negative covenant, maximum | 400,000,000 | |||||
Thresholds for restricted payments negative covenants | 250,000,000 | |||||
Thresholds for investments negative covenants | $ 200,000,000 | |||||
Percentage of unused base amount used in the succeeding fiscal year | 50.00% | |||||
Percentage of unused portion of credit facility | 50.00% | |||||
Annual share repurchase limit | $ 100,000,000 | |||||
Principal amount of debt | 0 | $ 0 | ||||
Amounts borrowed under the credit facility | $ 0 | $ 0 | ||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense coverage ratio required to be maintained | 5 | |||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio, covenants requirements | 250.00% | |||||
Leverage ratio, maximum possible increase | 225.00% | 200.00% | ||||
Annual share repurchase limit | $ 25,000,000 | |||||
Amount of dividend restriction | $ 100,000,000 | |||||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum outstanding borrowings | 750,000,000 | |||||
Letters of credit sublimit under credit facility | 400,000,000 | |||||
Credit facility, interest rate description | Loans will bear interest at a rate per annum equal to an applicable margin plus, at ANHBV’s option, either (a) an adjusted LIBOR rate or (b) a base rate determined by reference to the highest of (1) the U.S. prime rate as published in the Wall Street Journal (previously the prime rate of JPMorgan Chase Bank, N.A.), (2) the greater of the federal funds effective rate and the overnight bank funding rate, plus 0.5%, and (3) the one month adjusted LIBOR rate plus 1% per annum. | |||||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum outstanding borrowings | $ 750,000,000 | |||||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Standard and Poor's BBB- Rating [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Reduction of applicable margin on libor and base rate loans upon achievement of certain ratings | 0.25% | |||||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Moody's Investor Service Baa3 Rating [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Reduction of applicable margin on libor and base rate loans upon achievement of certain ratings | 0.25% | |||||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, margin over variable rate | 1.00% | |||||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Federal Funds Effective Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, margin over variable rate | 0.50% | |||||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee paid to maintain credit facility | 0.20% | 0.225% | ||||
Applicable margin on LIBOR loans | 1.50% | 1.75% | ||||
Applicable margin on base rate loans | 0.50% | 0.75% | ||||
Revolving Credit Facility [Member] | Alcoa Nederland Holding BV [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee paid to maintain credit facility | 0.425% | 0.45% | ||||
Principal amount of debt | $ 500,000,000 | |||||
Applicable margin on LIBOR loans | 2.25% | 2.50% | ||||
Applicable margin on base rate loans | 1.25% | 1.50% | ||||
One-year, Multicurrency Agreement [Member] | Revolving Credit Facility [Member] | Alcoa Norway ANS [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum outstanding borrowings | kr 1.3 | $ 147,000,000 | ||||
Line of credit facility, maturity date | Oct. 2, 2020 | |||||
Commitment fee paid to maintain credit facility | 0.465% | |||||
Line of credit facility, frequency of payments | quarterly | |||||
Line of credit facility, date of required payment | Jan. 2, 2020 | |||||
Credit facility, interest rate description | The interest rate on outstanding NOK loan balances is 1.55% per annum plus the Norwegian Interbank Offered Rate (NIBOR); the interest rate on outstanding US dollar loans is 1.65% per annum plus LIBOR | |||||
Line of credit facility, outstanding borrowings | $ 0 | |||||
One-year, Multicurrency Agreement [Member] | Revolving Credit Facility [Member] | Alcoa Norway ANS [Member] | NIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, margin over variable rate | 1.55% | |||||
One-year, Multicurrency Agreement [Member] | Revolving Credit Facility [Member] | Alcoa Norway ANS [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, margin over variable rate | 1.65% | |||||
Three-year Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum outstanding borrowings | $ 120,000,000 | |||||
Line of credit facility, outstanding borrowings | $ 0 | |||||
Assets (other than the receivables) pledged as collateral | 0 | |||||
Fee amount | $ 1,000,000 | |||||
Line of credit facility, commitment used and unused capacity, description | Fees paid upon closure of the agreement were approximately $1, fees associated with the unused portion of the facility range from 25 to 35 basis points of the unused commitment on a 360 day base year, and fees applied to any used portions of the facility are 85 basis points of the used commitment on a 360 day base year. | |||||
Line of credit facility, used capacity, commitment fee | 0.85% | |||||
Three-year Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, unused capacity, commitment fee | 0.25% | |||||
Three-year Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, unused capacity, commitment fee | 0.35% | |||||
Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, outstanding borrowings | $ 100,000,000 | |||||
Letter of Credit [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit | 17,000,000 | $ 21,000,000 | ||||
Principal amount of debt | $ 17,000,000 | $ 21,000,000 |
Preferred and Common Stock - Ad
Preferred and Common Stock - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2018 | |
Class of Stock [Line Items] | |||||
Preferred stock, authorized (in shares) | 100,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||||
Preferred stock, issued (in shares) | 0 | 0 | 0 | ||
Common stock shares authorized | 750,000,000 | ||||
Common stock par value | $ 0.01 | ||||
Common stock shares issued | 184,770,249 | 185,580,166 | 184,770,249 | ||
Common stock shares outstanding | 184,770,249 | 185,580,166 | 184,770,249 | ||
Common stock were reserved for future issuance | 25,167,229 | ||||
Common stock repurchase program, authorized amount | $ 200,000,000 | ||||
Repurchase of common stock shares | 0 | ||||
Common stock dividends declared during period | $ 0 | $ 0 | $ 0 | ||
Stock based compensation expense | 30,000,000 | 35,000,000 | 24,000,000 | ||
Stock-based compensation expense capitalized | $ 0 | $ 0 | $ 0 | ||
Fair value of stock options granted | $ 10.86 | $ 21.32 | $ 12.45 | ||
Volatility | 41.74% | ||||
Average risk-free interest rate | 2.77% | ||||
Dividend yield | 0.00% | ||||
Annual pre- and post-vesting forfeitures | 4.00% | ||||
Exercise behavior | 61.00% | ||||
Life (years) | 5 years 10 months 24 days | ||||
Number of options, Outstanding | 2,246,563 | ||||
Number of options, Outstanding weighted average remaining contractual life | 5 years 4 months 24 days | ||||
Total intrinsic value of options outstanding | $ 3,000,000 | ||||
Stock options vested and exercisable | 1,559,040 | ||||
Weighted average exercise price, vested and exercisable | $ 26.19 | ||||
Cash received from option exercises | $ 2,000,000 | $ 23,000,000 | $ 43,000,000 | ||
Total intrinsic value of options exercised | $ 1,000,000 | $ 26,000,000 | $ 24,000,000 | ||
Number of options, Vested and expected to vestweighted average remaining contractual life | 3 years 11 months 23 days | ||||
Total intrinsic value of options vested and exercisable | $ 3,000,000 | ||||
Unrecognized compensation costs on non-vested stock option grants (pretax) | $ 29,000,000 | ||||
Unrecognized compensation costs on non-vested awards, weighted average period of recognition in years | 1 year 7 months 6 days | ||||
Minimum [Member] | |||||
Class of Stock [Line Items] | |||||
Stock based compensation expense, stock units percentage | 80.00% | 80.00% | 80.00% | ||
Maximum [Member] | |||||
Class of Stock [Line Items] | |||||
Stock based compensation expense, stock units percentage | 90.00% | 90.00% | 90.00% | ||
Stock Units [Member] | |||||
Class of Stock [Line Items] | |||||
Stock granted, Fair value | $ 27.87 | ||||
Number of shares withheld to meet statutory tax requirements | 209,550 | ||||
Stock Units [Member] | Cliff Vest [Member] | |||||
Class of Stock [Line Items] | |||||
Vesting rights percentage | 0.3333% | ||||
Restricted Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Volatility | 42.04% | ||||
Average risk-free interest rate | 2.57% | ||||
Stock granted, Fair value | $ 35.70 | $ 73.13 | |||
Restricted Stock [Member] | Standard & Poor's 500 [Member] | |||||
Class of Stock [Line Items] | |||||
Volatility | 12.64% | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued for employee stock-based compensation plans | 809,917 | 1,293,336 | 2,269,718 | ||
Repurchase of common stock shares | 1,723,800 | ||||
Repurchase of common stock value | $ 50,000,000 | ||||
Stock Options [Member] | |||||
Class of Stock [Line Items] | |||||
Number of options, Outstanding | 1,959,927 | 2,246,563 | 1,959,927 | ||
Stock Options [Member] | Grade Vest [Member] | |||||
Class of Stock [Line Items] | |||||
Vesting rights percentage | 0.3333% | ||||
Common stock service period | 3 years | ||||
Common stock contractual term | 10 years |
Preferred and Common Stock - Sc
Preferred and Common Stock - Schedule of Activity for Stock Options and Stock Units (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |
Number of options, Outstanding end of year | 2,246,563 |
Stock Units [Member] | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |
Number of units, Outstanding beginning of year | 2,305,145 |
Number of units, Granted | 1,145,099 |
Number of units, Exercised | 0 |
Number of units, Converted | (924,826) |
