Asset Retirement Obligations

12 Months Ended

Dec. 31, 2024

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

R. Asset Retirement Obligations

The following table details the carrying value of recorded AROs by major category, of which $204 and $217 was classified as a current liability as of December 31, 2024 and 2023, respectively:

December 31,	2024		2023
Closure of bauxite residue areas	$	396	$	437
Mine reclamation		321		328
Spent pot lining disposal		103		124
Demolition		50		76
Landfill closure		25		24
Balance at end of year	$	895	$	989

The following table details the changes in the total carrying value of recorded AROs:

December 31,	2024			2023
Balance at beginning of year	$	989		$	828
Accretion expense		38			33
Liabilities incurred		160			254
Payments		(196	)		(148	)
Reversals of previously recorded liabilities		(10	)		(8	)
Foreign currency translation and other		(86	)		30
Balance at end of year	$	895		$	989

Liabilities incurred in 2024 include:

•$87 for new mining areas opened during the year and higher estimated mine reclamation costs;

•$24 for changes in closure estimates at the previously closed Suralco (Suriname) refinery;

•$22 related to spent pot lining transportation, treatment, and disposal;

•$11 related to changes in closure estimates for mine reclamation, landfill closure, and demolition at previously closed sites;

•$9 related to water treatment due to the curtailment of the Kwinana refinery; and,

•$6 related to the changes in estimates for residue area closure, landfill closure, and mine reclamation at various operating sites.

The liabilities incurred were recorded with corresponding capitalized asset retirement costs, except for $6 related to non-operating bauxite residue areas and spent pot lining transportation and disposal, which was recorded to Cost of goods sold; and a net charge of $35 related to changes in closure estimates at previously closed sites and the curtailment of the Kwinana refinery which were recorded to Restructuring and other charges, net (see Note D) on the accompanying Statement of Consolidated Operations.

In 2024, reversals of previously recorded liabilities primarily related to the completion of spent pot lining transportation and disposal at the previously closed Intalco smelter.

Liabilities incurred in 2023 include:

•$97 for changes in closure estimates of operating bauxite residue areas;

•$87 for new mining areas opened during the year and higher estimated mine reclamation costs;

•$36 related to the closure of the previously curtailed Intalco smelter;

•$23 related to spent pot lining transportation, treatment, and disposal;

•$10 for changes in closure estimates of non-operating bauxite residue areas; and,

•$1 related to an accrual for demolition for the closure of a potline at Warrick Operations.

The additional accruals were recorded with corresponding capitalized asset retirement costs except for $15 related to non-operating bauxite residue areas at the Alumar refinery, spent pot lining and treatment, and mine reclamation which was recorded to Cost of goods sold; and $41 related to the closure of the Intalco smelter, updated estimates for spent pot lining treatment and disposal at a previously closed site, and demolition accruals for the closure of a potline at Warrick Operations, which was recorded to Restructuring and other charges, net (see Note D) on the accompanying Statement of Consolidated Operations.

In 2023, reversals of previously recorded liabilities primarily related to changes in estimates at various sites and to the completion of a site demolition project, of which $2 was recorded to Restructuring and other charges, net (see Note D) on the accompanying Statement of Consolidated Operations.

The estimated timing of cash outflows for recorded AROs at December 31, 2024 was as follows:

2025	$	204
2026 – 2029		522
Thereafter		169
Total	$	895

Changes to the estimates may result in material changes to the recorded AROs that may require an increase to or a reversal of previously recorded liabilities, as well as changes in the timing of cash outflows.