Derivatives and Other Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Detail for Level 1 and 3 Derivatives

The following tables present the detail for Level 1 and 3 derivatives (see additional Level 3 information in further tables below):

	March 31, 2023				December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Level 1 derivative instruments	$	49	$	13	$	84	$	14
Level 3 derivative instruments		58		1,316		52		1,212
Total	$	107	$	1,329	$	136	$	1,226
Less: Current		106		213		134		200
Noncurrent	$	1	$	1,116	$	2	$	1,026

	2023						2022
First quarter ended March 31,	Unrealized loss recognized in Other comprehensive loss			Realized gain (loss) reclassed from Other comprehensive loss to earnings			Unrealized (loss) gain recognized in Other comprehensive loss			Realized loss reclassed from Other comprehensive loss to earnings
Level 1 derivative instruments	$	(11	)	$	16		$	(233	)	$	(6	)
Level 3 derivative instruments		(174	)		(52	)		(837	)		(104	)
Noncontrolling and equity interest (Level 2)		(2	)		(1	)		7			(4	)
Total	$	(187	)	$	(37	)	$	(1,063	)	$	(114	)

Schedule of Outstanding Quantities of Derivative Instruments

The following table presents the outstanding quantities of derivative instruments classified as Level 1:

	Classification	March 31, 2023		March 31, 2022
Aluminum (in kmt)	Commodity buy forwards		316		245
Aluminum (in kmt)	Commodity sell forwards		398		534
Foreign currency (in millions of euro)	Foreign exchange buy forwards		55		80
Foreign currency (in millions of Norwegian krone)	Foreign exchange buy forwards		256		—
Foreign currency (in millions of Brazilian real)	Foreign exchange buy forwards		1,047		1,323

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):

	March 31, 2023		Unobservable Input	Unobservable Input Range
Asset Derivatives
Financial contract (undesignated)	$	56	Interrelationship of forward energy price, LME forward price and the Consumer Price Index	Electricity (per MWh)	2023: $51.49 2023: $85.09
				LME (per mt)	2023: $2,383
					2023: $2,451
Power contract		2	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2023: $2,383 2023: $2,411
				Midwest premium (per pound)	2023: $0.2525 2023: $0.2377
				Electricity	Rate of 2 million MWh per year
Total Asset Derivatives	$	58
Liability Derivatives
Power contract	$	239	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2023: $2,383 2027: $2,871
				Electricity	Rate of 4 million MWh per year
Power contracts		1,077	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2023: $2,383 2029: $2,965 2036: $3,261
				Midwest premium (per pound)	2023: $0.2525 2029: $0.2600 2036: $0.2600
				Electricity	Rate of 18 million MWh per year
Power contract (undesignated)		-	Estimated spread between the 30-year debt yield of Alcoa and the counterparty	Credit spread	1.26%: 30-year debt yield spread 6.47%: Alcoa (estimated) 5.21%: counterparty
Total Liability Derivatives	$	1,316

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	March 31, 2023		December 31, 2022
Derivatives designated as hedging instruments:
Current—financial contract	$	—	$	20
Current—power contract		2		—
Total derivatives designated as hedging instruments	$	2	$	20
Derivatives not designated as hedging instruments:
Current—financial contract	$	56	$	32
Total derivatives not designated as hedging instruments	$	56	$	32
Total Asset Derivatives	$	58	$	52
Liability Derivatives
Derivatives designated as hedging instruments:
Current—power contracts	$	209	$	195
Noncurrent—power contracts		1,107		1,017
Total derivatives designated as hedging instruments	$	1,316	$	1,212
Total Liability Derivatives	$	1,316	$	1,212

Fair Value Assets Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Text Block

The following tables present the reconciliation of activity for Level 3 derivative instruments:

	Assets
First quarter ended March 31, 2023	Power contracts		Financial contracts
January 1, 2023	$	—	$	52
Total gains or losses included in:
Sales (realized)		2		—
Cost of goods sold (realized)		—		(20	)
Other income, net (unrealized/realized)		—		26
Other		—		(2	)
March 31, 2023	$	2	$	56
Change in unrealized gains or losses included in earnings    for derivative instruments held at March 31, 2023:
Other income, net	$	—	$	(26	)

	Liabilities
First quarter ended March 31, 2023	Power contracts
January 1, 2023	$	1,212
Total gains or losses included in:
Sales (realized)		(70	)
Other comprehensive loss (unrealized)		174
March 31, 2023	$	1,316

Schedule of Carrying Values and Fair Values of Other Financial Instruments

The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows:

	March 31, 2023				December 31, 2022
	Carrying value		Fair value		Carrying value		Fair value
Cash and cash equivalents	$	1,138	$	1,138	$	1,363	$	1,363
Restricted cash		113		113		111		111
Short-term borrowings		25		25		—		—
Long-term debt due within one year		1		1		1		1
Long-term debt, less amount due within one year		1,806		1,773		1,806		1,744