Number of units, Expired or forfeited | (216,309) |
Number of units, Performance share adjustment | (181,498) |
Number of units, Outstanding end of year | 2,127,611 |
Weighted average FMV per unit, Outstanding beginning of year | $ / shares | $ 32.75 |
Stock granted, Fair value | $ / shares | 27.87 |
Weighted average FMV per unit, Exercised | $ / shares | 0 |
Weighted average FMV per unit, Converted | $ / shares | 15.22 |
Weighted average FMV per unit, Expired or forfeited | $ / shares | 35.68 |
Weighted average FMV per unit, Performance share adjustment | $ / shares | 39.62 |
Weighted average FMV per unit, Outstanding, end of year | $ / shares | $ 36.85 |
Stock Options [Member] | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |
Number of options, Outstanding beginning of year | 1,959,927 |
Number of options, Granted | 519,900 |
Number of options, Exercised | (96,712) |
Number of options, Converted | 0 |
Number of options, Expired or forfeited | (136,552) |
Number of options, Performance share adjustment | 0 |
Number of options, Outstanding end of year | 2,246,563 |
Weighted average exercise price, Outstanding beginning of year | $ / shares | $ 28.41 |
Weighted average exercise price, granted | $ / shares | 28.01 |
Weighted average exercise price, exercised | $ / shares | 18.05 |
Weighted average exercise price, Converted | $ / shares | 0 |
Weighted average exercise price, Expired or forfeited | $ / shares | 34.81 |
Weighted average exercise price, Performance share adjustment | $ / shares | 0 |
Weighted average exercise price Outstanding, end of year | $ / shares | $ 28.38 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Additional Information (Detail) | Nov. 30, 2019USD ($)Participant | Jan. 17, 2018Employee | Dec. 31, 2019USD ($)EmployeeParticipant | Jul. 31, 2019USD ($)Participant | Jun. 30, 2019USD ($)Participant | Sep. 30, 2018USD ($)Participant | Aug. 31, 2018USD ($)ParticipantRetiree | May 31, 2018USD ($) | Apr. 30, 2018USD ($)ParticipantRetiree | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)EmployeeParticipant | Dec. 31, 2018USD ($)Participant | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 18,200 | 18,200 | 20,600 | ||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 74,000,000 | $ 341,000,000 | |||||||||||
Company's contribution | 725,000,000 | ||||||||||||
Fair value of plan assets | $ 5,007,000,000 | $ 5,007,000,000 | $ 4,591,000,000 | ||||||||||
Health care cost trend rate assumed for next year | 5.50% | 5.50% | 5.50% | 5.50% | |||||||||
Cash contribution to pension plans | $ 173,000,000 | $ 992,000,000 | $ 106,000,000 | ||||||||||
Additions to debt (original maturities greater than three months | $ 492,000,000 | 560,000,000 | 21,000,000 | ||||||||||
Cash on hand | 128,000,000 | ||||||||||||
Maturity of debt instrument | 10 years | ||||||||||||
Expenses related to saving and investment plans | 68,000,000 | 69,000,000 | 65,000,000 | ||||||||||
Expenses related to member-funded pension plan | $ 4,000,000 | 4,000,000 | |||||||||||
Equities [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Fair value of plan assets | $ 2,010,000,000 | $ 2,010,000,000 | 1,667,000,000 | ||||||||||
Defined benefit plan, target asset allocation percentage | 30.00% | 30.00% | |||||||||||
Fixed Income Securities [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Fair value of plan assets | $ 2,470,000,000 | $ 2,470,000,000 | 2,344,000,000 | ||||||||||
Defined benefit plan, target asset allocation percentage | 50.00% | 50.00% | |||||||||||
Other Investments [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Fair value of plan assets | $ 527,000,000 | $ 527,000,000 | 580,000,000 | ||||||||||
Defined benefit plan, target asset allocation percentage | 20.00% | 20.00% | |||||||||||
Scenario Forecast [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Expected long term rate of return on plan assets | 6.28% | ||||||||||||
Expected minimum required cash contribution to pension plans, next year | $ 295,000,000 | ||||||||||||
Maximum [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Weighted average discount rate yield curve | 11 years | ||||||||||||
United States [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Company's contribution | 620,000,000 | ||||||||||||
Benefit obligation | $ 4,532,000,000 | $ 4,532,000,000 | 4,246,000,000 | ||||||||||
Fair value of plan assets | 3,429,000,000 | 3,429,000,000 | 3,160,000,000 | ||||||||||
Funded status | $ (1,103,000,000) | $ (1,103,000,000) | (1,086,000,000) | ||||||||||
United States [Member] | Scenario Forecast [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Expected minimum required cash contribution to pension plans, next year | $ 250,000,000 | ||||||||||||
Canada [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Company's contribution | $ 105,000,000 | ||||||||||||
2019 Plan Action# 1 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Collective bargaining agreement term | 6 years | ||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 700 | ||||||||||||
Percentage of employers contribution in defined benefit plans | 12.00% | ||||||||||||
Additional contributions in defined benefit plans | $ 2,000,000 | ||||||||||||
Period to improve financial position of the target benefit plan | 3 years | ||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 700 | 700 | |||||||||||
2019 Plan Action # 2 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Collective bargaining agreement term | 6 years | ||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 900 | ||||||||||||
Percentage of employers contribution in defined benefit plans | 12.00% | ||||||||||||
Additional contributions in defined benefit plans | $ 2,000,000 | ||||||||||||
Period to improve financial position of the target benefit plan | 5 years | ||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 900 | 900 | |||||||||||
2019 Plan Action# 3 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Lump sum settlements in plan assets on pension and other postretirement benefits | $ 112,000,000 | ||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 1,700 | 1,700 | 1,700 | ||||||||||
Lump sum settlements in plan obligations on pension and other postretirement benefits | $ 138,000,000 | ||||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 66,000,000 | ||||||||||||
2019 Plan Action# 4 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 6,000 | 6,000 | |||||||||||
2019 Plan Action# 5 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 8,900 | 8,900 | |||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 14,000,000 | $ 8,000,000 | |||||||||||
2018 Plan Action# 1 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Number of employees affected the change in defined benefit plans | Employee | 800 | ||||||||||||
Percentage of employers contribution in defined benefit plans | 3.00% | ||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 800 | ||||||||||||
2018 Plan Action# 2 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 700 | ||||||||||||
2018 Plan Action# 3 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 2,100 | ||||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 167,000,000 | ||||||||||||
Defined benefit plan, number of participants reduced | Retiree | 2,100 | ||||||||||||
Benefit obligation of retirement plans | $ 560,000,000 | ||||||||||||
Defined benefit pension plans, transaction fee | 23,000,000 | ||||||||||||
Company's contribution | $ 89,000,000 | ||||||||||||
Defined benefit plan, number of participants before transaction | Participant | 3,500 | ||||||||||||
2018 Plan Action# 3 [Member] | Canada [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Company's contribution | $ 89,000,000 | ||||||||||||
2018 Plan Action# 4 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Lump sum settlements in plan assets on pension and other postretirement benefits | $ 85,000,000 | ||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 11,500 | ||||||||||||
Lump sum settlements in plan obligations on pension and other postretirement benefits | $ 75,000,000 | ||||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 230,000,000 | ||||||||||||
Defined benefit plan, number of participants reduced | Retiree | 10,500 | ||||||||||||
Benefit obligation of retirement plans | $ 287,000,000 | ||||||||||||
Defined benefit pension plans, transaction fee | $ 10,000,000 | ||||||||||||
Defined benefit plan, number of participants before transaction | Participant | 43,400 | ||||||||||||
Defined benefit plan, additional number of participants reduced | Retiree | 1,000 | ||||||||||||
2018 Plan Action# 5 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Number of employees affected the change in defined benefit plans | Participant | 5,500 | 5,500 | |||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ 23,000,000 | $ (56,000,000) | |||||||||||
Pension Benefits [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Number of employees covered under defined benefit plans | Employee | 40,000 | 40,000 | |||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ (73,000,000) | (410,000,000) | $ (5,000,000) | ||||||||||
Benefit obligation | $ 6,532,000,000 | 6,532,000,000 | 5,997,000,000 | ||||||||||
Funded status | $ 1,517,000,000 | $ 1,517,000,000 | $ 1,387,000,000 | ||||||||||
Rate of compensation increase | 3.25% | 3.25% | 3.26% | ||||||||||
Expected long term rate of return on plan assets | 6.59% | 6.89% | 7.47% | ||||||||||
Pension Benefits [Member] | Scenario Forecast [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Rate of compensation increase | 3.25% | ||||||||||||
Period of percentage increase in rate of compensation | 5 years | ||||||||||||
