Interest Cost Components


	2023		2022		2021
Amount charged to expense	$	107	$	106	$	195
Amount capitalized		4		3		6
	$	111	$	109	$	201

Other Expenses (Income), Net


	2023			2022			2021
Equity loss (income)	$	228		$	27		$	(105	)
Foreign currency (gains) losses, net		(64	)		9			3
Net loss (gain) from asset sales		14			10			(354	)
Net loss (gain) on mark-to-market derivative instruments (P)		5			(174	)		(25	)
Non-service costs – pension and other postretirement benefits (O)		13			60			47
Other, net		(62	)		(50	)		(11	)
	$	134		$	(118	)	$	(445	)

In 2023, Other, net of $62 was primarily related to interest income on interest bearing accounts.

In 2022, Other, net of $50 was primarily related to interest income for the Brazil value added tax credits (see Note S).

In 2021, Net loss (gain) from asset sales of $354 was primarily related to the sales of the Rockdale site, the Eastalco site, and the Warrick Rolling Mill (see Note C).

Other Noncurrent Assets


December 31,	2023		2022
Value added tax credits	$	336	$	294
Prepaid gas transmission contract		297		285
Gas supply prepayment (S)		283		311
Deferred mining costs, net		187		161
Goodwill (L)		146		145
Prepaid pension benefit (O)		125		146
Noncurrent prepaid tax asset (S)		73		72
Noncurrent restricted cash (see below)		71		56
Intangibles, net (L)		37		29
Other		95		94
	$	1,650	$	1,593

Prepaid gas transmission contract—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 three alumina refineries. At December 31, 2023 and 2022, AofA had an asset of $297 and $285, respectively, representing prepayments made under the agreement for future gas transmission services.

Value added tax credits—The Value added tax (VAT) credits (federal and state) relate to two of the Company’s subsidiaries in Brazil, AWAB and Alumínio, concerning the Alumar smelter and refinery and the Juruti mine. The mine, refinery and smelter pay VAT on the purchase of goods and services used in the mining, alumina, and production process. The credits generally can be utilized to offset the VAT charged on domestic sales of bauxite, alumina, and aluminum.

In March 2021, the Brazil Federal Supreme Court provided clarification on an earlier ruling that found the inclusion of state VAT within the federal VAT tax base to be unconstitutional. After receiving further clarification from the court in August 2021, the Company finalized the amount of its recovery claim and submitted the claim to the tax authorities in the fourth quarter and received acknowledgment of the claim in January 2022. As a result, in the fourth quarter of 2021, the Company recorded $95 of additional VAT credits in Other noncurrent assets, $47 payable to Arconic Corporation within Other noncurrent liabilities, $34 in Sales, and $14 of interest income within Other (income) expenses, net. The amount due to Arconic Corporation represents VAT payments related to an Arconic subsidiary previously owned by Alumínio for a portion of the claim years and covered under agreements related to the Separation Transaction (see Note A).

In the fourth quarter of 2018, after an assessment of the future realizability of Brazil state VAT credits recorded, the Company established an allowance on the accumulated state VAT credit balances and stopped recording any future credit benefits. With the restart of the Alumar smelter and its first metal sales in June 2022, the Company had the ability to monetize these credits. In June 2022, the Company reversed the allowance with a credit of $83 to Restructuring and other charges, net and reversed the subsequent additions to the valuation allowance with a credit to Cost of goods sold of $46 (same accounts as when incurred).

Other Noncurrent Liabilities and Deferred Credits


December 31,	2023		2022
Noncurrent accrued tax liability (S)	$	199	$	174
Operating lease obligations (T)		104		59
Accrued compensation and retirement costs		94		95
Value added tax credits payable to Arconic Corporation		58		51
Deferred energy credits		42		37
Noncurrent restructuring reserve (D)		15		3
Deferred alumina sales revenue		20		28
Other		36		39
	$	568	$	486

Deferred energy credits—Deferred energy credits relate to cash received for 2022 and 2021 carbon dioxide emissions related to the San Ciprián smelter and refinery during the years ended December 31, 2023 and 2022, respectively, from a governmental agency in Spain. 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.

Value added tax credits payable to Arconic Corporation—See, Other noncurrent assets—Value added tax credits, above.

Cash and Cash Equivalents and Restricted Cash


December 31,	2023		2022
Cash and cash equivalents	$	944	$	1,363
Current restricted cash		32		55
Noncurrent restricted cash		71		56
	$	1,047	$	1,474

Restricted cash primarily relates to commitments made for the December 2021 and February 2023 viability agreements for the San Ciprián restart (see Note D).

At December 31, 2023, the Company had restricted cash of $91 remaining to be made available for $118 in capital improvements at the site and $35 in smelter restart costs. The Company incurred $28 of capital investment expenditures against the commitments during 2023.

Cash Flow Information

Cash paid for interest and income taxes was as follows:


	2023		2022		2021
Interest, net of amount capitalized	$	100	$	100	$	191
Income taxes, net of amount refunded		319		504		152