Interest Cost Components


	2024		2023		2022
Amount charged to expense	$	156	$	107	$	106
Amount capitalized		8		4		3
	$	164	$	111	$	109

Other Expenses (Income), Net


	2024			2023			2022
Equity loss	$	24		$	228		$	27
Foreign currency losses (gains), net		126			(64	)		9
Net loss from asset sales		37			14			10
Net (gain) loss on mark-to-market derivative instruments (P)		(58	)		5			(174	)
Non-service costs – pension and other postretirement benefits (O)		16			13			60
Other, net		(54	)		(62	)		(50	)
	$	91		$	134		$	(118	)

In 2024 and 2023, Other, net of $54 and $62, respectively, 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).

Other Noncurrent Assets


December 31,	2024		2023
Prepaid gas transmission contract	$	278	$	297
Gas supply prepayment (S)		225		283
Value added tax credits		213		336
Deferred mining costs, net		184		187
Goodwill (L)		142		146
Prepaid pension benefit (O)		128		125
IRA Section 45X credit (Q)		71		—
Noncurrent prepaid tax asset (S)		66		73
Noncurrent restricted cash (see below)		53		71
Intangibles, net (L)		36		37
Other		101		95
	$	1,497	$	1,650

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, 2024 and 2023, AofA had an asset of $278 and $297, 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 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,	2024		2023
Operating lease obligations (T)	$	223	$	104
Noncurrent accrued tax liability (S)		206		199
Accrued compensation and retirement costs		95		94
Deferred energy credits		36		42
Value added tax credits payable to Arconic Corporation		26		58
Deferred alumina sales revenue		12		20
Noncurrent restructuring reserve (D)		8		15
Other		50		36
	$	656	$	568

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, 2024 and 2023, 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.

Cash and Cash Equivalents and Restricted Cash


December 31,	2024		2023
Cash and cash equivalents	$	1,138	$	944
Current restricted cash		43		32
Noncurrent restricted cash		53		71
	$	1,234	$	1,047

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

The Company incurred $9 of capital investment expenditures and $5 of smelter restart expenditures against the commitments during 2024, of which $5 was released from restricted cash. At December 31, 2024, the Company had restricted cash of $86, of which $10 was released in February 2025 for 2024 expenditures, and the remaining $76 is available for capital improvements at the site and smelter restart costs.

Cash Flow Information

Cash paid for interest and income taxes was as follows:


	2024		2023		2022
Interest, net of amount capitalized	$	132	$	100	$	100
Income taxes, net of amount refunded		157		319		504