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Segment Information (Tables)
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Schedule of Operating Results of Alcoa's Reportable Segments 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

 

Third quarter ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party sales

 

$

100

 

 

$

771

 

 

$

1,677

 

 

$

2,548

 

Intersegment sales

 

 

251

 

 

 

369

 

 

 

4

 

 

 

624

 

Total sales

 

$

351

 

 

$

1,140

 

 

$

1,681

 

 

$

3,172

 

Segment Adjusted EBITDA

 

$

134

 

 

$

223

 

 

$

43

 

 

$

400

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, and amortization

 

$

35

 

 

$

54

 

 

$

88

 

 

$

177

 

Equity loss

 

$

—

 

 

$

—

 

 

$

(5

)

 

$

(5

)

Third quarter ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party sales

 

$

67

 

 

$

1,101

 

 

$

2,198

 

 

$

3,366

 

Intersegment sales

 

 

224

 

 

 

544

 

 

 

6

 

 

 

774

 

Total sales

 

$

291

 

 

$

1,645

 

 

$

2,204

 

 

$

4,140

 

Segment Adjusted EBITDA

 

$

106

 

 

$

660

 

 

$

84

 

 

$

850

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, and amortization

 

$

27

 

 

$

48

 

 

$

91

 

 

$

166

 

Equity income (loss)

 

$

—

 

 

$

10

 

 

$

(5

)

 

$

5

 

 

 

 

 

 

Bauxite

 

 

Alumina

 

 

Aluminum

 

 

Total

 

Nine months ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party sales

 

$

232

 

 

$

2,532

 

 

$

5,169

 

 

$

7,933

 

Intersegment sales

 

 

733

 

 

 

1,231

 

 

 

11

 

 

 

1,975

 

Total sales

 

$

965

 

 

$

3,763

 

 

$

5,180

 

 

$

9,908

 

Segment Adjusted EBITDA

 

$

372

 

 

$

964

 

 

$

(50

)

 

$

1,286

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, and amortization

 

$

90

 

 

$

157

 

 

$

262

 

 

$

509

 

Equity income (loss)

 

 

—

 

 

 

15

 

 

 

(44

)

 

 

(29

)

Nine months ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party sales

 

$

191

 

 

$

3,083

 

 

$

6,722

 

 

$

9,996

 

Intersegment sales

 

 

699

 

 

 

1,534

 

 

 

14

 

 

 

2,247

 

Total sales

 

$

890

 

 

$

4,617

 

 

$

6,736

 

 

$

12,243

 

Segment Adjusted EBITDA

 

$

316

 

 

$

1,690

 

 

$

501

 

 

$

2,507

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, and amortization

 

$

83

 

 

$

150

 

 

$

305

 

 

$

538

 

Equity income (loss)

 

 

—

 

 

 

23

 

 

 

(13

)

 

 

10

 

 
Schedule of Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alco Corporation

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

 

 

 

Third quarter ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Total Segment Adjusted EBITDA(1)

 

$

400

 

 

$

850

 

 

$

1,286

 

 

$

2,507

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transformation(2)

 

 

(6

)

 

 

1

 

 

 

(1

)

 

 

(2

)

Intersegment eliminations(1),(3)

 

 

25

 

 

 

21

 

 

 

110

 

 

 

(55

)

Corporate expenses(4)

 

 

(27

)

 

 

(22

)

 

 

(79

)

 

 

(75

)

Provision for depreciation, depletion, and

   amortization

 

 

(184

)

 

 

(173

)

 

 

(530

)

 

 

(559

)

Restructuring and other charges, net (C)

 

 

(185

)

 

 

(177

)

 

 

(668

)

 

 

(389

)

Interest expense

 

 

(30

)

 

 

(33

)

 

 

(90

)

 

 

(91

)

Other expenses, net (N)

 

 

(27

)

 

 

(2

)

 

 

(118

)

 

 

(32

)

Other(5)

 

 

(18

)

 

 

(10

)

 

 

(47

)

 

 

(69

)

Consolidated (loss) income before income taxes

 

 

(52

)

 

 

455

 

 

 

(137

)

 

 

1,235

 

Provision for income taxes

 

 

(95

)

 

 

(260

)

 

 

(361

)

 

 

(569

)

Net income attributable to noncontrolling

   interest

 

 

(74

)

 

 

(201

)

 

 

(324

)

 

 

(467

)

Consolidated net (loss) income attributable to

   Alcoa Corporation

 

$

(221

)

 

$

(6

)

 

$

(822

)

 

$

199

 

 

(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, in the third quarter and nine-month period of 2018, Total Segment Adjusted EBITDA increased $11 and $44, respectively, and Intersegment eliminations increased $38 and decreased $37, respectively. 

(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.
Schedule of Sales by Product Division

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

 

 

 

Third quarter ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Primary aluminum

 

$

1,341

 

 

$

1,658

 

 

$

4,117

 

 

$

5,176

 

Alumina

 

 

770

 

 

 

1,098

 

 

 

2,529

 

 

 

3,079

 

Flat-rolled aluminum

 

 

294

 

 

 

472

 

 

 

933

 

 

 

1,417

 

Energy

 

 

71

 

 

 

115

 

 

 

225

 

 

 

261

 

Bauxite

 

 

95

 

 

 

63

 

 

 

216

 

 

 

179

 

Other(1)

 

 

(4

)

 

 

(16

)

 

 

(23

)

 

 

(53

)

 

 

$

2,567

 

 

$

3,390

 

 

$

7,997

 

 

$

10,059

 

 

(1) 

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