Segment Information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Information

D. Segment Information – The operating results of Alcoa Corporation’s reportable segments were as follows (differences between segment totals and consolidated amounts are in Corporate):

	Bauxite		Alumina			Aluminum			Total
First quarter ended March 31, 2019
Sales:
Third-party sales	$	65	$	897		$	1,735		$	2,697
Intersegment sales		236		417			3			656
Total sales	$	301	$	1,314		$	1,738		$	3,353
Segment Adjusted EBITDA	$	126	$	372		$	(96	)	$	402
Supplemental information:
Depreciation, depletion, and amortization	$	28	$	48		$	89		$	165
Equity income (loss)	$	—	$	12		$	(22	)	$	(10	)
First quarter ended March 31, 2018
Sales:
Third-party sales	$	47	$	914		$	2,111		$	3,072
Intersegment sales		249		454			4			707
Total sales	$	296	$	1,368		$	2,115		$	3,779
Segment Adjusted EBITDA	$	110	$	392		$	187		$	689
Supplemental information:
Depreciation, depletion, and amortization	$	29	$	53		$	106		$	188
Equity loss	$	—	$	(1	)	$	—		$	(1	)

The following table reconciles total Segment Adjusted EBITDA to consolidated net (loss) income attributable to Alcoa Corporation:

	First quarter ended March 31,
	2019			2018
Total Segment Adjusted EBITDA(1)	$	402		$	689
Unallocated amounts:
Transformation(2)		2			(2	)
Intersegment eliminations(1),(3)		86			76
Corporate expenses(4)		(24	)		(27	)
Provision for depreciation, depletion, and    amortization		(172	)		(194	)
Restructuring and other charges, net (C)		(113	)		19
Interest expense		(30	)		(26	)
Other expenses, net (N)		(41	)		(21	)
Other(5)		(18	)		(23	)
Consolidated income before income taxes		92			491
Provision for income taxes		(150	)		(151	)
Net income attributable to noncontrolling    interest		(141	)		(145	)
Consolidated net (loss) income attributable to    Alcoa Corporation	$	(199	)	$	195

⁽¹⁾ As of January 1, 2019, the Company changed its accounting method for valuing certain inventories from LIFO to average cost. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented. As a result, Total Segment Adjusted EBITDA increased $34 and Intersegment eliminations increased $45 for the first quarter ended March 31, 2018. 

⁽²⁾ Transformation includes, among other items, the Adjusted EBITDA of previously closed operations.

⁽³⁾ Concurrent with the change in inventory accounting method as of January 1, 2019, management elected to change the presentation of certain line items in the reconciliation of total Segment Adjusted EBITDA to Consolidated net (loss) income attributable to Alcoa Corporation.  Corporate inventory accounting previously included the impact of LIFO, metal price lag and intersegment eliminations.  The impact of LIFO has been eliminated with the change in inventory method.  Metal price lag attributable to the Company’s rolled operations business is now netted within the Aluminum segment to simplify presentation of an impact that nets to zero in consolidation. Only intersegment eliminations remain as a reconciling line item and are labeled as such.

⁽⁴⁾ Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center.

⁽⁵⁾ Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on Alcoa Corporation’s Statement of Consolidated Operations that are not included in the Adjusted EBITDA of the reportable segments.

The following table details Alcoa Corporation’s Sales by product division:

	First quarter ended March 31,
	2019			2018
Primary aluminum	$	1,394		$	1,647
Alumina		897			913
Flat-rolled aluminum		312			429
Energy		69			73
Bauxite		58			45
Other(1)		(11	)		(17	)
	$	2,719		$	3,090

⁽¹⁾ Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum.