Restructuring and Other Charges, Net

6 Months Ended

Jun. 30, 2025

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges, Net

D. Restructuring and Other Charges, Net

In the second quarter and the six-month period of 2025, Alcoa Corporation recorded Restructuring and other charges, net, of $14 and $19, respectively, which were primarily comprised of:

•A charge of $20 (both periods) to record net additional asset retirement obligation and environmental reserves at previously closed sites;

•A charge of $6 and $9, respectively, for certain employee obligations related to the February 2023 updated viability agreement for the San Ciprián (Spain) aluminum smelter; and,

•A net benefit of ($12) and ($10), respectively, for take-or-pay contract costs at previously closed sites.

In the second quarter and the six-month period of 2024, Alcoa Corporation recorded Restructuring and other charges, net, of $18 and $220, respectively, which were primarily comprised of:

•A charge of $8 and $205, respectively, for the curtailment of the Kwinana (Australia) refinery; and,

•A charge of $8 and $12, respectively, for take-or-pay contract costs at a previously closed site.

In June 2024, Alcoa completed the full curtailment of the Kwinana refinery, as planned, which was announced in January 2024. As of June 2025, the refinery had approximately 230 employees to manage certain processes, including water management. In the first quarter of 2024, the Company recorded charges of $197 in Restructuring and other charges, net on the Statement of Consolidated Operations comprised of other costs of $136 for water management costs ($123) and take-or-pay contracts ($13), severance and employee termination costs of $41, asset retirement obligations of $15, and asset impairments of $5. The Company recorded net charges of $8 and $82 in Restructuring and other charges, net on the Statement of Consolidated Operations in the second quarter and fourth quarter of 2024, respectively, comprised of others costs of $96, partially offset by an adjustment to decrease the asset retirement obligation by $6. Payments related to other costs were $45 and $86 in the second quarter and six-month period of 2025, respectively. Remaining cash outlays of approximately $60 are expected to be spent in 2025.

Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows:

	Second quarter ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Alumina	$	—	$	8	$	—	$	205
Aluminum		6		—		9		—
Segment total		6		8		9		205
Corporate		8		10		10		15
Total Restructuring and other charges, net	$	14	$	18	$	19	$	220

Activity and reserve balances for restructuring charges were as follows:

	Severance and employee termination costs			Other costs			Total
Balance at December 31, 2023	$	6		$	57		$	63
Restructuring and other charges, net		44			264			308
Cash payments		(38	)		(145	)		(183	)
Reversals and other		1			(8	)		(7	)
Balance at December 31, 2024		13			168			181
Restructuring and other charges, net		1			(2	)		(1	)
Cash payments		(1	)		(102	)		(103	)
Reversals and other		(1	)		8			7
Balance at June 30, 2025	$	12		$	72		$	84

The activity and reserve balances include only Restructuring and other charges, net that impacted the reserves for Severance and employee termination costs and Other costs. Restructuring and other charges, net that affected other liability accounts such as Accrued pension benefits (see Note L), Asset retirement obligations, and Environmental remediation (see Note O) are excluded from the above activity and balances. Reversals and other includes reversals of previously recorded liabilities and foreign currency translation impacts.

The noncurrent portion of the reserve was $2 and $8 at June 30, 2025 and December 31, 2024, respectively.