Pension Benefits [Member] | 2019 Plan Action # 2 [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Company contributions to the existing defined benefit plan in 2020 | $ 5,000,000 | $ 5,000,000 | |||||||||||
Other Postretirement Benefits [Member] | |||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||
Number of employees covered under defined benefit plans | Employee | 39,000 | 39,000 | |||||||||||
Settlement gain (charge) on net pension and other postretirement benefits | $ (8,000,000) | $ 56,000,000 | |||||||||||
Company's contribution | 7,000,000 | 8,000,000 | $ 8,000,000 | ||||||||||
Funded status | $ 848,000,000 | $ 848,000,000 | $ 973,000,000 |
Pension and Other Postretirem_4
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 | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($)Participant | Sep. 30, 2018USD ($)Participant | Dec. 31, 2019USD ($)Participant | Dec. 31, 2018USD ($)Participant | Nov. 30, 2019Participant | Jun. 30, 2019 | May 31, 2019 | Jul. 31, 2018 | Mar. 31, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 18,200 | 18,200 | 20,600 | ||||||||
Increase (decrease) to accrued pension benefits liability | $ 49 | $ (143) | |||||||||
Decrease to accrued other postretirement benefits liability | (164) | (93) | |||||||||
Curtailments | 38 | (23) | |||||||||
Settlement charge | $ 74 | $ 341 | |||||||||
2019 Plan Action# 1 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 700 | 700 | |||||||||
Weighted average discount rate | 3.85% | 3.15% | |||||||||
Plan remeasurement date | May 31, 2019 | ||||||||||
Increase (decrease) to accrued pension benefits liability | $ 52 | ||||||||||
Curtailments | $ 38 | ||||||||||
2019 Plan Action # 2 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 900 | 900 | |||||||||
Weighted average discount rate | 3.80% | 3.00% | |||||||||
Plan remeasurement date | Jun. 30, 2019 | ||||||||||
Increase (decrease) to accrued pension benefits liability | $ 23 | ||||||||||
2019 Plan Action# 3 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 1,700 | 1,700 | 1,700 | ||||||||
Plan remeasurement date | Dec. 31, 2019 | ||||||||||
Increase (decrease) to accrued pension benefits liability | $ (26) | ||||||||||
Settlement charge | $ 66 | ||||||||||
2019 Plan Action# 4 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 6,000 | 6,000 | |||||||||
Plan remeasurement date | Dec. 31, 2019 | ||||||||||
Decrease to accrued other postretirement benefits liability | $ (108) | ||||||||||
2019 Plan Action# 5 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 8,900 | 8,900 | |||||||||
Plan remeasurement date | Dec. 31, 2019 | ||||||||||
Decrease to accrued other postretirement benefits liability | $ (56) | ||||||||||
Settlement charge | $ 14 | $ 8 | |||||||||
2018 Plan Action# 1 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 800 | ||||||||||
Weighted average discount rate | 3.80% | 3.65% | |||||||||
Plan remeasurement date | Jan. 31, 2018 | ||||||||||
Increase (decrease) to accrued pension benefits liability | $ (57) | ||||||||||
Curtailments | $ 5 | ||||||||||
2018 Plan Action# 2 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 700 | ||||||||||
Weighted average discount rate | 3.43% | 3.29% | |||||||||
Plan remeasurement date | Jan. 31, 2018 | ||||||||||
Decrease to accrued other postretirement benefits liability | $ (7) | ||||||||||
Curtailments | $ (28) | ||||||||||
2018 Plan Action# 3 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 2,100 | ||||||||||
Weighted average discount rate | 3.60% | 3.43% | |||||||||
Plan remeasurement date | Mar. 31, 2018 | ||||||||||
Increase (decrease) to accrued pension benefits liability | $ 24 | ||||||||||
Settlement charge | $ 167 | ||||||||||
2018 Plan Action# 4 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 11,500 | ||||||||||
Weighted average discount rate | 4.39% | 3.70% | |||||||||
Plan remeasurement date | Jul. 31, 2018 | ||||||||||
Increase (decrease) to accrued pension benefits liability | $ (110) | ||||||||||
Settlement charge | $ 230 | ||||||||||
2018 Plan Action# 5 [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Number of affected plan participants | Participant | 5,500 | 5,500 | |||||||||
Weighted average discount rate | 4.35% | 3.61% | |||||||||
Plan remeasurement date | Jul. 31, 2018 | ||||||||||
Decrease to accrued other postretirement benefits liability | $ (86) | ||||||||||
Settlement charge | $ 23 | $ (56) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Schedule of Obligations and Funded Status (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements | $ (74) | $ (341) | |
Fair value of plan assets at beginning of year | 4,591 | ||
Company's contribution | 725 | ||
Fair value of plan assets at end of year | 5,007 | 4,591 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 5,997 | ||
Service cost | 48 | 54 | $ 71 |
Interest cost | 221 | 227 | 244 |
Settlements | 73 | 410 | 5 |
Benefit obligation at end of year | 6,532 | 5,997 | |
Funded status | 1,517 | 1,387 | |
Less: Amounts attributed to joint venture partners | (34) | (33) | |
Net funded status | 1,483 | 1,354 | |
Noncurrent assets | 33 | 63 | |
Current liabilities | (11) | (10) | |
Noncurrent liabilities | (1,505) | (1,407) | |
Net amount recognized | (1,483) | (1,354) | |
Net actuarial loss | 3,364 | 3,261 | |
Prior service cost (benefit) | 5 | 21 | |
Total, before tax effect | 3,369 | 3,282 | |
Less: Amounts attributed to joint venture partners | 42 | 40 | |
Net amount recognized, before tax effect | 3,327 | 3,242 | |
Net actuarial loss (benefit) | 350 | 132 | |
Amortization of accumulated net actuarial (loss) benefit | (247) | (614) | |
Prior service cost (benefit) | 26 | (1) | |
Amortization of prior service (cost) benefit | (42) | (13) | |
Total, before tax effect | 87 | (496) | |
Less: Amounts attributed to joint venture partners | 2 | (5) | |
Net amount recognized, before tax effect | 85 | (491) | |
Pension Benefits [Member] | Change In Benefit Obligation [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 5,997 | 7,639 | |
Service cost | 49 | 60 | |
Interest cost | 226 | 232 | |
Amendments | 26 | ||
Actuarial losses (gains) | 746 | (346) | |
Settlements | (177) | (1,009) | |
Curtailments | (22) | ||
Benefits paid | (379) | (407) | |
Foreign currency translation impact | 44 | (150) | |
Benefit obligation at end of year | 6,532 | 5,997 | 7,639 |
Pension Benefits [Member] | Change In Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements | (177) | (1,030) | |
Benefits paid | (379) | (403) | |
Foreign currency translation impact | 31 | (127) | |
Fair value of plan assets at beginning of year | 4,610 | 5,322 | |
Actual return on plan assets | 763 | (129) | |
Company's contribution | 175 | 996 | |
Participant contributions | 11 | 12 | |
Administrative expenses | (19) | (31) | |
Fair value of plan assets at end of year | 5,015 | 4,610 | 5,322 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 5 | 5 |
Interest cost | 36 | 34 | 38 |
Settlements | 8 | (56) | |
Company's contribution | 7 | 8 | 8 |
Funded status | 848 | 973 | |
Net funded status | 848 | 973 | |
Current liabilities | (99) | (105) | |
Noncurrent liabilities | (749) | (868) | |
Net amount recognized | (848) | (973) | |
Net actuarial loss | 261 | 176 | |
Prior service cost (benefit) | (154) | (4) | |
Total, before tax effect | 107 | 172 | |
Net amount recognized, before tax effect | 107 | 172 | |
Net actuarial loss (benefit) | 103 | (88) | |
Amortization of accumulated net actuarial (loss) benefit | (18) | (17) | |
Prior service cost (benefit) | (150) | (62) | |
Amortization of prior service (cost) benefit | 88 | ||
Total, before tax effect | (65) | (79) | |
Net amount recognized, before tax effect | (65) | (79) | |
Other Postretirement Benefits [Member] | Change In Benefit Obligation [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | 973 | 1,218 | |
Service cost | 4 | 5 | |
Interest cost | 36 | 34 | |
Amendments | (150) | (5) | |
Actuarial losses (gains) | 103 | (88) | |
Settlements | (14) | (57) | |
Benefits paid | (111) | (140) | |
Medicare Part D subsidy receipts | 7 | 7 | |
Foreign currency translation impact | (1) | ||
Benefit obligation at end of year | $ 848 | $ 973 | $ 1,218 |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Schedule of Pension Plan Benefit Obligations (Detail) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 6,532 | $ 5,997 |
Accumulated benefit obligation | 6,324 | 5,792 |
Projected benefit obligation | 6,014 | 5,502 |
Fair value of plan assets | 4,463 | 4,051 |
Accumulated benefit obligation | 5,873 | 5,380 |
Fair value of plan assets | $ 4,463 | $ 4,051 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements | $ (74) | $ (341) | |
Curtailments | 38 | (23) | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 48 | 54 | $ 71 |
Interest cost | 221 | 227 | 244 |
Expected return on plan assets(3) | (325) | (341) | (398) |
Recognized net actuarial loss(3) | 171 | 198 | 185 |
Amortization of prior service cost (benefit)(3) | 4 | 8 | 9 |
Settlements | 73 | 410 | 5 |
Curtailments | 38 | 5 | |
Special termination benefits | 3 | ||
Net periodic benefit cost | 230 | 561 | 119 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 5 | 5 |
Interest cost | 36 | 34 | 38 |
Recognized net actuarial loss(3) | 10 | 13 | 13 |
Amortization of prior service cost (benefit)(3) | (6) | ||
Settlements | 8 | (56) | |
Curtailments | (28) | ||
Net periodic benefit cost | $ 58 | $ (32) | $ 50 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Expense related to pension and other postretirement benefits | $ 725 | |||
2019 Action Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements and lump sum benefits | $ (74) | |||
Settlements and lump sum benefits, addition | (7) | |||
