Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2025

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

L. Pension and Other Postretirement Benefits

The components of net periodic benefit cost were as follows:

	Second quarter ended June 30,						Six months ended June 30,
Pension benefits	2025			2024			2025			2024
Service cost	$	1		$	3		$	3		$	5
Interest cost(1)		25			27			50			54
Expected return on plan assets(1)		(31	)		(35	)		(62	)		(70	)
Recognized net actuarial loss(1)		9			8			18			16
Curtailments(2)		—			—			—			1
Settlements(2)		—			(1	)		—			(1	)
Net periodic benefit cost	$	4		$	2		$	9		$	5

	Second quarter ended June 30,						Six months ended June 30,
Other postretirement benefits	2025			2024			2025			2024
Service cost	$	1		$	—		$	1		$	1
Interest cost(1)		6			6			11			12
Recognized net actuarial loss(1)		1			2			2			3
Amortization of prior service benefit(1)		(3	)		(4	)		(6	)		(7	)
Net periodic benefit cost	$	5		$	4		$	8		$	9

(1)These amounts were reported in Other (income) expenses, net on the accompanying Statement of Consolidated Operations (see Note P).

(2)These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations and Cash Flows.

Funding and Cash Flows. It is Alcoa’s policy to fund amounts for defined benefit pension plans sufficient to meet the minimum requirements set forth in each applicable country’s benefits laws and tax laws, including the Employee Retirement Income Security Act of 1974 (ERISA) for U.S. plans. From time to time, the Company contributes additional amounts as deemed appropriate.

Under ERISA regulations, a plan sponsor that establishes a pre-funding balance by making discretionary contributions to a U.S. defined benefit pension plan may elect to apply all or a portion of this balance toward its minimum required contribution obligations to the related plan in future years.

In the first and second quarters of 2025, management made such elections related to the Company’s U.S. plans and intends to do so for the remainder of 2025. As a result, Alcoa’s minimum required contribution to defined benefit pension plans in 2025 is estimated to be approximately $21, of which $2 was contributed to non-U.S. plans during the second quarter of 2025. In the six-month period of 2025, $14 was contributed to non-U.S. plans.

In the second quarter and six-month period of 2024, $4 and $10, respectively, were contributed to non-U.S. plans.