Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

K. Income Taxes – Alcoa Corporation’s estimated annualized effective tax rate (AETR) for 2019 as of September 30, 2019 differs from the U.S. federal statutory rate of 21% primarily due to losses in countries with full valuation reserves resulting in no tax benefit, as well as foreign income taxed in higher rate jurisdictions.

	Nine-months ended September 30,
	2019				2018
(Loss) income before income taxes	$	(137	)		$	1,235
Estimated annualized effective tax rate		(686.2	)	%		43.6	%
Income tax expense	$	942			$	538
(Favorable) unfavorable tax impact related to losses in jurisdictions with no tax benefit		(590	)			5
Discrete tax charge		9				26
Provision for income taxes	$	361			$	569

The Provision for income taxes for the 2019 nine-month period includes the change in estimated AETR from the second quarter of 2019. The change in estimated AETR is primarily due to fluctuating alumina and aluminum market prices as well as restructuring charges incurred in the 2019 nine-month period that resulted in changes to the distribution of the (Loss) income before income taxes in the Company’s various jurisdictions, inclusive of those which receive no tax benefit from generated losses.