2018 Action Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements and lump sum benefits | $ (341) | |||
Settlements and lump sum benefits, addition | (13) | |||
United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expense related to pension and other postretirement benefits | 620 | |||
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 230 | 561 | $ 119 | |
Pension Benefits [Member] | United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 358 | 155 | 74 | |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 58 | (32) | 50 | |
Expense related to pension and other postretirement benefits | $ 7 | $ 8 | $ 8 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Schedule of Amounts Expected to be Recognized in Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | $ 171 | $ 198 | $ 185 | |
Amortization of prior service cost (benefit)(3) | 4 | 8 | 9 | |
Pension Benefits [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | $ 202 | |||
Amortization of prior service cost (benefit)(3) | 1 | |||
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | $ 10 | $ 13 | 13 | |
Amortization of prior service cost (benefit)(3) | $ (6) | |||
Other Postretirement Benefits [Member] | Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss recognition | 17 | |||
Amortization of prior service cost (benefit)(3) | $ (14) |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.12% | 4.21% | |
Rate of compensation increase | 3.25% | 3.26% | |
Discount rate | 3.89% | 3.59% | 3.61% |
Expected long-term rate of return on plan assets | 6.59% | 6.89% | 7.47% |
Rate of compensation increase | 3.26% | 3.28% | 3.61% |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.12% | 4.25% | |
Discount rate | 3.94% | 3.18% | 3.30% |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Schedule of Assumed Health Care Cost Trend Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Health care cost trend rate assumed for next year | 5.50% | 5.50% | 5.50% |
Rate to which the cost trend rate gradually declines | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the rate at which it is assumed to remain | 2023 | 2022 | 2021 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 100.00% | 100.00% |
Fixed Income Securities [Member] | Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 49.00% | 51.00% |
Other Investments [Member] | Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 11.00% | 13.00% |
Equity Securities [Member] | Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 40.00% | 36.00% |
Minimum [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 10.00% | |
Minimum [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 10.00% | |
Minimum [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 0.00% | |
Maximum [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 60.00% | |
Maximum [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 65.00% | |
Maximum [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 35.00% |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits - Schedule of Fair Value of Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | $ 5,007 | $ 4,591 |
Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,010 | 1,667 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,825 | 1,475 |
Long/Short Equity Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 8 | 6 |
Private Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 177 | 186 |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,470 | 2,344 |
Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,149 | 1,949 |
Cash and Cash Equivalent Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 316 | 381 |
Fixed Income, Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 5 | 14 |
Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 527 | 580 |
Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 495 | 548 |
Other Investments, Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 32 | 32 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,732 | 1,873 |
Level 1 [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 612 | 662 |
Level 1 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 612 | 662 |
Level 1 [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 912 | 981 |
Level 1 [Member] | Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 889 | 925 |
Level 1 [Member] | Cash and Cash Equivalent Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 23 | 56 |
Level 1 [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 208 | 230 |
Level 1 [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 208 | 230 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 705 | 711 |
Level 2 [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 705 | 711 |
Level 2 [Member] | Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 700 | 697 |
Level 2 [Member] | Fixed Income, Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 5 | 14 |
Net Asset Value [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 2,570 | 2,007 |
Net Asset Value [Member] | Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,398 | 1,005 |
Net Asset Value [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 1,213 | 813 |
Net Asset Value [Member] | Long/Short Equity Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 8 | 6 |
Net Asset Value [Member] | Private Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 177 | 186 |
Net Asset Value [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 853 | 652 |
Net Asset Value [Member] | Intermediate and Long Duration Government Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 560 | 327 |
Net Asset Value [Member] | Cash and Cash Equivalent Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 293 | 325 |
Net Asset Value [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 319 | 350 |
Net Asset Value [Member] | Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | 287 | 318 |
Net Asset Value [Member] | Other Investments, Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension and other postretirement plans' assets | $ 32 | $ 32 |
Pension and Other Postretire_14
Pension and Other Postretirement Benefits - Schedule of Fair Value of Pension Plan Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation And Retirement Disclosure [Abstract] | ||
Net receivables which represents assets related to divested businesses to be transferred to the buyers | $ 8 | $ 19 |
Pension and Other Postretire_15
Pension and Other Postretirement Benefits - Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 435 |
2021 | 435 |
2022 | 430 |
2023 | 430 |
2024 | 425 |
2025 through 2029 | 2,020 |
Total benefit payments | 4,175 |
Gross Other Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 105 |
2021 | 95 |
2022 | 90 |
2023 | 90 |
2024 | 70 |
2025 through 2029 | 255 |
Total benefit payments | 705 |
Medicare Part D Subsidy Receipts [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 5 |
2021 | 5 |
2022 | 5 |
2023 | 5 |
2024 | 5 |
2025 through 2029 | 15 |
Total benefit payments | 40 |
Net Other Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 100 |
2021 | 90 |
2022 | 85 |
2023 | 85 |
2024 | 65 |
2025 through 2029 | 240 |
Total benefit payments | $ 665 |
Derivatives and Other Financi_3
Derivatives and Other Financial Instruments - Additional Information (Detail) kt in Thousands, $ in Millions | Dec. 31, 2018MWhDerivativekt | Aug. 31, 2017Smelter | Dec. 31, 2019USD ($)MWhMemberSmelterkt | Dec. 31, 2018USD ($)Derivative | Dec. 31, 2017USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Minimum members required for strategic risk management committee | Member | 3 | ||||
Realized gain (loss) cash flow hedges | $ (22) | $ (77) | |||
Other derivative contracts estimated term of quoted market prices, in years | 10 years | ||||
Number of smelters | Smelter | 1 | ||||
Level 3 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of smelters | Smelter | 7 | ||||
Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | $ (26) | (14) | |||
Level 3 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | $ 42 | (38) | $ (82) | ||
Energy Contracts [Member] | Other Comprehensive Loss [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Forecasted energy purchases in megawatt hours | MWh | 6,348,276 | 3,891,096 | |||
Sales [Member] | Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | (15) | ||||
Sales [Member] | Level 3 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | (113) | ||||
Cost of Goods Sold [Member] | Level 3 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | 31 | ||||
Other Expenses Net [Member] | Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Net gain (loss) of derivative instruments | (27) | ||||
Other Expenses Net [Member] | Mark to Market Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Net gain (loss) of derivative instruments | (24) | ||||
Other Expenses Net [Member] | Level 3 Power Related Derivative [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Net gain (loss) of derivative instruments | (17) | ||||
Other Expenses Net [Member] | Level 3 Embedded Credit Derivative [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Net gain (loss) of derivative instruments | 3 | ||||
Other Expenses Net [Member] | Level 3 Financial Contract [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Net gain (loss) of derivative instruments | $ 17 | ||||
Derivatives Designated as Hedging Instruments [Member] | Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | $ (26) | ||||
Derivatives Designated as Hedging Instruments [Member] | Financial Contracts [Member] | Cash Flow Hedging [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Amount of gain (loss) expected to be recognized into earnings over the next 12 months | $ 57 | ||||
Derivatives Designated as Hedging Instruments [Member] | Power Related Derivative | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Aluminum forecast sales | kt | 2,508 | 2,347 | |||
Derivatives Designated as Hedging Instruments [Member] | Power Related Derivative | Cash Flow Hedging [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Amount of gain (loss) expected to be recognized into earnings over the next 12 months | $ (47) | ||||
Derivatives Designated as Hedging Instruments [Member] | Sales [Member] | Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | (18) | $ (14) | |||
Derivatives Designated as Hedging Instruments [Member] | Cost of Goods Sold [Member] | Level 1 and 2 Derivative Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Realized gain (loss) cash flow hedges | $ (8) | ||||
Derivatives Not Designated as Hedging Instruments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of derivative instruments | Derivative | 3 | 3 |
Derivatives and Other Financi_4
Derivatives and Other Financial Instruments - Schedule of Detail for Level 1, 2 and 3 Derivatives (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative Assets | $ 74 | $ 153 | |
Derivative Liabilities | 615 | 289 | |
Derivative Assets Current | 59 | 73 | |
Derivative Liabilities Current | 67 | 82 | |
Derivative Assets Noncurrent | 18 | 82 | |
Derivative Liabilities Noncurrent | 581 | 261 | |
Unrealized gain (loss) recognized in Other comprehensive (loss) income | (437) | 803 | |
Realized gain (loss) reclassed from Other comprehensive (loss) income to earnings | (22) | (77) | |
Non-controlling and Equity Interest [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unrealized gain (loss) recognized in Other comprehensive (loss) income | (38) | 5 | |
Realized gain (loss) reclassed from Other comprehensive (loss) income to earnings | (38) | (25) | |
Level 1 and 2 Derivative Instruments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative Assets | 3 | 2 | |
Derivative Liabilities | 33 | 54 | |
Unrealized gain (loss) recognized in Other comprehensive (loss) income | (14) | 24 | |
Realized gain (loss) reclassed from Other comprehensive (loss) income to earnings | (26) | (14) | |
Level 3 Derivative Instruments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative Assets | 74 | 153 | |
Derivative Liabilities | 615 | 289 | |
Unrealized gain (loss) recognized in Other comprehensive (loss) income | (385) | 774 | |
Realized gain (loss) reclassed from Other comprehensive (loss) income to earnings | 42 | (38) | $ (82) |
Level 1, 2 and 3 Derivative Instruments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative Assets | 77 | 155 | |
Derivative Liabilities | 648 | 343 | |
Derivative Assets Current | 59 | 73 | |
Derivative Liabilities Current | 67 | 82 | |
Derivative Assets Noncurrent | 18 | 82 | |
Derivative Liabilities Noncurrent | $ 581 | $ 261 |
Derivatives and Other Financi_5
Derivatives and Other Financial Instruments - Schedule of Fair Values of Level 3 Derivative Instruments Outstanding (Detail) - Level 3 [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Forward Sales One [Member] | LME Plus Midwest Premium [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Description | Embedded derivative that indexes price of power to the LME price of aluminum plus the Midwest premium |
Contract Termination | Mar. 31, 2026 |
Sensitivity to Inputs | Increase in LME price and/or the Midwest premium results in a higher cost of power and a decrease to the derivative asset or increase to the derivative liability |
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Forward Sales Two [Member] | LME Plus Midwest Premium [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Description | Embedded derivative that indexes price of power to the LME price of aluminum plus the Midwest premium |
Contract Termination | Dec. 31, 2029 |
Sensitivity to Inputs | Increase in LME price and/or the Midwest premium results in a higher cost of power and a decrease to the derivative asset or increase to the derivative liability |
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Forward Sales Four [Member] | London Metal Exchange [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Description | Embedded derivative that indexes price of power to the LME price of aluminum |
Contract Termination | Sep. 30, 2027 |
Sensitivity to Inputs | Increase in LME price results in a higher cost of power and an increase to the derivative liability |
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Forward Sales Three [Member] | LME Plus Midwest Premium [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Description | Embedded derivative that indexes price of power to the LME price of aluminum plus the Midwest premium |
Contract Termination | Feb. 29, 2036 |
Sensitivity to Inputs | Increase in LME price and/or the Midwest premium results in a higher cost of power and a decrease to the derivative asset or increase to the derivative liability |
Energy Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Forward Sales Five [Member] | London Metal Exchange [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Description | Embedded derivative that indexes price of power to the LME price of aluminum |
Contract Termination | Dec. 31, 2019 |
Sensitivity to Inputs | Increase in LME price results in a higher cost of power and an increase to the derivative liability |
Energy Contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Estimated Credit Spread [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Description | Embedded derivative that indexes the price of power to the credit spread between the Company and the counterparty |
Contract Termination | Oct. 31, 2028 |
Sensitivity to Inputs | Wider credit spread results in a higher cost of power and increase in the derivative liability |
Financial Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Future Purchases [Member] | Power Price [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Description | Hedge power prices |
Contract Termination | Jul. 31, 2021 |
Sensitivity to Inputs | Lower power prices result in a lower derivative asset |
Derivatives and Other Financi_6
Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | $ 74 | $ 153 |
Derivative Liabilities, Fair value | 615 | $ 289 |
Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | 74 | |
Derivative Liabilities, Fair value | 615 | |
Financial Contracts [Member] | Energy Contracts [Member] | Interrelationship Of Forward Energy Price And Consumer Price Index [Member] | Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets, Fair value | 74 | |
Power Related Derivative | Energy Contracts [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 4 Million MWh Per Year [Member] | Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | 225 | |
Power Related Derivative | Energy Contracts [Member] | MWh of Energy Needed to Produce Forecasted Mt of Aluminum at Rate of 11 Million MWh Per Year [Member] | Level 3 [Member] | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Derivative Liabilities, Fair value | 373 | |
Power Related Derivative | 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 | $ 17 |
Derivatives and Other Financi_7
Derivatives and Other Financial Instruments - Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | $ 74 | $ 153 |
Fair value liability derivatives | 615 | 289 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | 74 | 153 |
Fair value liability derivatives | 598 | 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 | 57 | 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 | 17 | 42 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Power Related Derivative | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value asset derivatives | 0 | 41 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Power Related Derivative | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 47 | 46 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Noncurrent [Member] | Power Related Derivative | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 551 | 218 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 17 | 25 |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value of Derivative Contracts - Current [Member] | Power Related Derivative | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fair value liability derivatives | 0 | 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 | 3 | 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 | $ 14 | $ 16 |
Derivatives and Other Financi_8
Derivatives and Other Financial Instruments - Schedule of Net Fair Values of Level 3 Derivative Instruments and Effect of Hypothetical Change (Increase or Decrease of 10%) in Market Prices or Rates (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Power Related Derivative | |
Derivative Instruments Gain Loss [Line Items] | |
Fair value asset/(liability) | $ (598) |
Index change of + / -10% | 356 |
Embedded Credit Derivative [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Fair value asset/(liability) | (17) |
Index change of + / -10% | 2 |
Financial Contracts [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Fair value asset/(liability) | 74 |
Index change of + / -10% | $ 22 |
Derivatives and Other Financi_9
Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Power Related Derivative | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | $ 41 | |
Other comprehensive (loss) income (unrealized) | $ (41) | 40 |
Fair value measurement, Assets, Other | 1 | |
Fair value measurement, Assets, Ending balance | 41 | |
Fair value measurement, Liabilities, Beginning balance | 269 | 1,146 |
Other comprehensive (loss) income (unrealized) | 396 | (745) |
Fair value measurement, Liabilities, Other | (21) | (13) |
Fair value measurement, Liabilities, Ending balance | 598 | 269 |
