Derivatives and Other Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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):

	September 30, 2023				December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Level 1 derivative instruments	$	29	$	16	$	84	$	14
Level 3 derivative instruments		7		1,115		52		1,212
Total	$	36	$	1,131	$	136	$	1,226
Less: Current		33		204		134		200
Noncurrent	$	3	$	927	$	2	$	1,026

	2023						2022
Third quarter ended September 30,	Unrealized gain (loss) recognized in Other comprehensive loss			Realized gain (loss) reclassed from Other comprehensive loss to earnings			Unrealized gain recognized in Other comprehensive loss		Realized gain (loss) reclassed from Other comprehensive loss to earnings
Level 1 derivative instruments	$	(11	)	$	22		$	59	$	32
Level 3 derivative instruments		(110	)		(54	)		49		(67	)
Noncontrolling and equity interest (Level 2)		1			3			2		(2	)
Total	$	(120	)	$	(29	)	$	110	$	(37	)

	2023						2022
Nine months ended September 30,	Unrealized gain (loss) recognized in Other comprehensive loss			Realized gain (loss) reclassed from Other comprehensive loss to earnings			Unrealized gain recognized in Other comprehensive loss		Realized gain (loss) reclassed from Other comprehensive loss to earnings
Level 1 derivative instruments	$	20		$	66		$	158	$	12
Level 3 derivative instruments		(87	)		(164	)		62		(286	)
Noncontrolling and equity interest (Level 2)		1			5			11		(6	)
Total	$	(66	)	$	(93	)	$	231	$	(280	)

Schedule of Outstanding Quantities of Derivative Instruments

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

	Classification	September 30, 2023		September 30, 2022
Aluminum (in kmt)	Commodity buy forwards		126		178
Aluminum (in kmt)	Commodity sell forwards		144		398
Foreign currency (in millions of euro)	Foreign exchange buy forwards		68		67
Foreign currency (in millions of euro)	Foreign exchange sell forwards		18		—
Foreign currency (in millions of Norwegian krone)	Foreign exchange buy forwards		185		87
Foreign currency (in millions of Brazilian real)	Foreign exchange buy forwards		734		1,216
Foreign currency (in millions of Brazilian real)	Foreign exchange sell forwards		—		17
Foreign currency (in millions of Canadian dollar)	Foreign exchange sell forwards		33		—

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):

	September 30, 2023		Unobservable Input	Unobservable Input Range
Asset Derivatives
Financial contract (undesignated)	$	7	Interrelationship of forward energy price, LME forward price and the Consumer Price Index	Electricity (per MWh)	2023: $29.76 2024: $54.21
				LME (per mt)	2023: $2,339
					2024: $2,374
Power contract		—	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2023: $2,339 2023: $2,353
				Midwest premium (per pound)	2023: $0.1940 2023: $0.1950
				Electricity	Rate of 2 million MWh per year
Total Asset Derivatives	$	7
Liability Derivatives
Power contract	$	196	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2023: $2,339 2027: $2,707
				Electricity	Rate of 4 million MWh per year
Power contracts		919	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2023: $2,339 2029: $2,711 2036: $2,959
				Midwest premium (per pound)	2023: $0.1940 2029: $0.2200 2036: $0.2200
				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	1.55%: 30-year debt yield spread 7.37%: Alcoa (estimated) 5.82%: counterparty
Total Liability Derivatives	$	1,115

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	September 30, 2023		December 31, 2022
Derivatives designated as hedging instruments:
Current—financial contract	$	—	$	20
Total derivatives designated as hedging instruments	$	—	$	20
Derivatives not designated as hedging instruments:
Current—financial contract	$	7	$	32
Total derivatives not designated as hedging instruments	$	7	$	32
Total Asset Derivatives	$	7	$	52
Liability Derivatives
Derivatives designated as hedging instruments:
Current—power contracts	$	196	$	195
Noncurrent—power contracts		919		1,017
Total derivatives designated as hedging instruments	$	1,115	$	1,212
Total Liability Derivatives	$	1,115	$	1,212

Schedule of Reconciliation of Activity for Derivative Contracts

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

	Assets
Third quarter ended September 30, 2023	Power contracts			Financial contracts
July 1, 2023	$	1		$	28
Total gains or losses included in:
Sales (realized)		(2	)		—
Other expenses, net (unrealized/realized)		—			(20	)
Other comprehensive income (unrealized)		1			—
Settlements and other		—			(1	)
September 30, 2023	$	—		$	7
Change in unrealized gains or losses included in earnings    for derivative instruments held at September 30, 2023:
Other expenses, net	$	—		$	(20	)

	Liabilities
Third quarter ended September 30, 2023	Power contracts
July 1, 2023	$	1,060
Total gains or losses included in:
Sales (realized)		(56	)
Other comprehensive income (unrealized)		111
September 30, 2023	$	1,115

	Assets
Nine months ended September 30, 2023	Power contracts			Financial contracts
January 1, 2023	$	—		$	52
Total gains or losses included in:
Sales (realized)		(4	)		—
Cost of goods sold (realized)		—			(20	)
Other expenses, net (unrealized/realized)		—			(3	)
Other comprehensive income (unrealized)		4			—
Settlements and other		—			(22	)
September 30, 2023	$	—		$	7
Change in unrealized gains or losses included in earnings    for derivative instruments held at September 30, 2023:
Other expenses, net	$	—		$	(3	)

	Liabilities
Nine months ended September 30, 2023	Power contracts
January 1, 2023	$	1,212
Total gains or losses included in:
Sales (realized)		(188	)
Other comprehensive income (unrealized)		91
September 30, 2023	$	1,115

Schedule of Carrying Values and Fair Values of Other Financial Instruments

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

	September 30, 2023				December 31, 2022
	Carrying value		Fair value		Carrying value		Fair value
Cash and cash equivalents	$	926	$	926	$	1,363	$	1,363
Restricted cash		104		104		111		111
Short-term borrowings		42		42		—		—
Long-term debt due within one year		1		1		1		1
Long-term debt, less amount due within one year		1,809		1,726		1,806		1,744