Power Related Derivative | Sales [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | (44) | (100) |
Power Related Derivative | Other Expense [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | (2) | (19) |
Fair value measurement, Liabilities, Other income, net | 1 | (1) |
Financial Contracts [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets, Beginning balance | 74 | 112 |
Other comprehensive (loss) income (unrealized) | 52 | (11) |
Fair value measurement, Assets, Other | (4) | (12) |
Fair value measurement, Assets, Ending balance | 112 | 197 |
Financial Contracts [Member] | Cost of Goods Sold [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Assets | (86) | (62) |
Embedded Credit Derivative [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities, Beginning balance | 20 | 27 |
Fair value measurement, Liabilities, Other | (1) | (1) |
Fair value measurement, Liabilities, Ending balance | 17 | 20 |
Embedded Credit Derivative [Member] | Other Expense [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement, Liabilities | (2) | (6) |
Fair value measurement, Liabilities, Other income, net | $ 1 | $ (4) |
Derivatives and Other Financ_10
Derivatives and Other Financial Instruments - Schedule of Carrying Values and Fair Values of Other Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 879 | $ 1,113 |
Restricted cash | 4 | 3 |
Long-term debt due within one year | 1 | 1 |
Long-term debt, less amount due within one year | 1,799 | 1,801 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 879 | 1,113 |
Restricted cash | 4 | 3 |
Long-term debt due within one year | 1 | 1 |
Long-term debt, less amount due within one year | $ 1,961 | $ 1,863 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (1,000) | $ (752) | $ (686) |
Foreign | 562 | 2,377 | 1,886 |
(Loss) income before income taxes | $ (438) | $ 1,625 | $ 1,200 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes on Income from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (4) | $ 5 | $ 3 |
Foreign | 404 | 757 | 421 |
Current provision for income taxes, total | 400 | 762 | 424 |
Deferred: | |||
Federal | 2 | (21) | 25 |
Foreign | 13 | (9) | 143 |
Deferred provision for income taxes, total | 15 | (30) | 168 |
Provision for income taxes | $ 415 | $ 732 | $ 592 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 35.00% |
Changes in valuation allowances | (65.30%) | 3.40% | 24.90% |
Non-deductible losses on foreign divestitures | (22.60%) | ||
Taxes on foreign operations—rate differential | (19.30%) | 12.60% | (10.40%) |
Noncontrolling interest | (6.80%) | 1.00% | 1.40% |
Global intangible low-taxed income | 9.90% | ||
Other | (1.90%) | (2.90%) | (1.60%) |
Effective tax rate | (94.90%) | 45.00% | 49.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) € in Millions, $ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2019USD ($)Filer | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2019AUD ($) |
Income Taxes [Line Items] | |||||||||
Corporate income tax rate | 21.00% | 21.00% | 21.00% | 35.00% | |||||
Deferred income taxes | $ 410 | ||||||||
Deferred tax assets | $ 2,556 | 2,788 | $ 2,556 | ||||||
Deferred tax assets, valuation allowance | 1,684 | 1,778 | $ 1,684 | $ 1,927 | $ 1,755 | ||||
Foreign undistributed net earnings for which no deferred taxes have been provided | $ 1,792 | ||||||||
Percentage of the effect of unrecognized tax benefit, if recorded | (7.00%) | 2.00% | 2.00% | 1.00% | |||||
Interest and penalties recognized | 10 | $ 2 | $ 1 | ||||||
Income related to accrued interest and penalties | 1 | 1 | $ 6 | ||||||
Amount accrued for payment of interest and penalties | 12 | $ 14 | $ 12 | ||||||
Net operating losses carry forward period | 20 years | ||||||||
Net operating losses carryback period | 2 years | ||||||||
Percentage of taxable income related to net operating losses carry forward and carryback period | 80.00% | 80.00% | 100.00% | ||||||
Charges resulting from estimated annualized effective tax rate | $ 22 | ||||||||
Change in deferred tax assets related to TCJA | (506) | ||||||||
Change in valuation allowance related to TCJA | (433) | ||||||||
Change in deferred tax liabilities related to TCJA | $ (51) | ||||||||
Minimum [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
One-time deemed repatriation of foreign undistributed net earnings, percentage | 8.00% | ||||||||
Income tax rate on global intangible low tax income (GILTI) | 10.50% | ||||||||
Tax rate on base erosion payments | 5.00% | 5.00% | |||||||
Percentage of deductible expenses | 3.00% | ||||||||
Maximum [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
One-time deemed repatriation of foreign undistributed net earnings, percentage | 15.50% | ||||||||
Income tax rate on global intangible low tax income (GILTI) | 21.00% | ||||||||
Tax rate on base erosion payments | 10.00% | 10.00% | |||||||
Elysis TM Limited Partnership [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Deferred tax assets, valuation allowance | $ 86 | $ 86 | |||||||
Initial cash investment | 5 | ||||||||
Alumina Limited [Member] | AWAC [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Non-controlling interest, ownership percentage | 40.00% | 40.00% | |||||||
Iceland [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Deferred tax assets, valuation allowance | $ 94 | ||||||||
Discrete income tax charge charge | 60 | ||||||||
Tax charge to Accumulated other comprehensive loss | $ 34 | ||||||||
Deferred tax assets related to tax loss carryforwards expiration year | 2026 | ||||||||
Secretariat of the Federal Revenue Bureau of Brazil [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Tax credit carryforward, limitations on use | 30.00% | ||||||||
Tax Authority, Spain [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Tax credit carryforward, limitations on use | 25.00% | ||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 30 | € 26 | 30 | € 26 | |||||
Interest recorded in provision for income taxes to establish liability for estimated loss | $ 10 | € 9 | |||||||
Percentage of share of the estimated loss | 49.00% | 49.00% | 49.00% | 49.00% | |||||
Foreign [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Deferred income taxes | $ 403 | ||||||||
Percentage of net deferred tax asset relates to four of Alcoa Corporation?s income tax filers | 90.00% | ||||||||
Number of Alcoa Corporation's income tax filers | Filer | 5 | ||||||||
Deferred tax assets | $ 1,734 | ||||||||
Deferred tax assets, valuation allowance | $ 880 | ||||||||
Foreign [Member] | Earliest Tax Year [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Income tax return, year under examination | 2006 | ||||||||
Foreign [Member] | Latest Tax Year [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Income tax return, year under examination | 2017 | ||||||||
AofA [Member] | Foreign [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Deferred tax assets | $ 197 | ||||||||
AofA [Member] | Foreign [Member] | Australian Taxation Office [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Additional income tax payable, exclusive of interest and penalties | $ 144 | $ 212 | |||||||
Expected percentage of disputed tax amount payable | 50.00% | ||||||||
Alcoa World Alumina Brasil [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Corporate income tax rate | 15.25% | 34.00% | |||||||
Increase (decrease) in deferred tax asset due to tax holiday | $ 5 | $ (26) | |||||||
Increase (decrease) in discrete income tax charge and benefit due tax holiday | 5 | (26) | |||||||
Increase (decrease) in deferred tax asset due to tax holiday after noncontrolling interest | 3 | (15) | |||||||
Increase (decrease) in deferred tax asset due to tax holiday after noncontrolling interest | $ 3 | $ (15) | |||||||
Alcoa World Alumina Brasil [Member] | Foreign [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Deferred tax assets | $ 130 | ||||||||
Alcoa World Alumina Brasil [Member] | Alumar Refinery [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Corporate income tax rate | 15.25% | 34.00% | 34.00% | ||||||
Income tax holiday, description | This holiday was due to end December 31, 2022 but was extended to December 31, 2027. | ||||||||
Increase (decrease) in deferred tax asset due to tax holiday | $ (7) | ||||||||
Increase (decrease) in discrete income tax charge and benefit due tax holiday | (7) | ||||||||
Increase (decrease) in deferred tax asset due to tax holiday after noncontrolling interest | (4) | ||||||||
Increase (decrease) in deferred tax asset due to tax holiday after noncontrolling interest | (4) | ||||||||
Alcoa Aluminio [Member] | Foreign [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Deferred tax assets | 205 | ||||||||
Espanola [Member] | Foreign [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Deferred tax assets | 89 | ||||||||
Alcoa Canada Company [Member] | Foreign [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Deferred tax assets | $ 137 | ||||||||
Alcoa Corporation [Member] | AWAC [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Ownership interest percentage | 60.00% | 60.00% | |||||||
Divesture of MRC [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Divestiture not deductible for tax purposes | $ 65 | ||||||||
Avilés and La Coruña Aluminum Facilities [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Divestiture not deductible for tax purposes | $ 35 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||||
Tax loss carryforwards | $ 1,411 | $ 1,231 | ||
Deferred tax assets, Employee benefits | 698 | 683 | ||
Deferred tax assets, Loss provisions | 203 | 212 | ||
Investment basis differences | 164 | 162 | ||
Deferred tax assets, Depreciation | 72 | 91 | ||
Deferred tax assets, Derivatives and hedging activities | 154 | 53 | ||
Deferred tax assets, Tax credit carryforwards | 26 | 27 | ||
Deferred tax assets, Deferred income/expense | 11 | 10 | ||
Deferred tax assets, Other | 49 | 87 | ||
Deferred tax assets, Gross | 2,788 | 2,556 | ||
Deferred tax assets, Valuation allowance | (1,778) | (1,684) | $ (1,927) | $ (1,755) |
Total | 1,010 | 872 | ||
Deferred tax liabilities, Tax loss carryforwards | 0 | 0 | ||
Deferred tax liabilities, Employee benefits | 0 | 0 | ||
Deferred tax liabilities, Loss provisions | 0 | 0 | ||
Investment basis differences | 0 | 0 | ||
Deferred tax liabilities, Depreciation | 438 | 428 | ||
Deferred tax liabilities, Derivatives and hedging activities | 22 | 39 | ||
Deferred tax liabilities, Tax credit carryforwards | 0 | 0 | ||
Deferred tax liabilities, Deferred income/expense | 134 | 103 | ||
Deferred tax liabilities, Other | 6 | 1 | ||
Deferred tax liabilities, Gross | 600 | 571 | ||
Deferred tax liabilities, Valuation allowance | 0 | 0 | ||
Total | $ 600 | $ 571 |
Income Taxes - Schedule of Expi
Income Taxes - Schedule of Expiration Periods of Deferred Tax Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | $ 1,411 | |||
Tax credit carryforwards | 26 | $ 27 | ||
Other | 1,351 | |||
Valuation allowance | (1,778) | (1,684) | $ (1,927) | $ (1,755) |
Total | 1,010 | $ 872 | ||
Expires Within 10 Years [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 333 | |||
Tax credit carryforwards | 17 | |||
Valuation allowance | (350) | |||
Expires Within 11-20 Years [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 323 | |||
Tax credit carryforwards | 9 | |||
Valuation allowance | (318) | |||
Total | 14 | |||
No Expiration [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 755 | |||
Other | 170 | |||
Valuation allowance | (300) | |||
Total | 625 | |||
Other [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Other | 1,181 | |||
Valuation allowance | (810) | |||
Total | $ 371 |
Income Taxes - Composition of N
Income Taxes - Composition of Net Deferred Tax Asset by Jurisdiction (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets | $ 2,788 | $ 2,556 | ||
Valuation allowance | (1,778) | $ (1,684) | $ (1,927) | $ (1,755) |
Deferred tax liabilities | (600) | |||
Total | 410 | |||
Domestic [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets | 1,054 | |||
Valuation allowance | (898) | |||
Deferred tax liabilities | (149) | |||
Total | 7 | |||
Foreign [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets | 1,734 | |||
Valuation allowance | (880) | |||
Deferred tax liabilities | (451) | |||
Total | $ 403 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Valuation Allowance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ (1,684) | $ (1,927) | $ (1,755) |
Establishment of new allowances | (86) | (94) | |
Net change to existing allowances | (101) | 312 | (33) |
Foreign currency translation | 7 | 17 | (45) |
Balance at end of year | $ (1,778) | $ (1,684) | $ (1,927) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 30 | $ 10 | $ 23 |
Additions for tax positions of the current year | 1 | 1 | |
Additions for tax positions of prior years | 20 | ||
Reductions for tax positions of prior years | (5) | ||
Settlements with tax authorities | (6) | ||
Expiration of the statute of limitations | (3) | ||
Foreign currency translation | (1) | (1) | |
Balance at end of year | $ 29 | $ 30 | $ 10 |
Asset Retirement Obligations -
Asset Retirement Obligations - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligations [Line Items] | ||
Current liability | $ 111 | $ 122 |
Liabilities incurred | 148 | 63 |
Closure of Point Comfort Alumina Refinery [Member] | Restructuring And Other Charges [Member] | ||
Asset Retirement Obligations [Line Items] | ||
Liabilities incurred | $ 72 | |
Portovesme (Italy) smelters [Member] | ||
Asset Retirement Obligations [Line Items] | ||
Reversals of previously recorded liabilities | $ 36 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Schedule of Carrying Value of Recorded AROs by Major Category (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Mine reclamation | $ 205 | $ 198 | |
Closure of bauxite residue areas | 282 | 231 | |
Spent pot lining disposal | 106 | 113 | |
Demolition | 85 | 76 | |
Landfill closure | 39 | 33 | |
Balance at end of year | $ 717 | $ 651 | $ 725 |
Asset Retirement Obligations _3
Asset Retirement Obligations - Schedule of Changes in Carrying Value of Recorded AROs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Balance at beginning of year | $ 651 | $ 725 |
Accretion expense | 22 | 17 |
Liabilities incurred | 148 | 63 |
Payments | (90) | (80) |
Reversals of previously recorded liabilities | (12) | (37) |
Foreign currency translation and other | (2) | (37) |
Balance at end of year | $ 717 | $ 651 |
Contingencies and Commitments -
Contingencies and Commitments - Changes in Carrying Value of Recorded Environmental Remediation Reserves (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Beginning balance | $ 280 | $ 294 | $ 324 |
Liabilities incurred | 73 | 19 | 11 |
Cash payments | (17) | (25) | (48) |
Reversals of previously recorded liabilities | (1) | (3) | (10) |
Foreign currency translation and other | (5) | 17 | |
Ending balance | $ 335 | $ 280 | $ 294 |
Contingencies and Commitments_2
Contingencies and Commitments - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)Project | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||
Environmental remediation reserve balance, current | $ 39 | $ 44 | ||
Liabilities incurred | 73 | 19 | $ 11 | |
Active or future remediation for significant sites | 274 | 214 | ||
Accrued environmental reserves | $ 335 | 280 | 294 | $ 324 |
Massena, New York [Member] | Minimum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Environmental remediation work completion period | 4 years | |||
Massena, New York [Member] | Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Environmental remediation work completion period | 8 years | |||
Sherwin, Texas [Member] | ||||
Loss Contingencies [Line Items] | ||||
Beginning of expected term for reuse of residue bed | 8 years | |||
Ending of expected term for reuse of residue bed | 12 years | |||
Other Sites [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of remediation projects | Project | 35 | |||
Accrued environmental reserves | $ 61 | 66 | ||
Restructuring And Other Charges [Member] | ||||
Loss Contingencies [Line Items] | ||||
Additional accrual | $ 2 | $ 8 | ||
Closure of Point Comfort Alumina Refinery [Member] | ||||
Loss Contingencies [Line Items] | ||||
Liabilities incurred | $ 73 |
Contingencies and Commitments_3
Contingencies and Commitments - Estimate Timing of Cash Outflows on Environmental Reserves (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments And Contingencies Disclosure [Abstract] | ||||
2020 | $ 39 | |||
2021 – 2025 | 187 | |||
Thereafter | 109 | |||
Total | $ 335 | $ 280 | $ 294 | $ 324 |
Contingencies and Commitments_4
Contingencies and Commitments - Additional Information - 1 (Detail) | Jul. 06, 2018USD ($) | Apr. 08, 2013USD ($) | Apr. 08, 2013BRL (R$) | Mar. 31, 2013USD ($) | May 31, 2012USD ($) | May 31, 2012BRL (R$) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Jul. 06, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Mar. 31, 2013BRL (R$) |
Loss Contingencies [Line Items] | ||||||||||||||
Value added tax receivable | $ 107,000,000 | |||||||||||||
Tax Authority, Spain [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 30,000,000 | € 26,000,000 | $ 30,000,000 | € 26,000,000 | ||||||||||
Percentage of share of the estimated loss | 49.00% | 49.00% | 49.00% | 49.00% | ||||||||||
Tax Authority, Spain [Member] | Minimum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Total combined assessments | $ 24,000,000 | € 21,000,000 | ||||||||||||
Tax Authority, Spain [Member] | Maximum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Total combined assessments | $ 59,000,000 | € 53,000,000 | ||||||||||||
Tax Authority, Spain [Member] | Arconic Inc [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Tax matters agreement, contribution percentage | 51.00% | |||||||||||||
Tax Authority, Spain [Member] | Alcoa Corporation [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Tax matters agreement, contribution percentage | 49.00% | |||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Disallowed tax credits | $ 110,000,000 | R$ 220000000 | ||||||||||||
Percentage of penalty of the gross disallowed amount | 50.00% | |||||||||||||
Value added tax receivable | $ 41,000,000 | R$ 82000000 | ||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Minimum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 0 | |||||||||||||
Brazilian Federal Revenue Office [Member] | Alcoa World Alumina Brasil [Member] | Maximum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Charge recorded in provision for income taxes to establish liability for estimated loss | $ 54,000,000 | R$ 220000000 | ||||||||||||
Tax Year 2006 Through 2009 [Member] | Tax Authority, Spain [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Total combined assessments | $ 152,000,000 | € 131,000,000 |
Contingencies and Commitments_5
Contingencies and Commitments - Additional Information - 2 (Detail) $ in Millions | Apr. 08, 2015USD ($)RefineryInstallment | Apr. 30, 2016USD ($)Refinery | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019AUD ($) | Dec. 31, 2018AUD ($) | Aug. 31, 2017USD ($) | Jun. 30, 2015USD ($) |
Loss Contingencies [Line Items] | |||||||||
Number of alumina refineries to be powered under supplied agreement | Refinery | 3 | ||||||||
Total asset | $ 437,000,000 | $ 458,000,000 | |||||||
Guarantees of third party related to project financing | $ 0 | 60,000,000 | |||||||
Line of credit renew or expire starting year | 2020 | ||||||||
Line of credit renew or expire ending year | 2023 | ||||||||
Letters of credit, total amount committed | $ 332,000,000 | ||||||||
Outstanding bank guarantees and letters of credit | $ 20,000,000 | ||||||||
Letter of credit agreement, expiration date | May 3, 2021 | ||||||||
Total amount committed under outstanding surety bonds | $ 52,000,000 | ||||||||
Surety bonds, expiration date | 2020 | ||||||||
Alcoa Corporation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Total amount committed under outstanding surety bonds | $ 14,000,000 | ||||||||
Arconic Inc [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Total amount committed under outstanding surety bonds | 4,000,000 | ||||||||
Arconic Inc [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Outstanding bank guarantees and letters of credit | 14,000,000 | ||||||||
Letter of Credit [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Line of credit facility, outstanding borrowings | 100,000,000 | ||||||||
Standby Letter of Credit Agreement [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Principal amount of debt | $ 150,000,000 | ||||||||
AofA [Member] | Service Agreements [Member] | Alcoa Corporation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of alumina refineries to be powered under supplied agreement | Refinery | 3 | ||||||||
Number of installments | Installment | 2 | ||||||||
Gas supply agreement prepayment amount | $ 500,000,000 | ||||||||
Total asset | 458,000,000 | 458,000,000 | $ 654 | $ 654 | |||||
AofA [Member] | Service Agreements [Member] | Prepaid Expenses and Other Current Assets [Member] | Alcoa Corporation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Total asset | 21,000,000 | ||||||||
AofA [Member] | Service Agreements [Member] | Other Noncurrent Assets [Member] | Alcoa Corporation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Total asset | 437,000,000 | ||||||||
AofA [Member] | Service Agreements [Member] | First Installment [Member] | Alcoa Corporation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Gas supply agreement prepayment amount | $ 300,000,000 | ||||||||
AofA [Member] | Service Agreements [Member] | Second Installment [Member] | Alcoa Corporation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Gas supply agreement prepayment amount | $ 200,000,000 | ||||||||
Energy Obligation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Purchase obligations due in 2020 | 153,000,000 | ||||||||
Purchase obligations due in 2021 | 211,000,000 | ||||||||
Purchase obligations due in 2022 | 216,000,000 | ||||||||
Purchase obligations due in 2023 | 221,000,000 | ||||||||
Purchase obligations due in 2024 | 227,000,000 | ||||||||
Purchase obligations due thereafter | 2,463,000,000 | ||||||||
Purchase obligations expenditures | $ 146,000,000 | $ 169,000,000 | $ 199,000,000 | ||||||
Energy Obligation [Member] | Minimum [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Expiration date of unconditional purchase obligations for energy | 2028 | ||||||||
Energy Obligation [Member] | Maximum [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Expiration date of unconditional purchase obligations for energy | 2037 | ||||||||
Energy Raw Materials And Other Goods And Services [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Purchase obligations due in 2020 | $ 2,123,000,000 | ||||||||
Purchase obligations due in 2021 | 1,583,000,000 | ||||||||
Purchase obligations due in 2022 | 1,565,000,000 | ||||||||
Purchase obligations due in 2023 | 1,429,000,000 | ||||||||
Purchase obligations due in 2024 | 1,276,000,000 | ||||||||
Purchase obligations due thereafter | $ 10,393,000,000 |
Leasing - Additional Informatio
Leasing - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Line Items] | ||
Operating lease right-of-use assets | $ 154 | $ 201 |
Operating lease, liability | 161 | $ 201 |
Costs from operating leases | 78 | |
Short-term rental expense | 6 | |
Variable lease payments | 16 | |
New lease cost | 30 | |
Operating lease right-of-use assets impairment | $ 6 | |
Minimum [Member] | ||
Leases [Line Items] | ||
Remaining lease term | 1 year | |
Maximum [Member] | ||
Leases [Line Items] | ||
Remaining lease term | 38 years |
Leasing - Schedule of Aggregate
Leasing - Schedule of Aggregate Right-of Use Assets and Related Lease Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Properties, plants and equipment, net | $ 154 | $ 201 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Other current liabilities | $ 61 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |
Other noncurrent liabilities and deferred credits | $ 100 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:DeferredCreditsAndOtherLiabilitiesNoncurrent | |
Total operating lease liabilities | $ 161 | $ 201 |
Leasing - Schedule of Weighted
Leasing - Schedule of Weighted Average Lease Term and Weighted Average Discount Rate (Detail) | Dec. 31, 2019 |
Weighted average lease term | |
Operating leases | 4 years 7 months 6 days |
Weighted average discount rate | |
Operating leases | 5.40% |
Leasing - Schedule of Future Ca
Leasing - Schedule of Future Cash Flows Related to Operating Lease Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 67 | |
2021 | 51 | |
2022 | 21 | |
2023 | 12 | |
2024 | 6 | |
Thereafter | 28 | |
Total lease payments (undiscounted) | 185 | |
Less: discount to net present value | (24) | |
Total | $ 161 | $ 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 |
Other Financial Information - S
Other Financial Information - Schedule of Interest Cost Components (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Financial Information [Abstract] | |||
Amount charged to expense | $ 121 | $ 122 | $ 104 |
Amount capitalized | 13 | 14 | 17 |
Interest costs, total | $ 134 | $ 136 | $ 121 |
Other Financial Information -_2
Other Financial Information - Schedule of Other Expenses, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | |||
Equity loss | $ 49 | $ 17 | $ 28 |
Foreign currency losses (gains), net | 16 | (57) | 8 |
Net gain from asset sales | (3) | (116) | |
Net (gain) loss on mark-to-market derivative instruments | (1) | (25) | 24 |
Non-service costs – pension and OPEB | 117 | 139 | 85 |
Other, net | (16) | (10) | (2) |
Other expenses, net | $ 162 | $ 64 | $ 27 |
Other Financial Information - A
Other Financial Information - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2016Refinery | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)Subsidiary | Dec. 31, 2017USD ($) | |
Other Non operating Income Expense [Line Items] | ||||
Net gain from asset sales | $ 3 | $ 116 | ||
Number of alumina refineries to be powered under supplied agreement | Refinery | 3 | |||
Dampier to Bunbury Natural Gas Pipeline [Member] | AofA [Member] | ||||
Other Non operating Income Expense [Line Items] | ||||
Investment percentage | 30.00% | |||
Prepayments made under the agreement for future gas transmission services | $ 275 | $ 281 | ||
Brazil [Member] | Alcoa World Alumina Brazil and Alcoa Alumínio [Member] | ||||
Other Non operating Income Expense [Line Items] | ||||
Number of subsidiaries | Subsidiary | 2 | |||
Restructuring and other charges, net | $ 107 | |||
Yadkin [Member] | ||||
Other Non operating Income Expense [Line Items] | ||||
Net gain from asset sales | $ 122 |
Other Financial Information -_3
Other Financial Information - Schedule of Other Noncurrent Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Financial Information [Abstract] | ||
Gas supply prepayment | $ 437 | $ 458 |
Prepaid gas transmission contract | 281 | 275 |
Value-added tax credits | 179 | 210 |
Goodwill | 150 | 151 |
Deferred mining costs, net | 124 | 123 |
Intangibles, net | 52 | 57 |
Prepaid pension benefit | 33 | 63 |
Other | 156 | 138 |
Other assets, noncurrent, total | $ 1,412 | $ 1,475 |
Other Financial Information -_4
Other Financial Information - Schedule of Other Noncurrent Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Financial Information [Abstract] | ||
Accrued compensation and retirement costs | $ 110 | $ 107 |
Operating lease obligations | 100 | |
Deferred alumina sales revenue | 52 | 61 |
Deferred energy credits | 50 | |
Other | 58 | 54 |
Other noncurrent liabilities and deferred credits, total | $ 370 | $ 222 |
Other Financial Information -_5
Other Financial Information - Schedule of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Financial Information [Abstract] | ||||
Cash and cash equivalents | $ 879 | $ 1,113 | ||
Restricted cash | 4 | 3 | ||
Cash and cash equivalents and restricted cash, total | $ 883 | $ 1,116 | $ 1,365 | $ 859 |
Other Financial Information -_6
Other Financial Information - Schedule of Cash Paid for Interest and Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Financial Information [Abstract] | |||
Interest, net of amount capitalized | $ 113 | $ 111 | $ 100 |
Income taxes, net of amount refunded | $ 732 | $ 507 | $ 363 |
Quarterly Data - Schedule of Qu
Quarterly Data - Schedule of Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 2,436 | $ 2,567 | $ 2,711 | $ 2,719 | $ 3,344 | $ 3,390 | $ 3,579 | $ 3,090 | $ 10,433 | $ 13,403 | $ 11,652 |
Net (loss) income | (355) | (147) | (293) | (58) | 227 | 195 | 131 | 340 | (853) | 893 | 608 |
Net (loss) income attributable to Alcoa Corporation | $ (303) | $ (221) | $ (402) | $ (199) | $ 51 | $ (6) | $ 10 | $ 195 | $ (1,125) | $ 250 | $ 279 |
Earnings per share attributable to Alcoa Corporation common shareholders: | |||||||||||
Basic | $ (1.63) | $ (1.19) | $ (2.17) | $ (1.07) | $ 0.27 | $ (0.03) | $ 0.05 | $ 1.05 | $ (6.07) | $ 1.34 | $ 1.51 |
Diluted | $ (1.63) | $ (1.19) | $ (2.17) | $ (1.07) | $ 0.27 | $ (0.03) | $ 0.05 | $ 1.04 | $ (6.07) | $ 1.33 | $ 1.49 |