Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

E. Segment Information – Alcoa Corporation is a producer of bauxite, alumina, and aluminum products. The Company’s operations consist of three worldwide reportable segments: Bauxite, Alumina, and Aluminum. Segment performance under Alcoa Corporation’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is the Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) of each segment. The Company calculates Segment Adjusted EBITDA as Total sales (third-party and intersegment) minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; and Research and development expenses. Alcoa Corporation’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies. 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, 2021
Sales:
Third-party sales	$	58	$	760		$	2,047	$	2,865
Intersegment sales		185		364			2		551
Total sales	$	243	$	1,124		$	2,049	$	3,416
Segment Adjusted EBITDA	$	59	$	227		$	283	$	569
Supplemental information:
Depreciation, depletion, and amortization	$	57	$	46		$	73	$	176
Equity (loss) income	$	—	$	(5	)	$	13	$	8
First quarter ended March 31, 2020
Sales:
Third-party sales	$	71	$	707		$	1,598	$	2,376
Intersegment sales		235		336			3		574
Total sales	$	306	$	1,043		$	1,601	$	2,950
Segment Adjusted EBITDA	$	120	$	193		$	62	$	375
Supplemental information:
Depreciation, depletion, and amortization	$	34	$	49		$	81	$	164
Equity (loss) income	$	—	$	(9	)	$	5	$	(4	)

The following table reconciles total Segment Adjusted EBITDA to Consolidated net income attributable to Alcoa Corporation:

	First quarter ended March 31,
	2021			2020
Total Segment Adjusted EBITDA	$	569		$	375
Unallocated amounts:
Transformation(1)		(11	)		(16	)
Intersegment eliminations		(7	)		(8	)
Corporate expenses(2)		(26	)		(27	)
Provision for depreciation, depletion, and    amortization		(182	)		(170	)
Restructuring and other charges, net (D)		(7	)		(2	)
Interest expense		(42	)		(30	)
Other income, net (Q)		24			132
Other(3)		(6	)		(35	)
Consolidated income before income taxes		312			219
Provision for income taxes		(93	)		(80	)
Net income attributable to noncontrolling interest		(44	)		(59	)
Consolidated net income attributable to    Alcoa Corporation	$	175		$	80

⁽¹⁾  Transformation includes, among other items, the Adjusted EBITDA of previously closed operations.

⁽²⁾  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.

⁽³⁾  Other includes certain items that impact Cost of goods sold 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,
	2021			2020
Primary aluminum	$	1,727		$	1,297
Alumina		760			707
Flat-rolled aluminum		320			272
Bauxite		52			59
Energy		39			52
Other		(28	)		(6	)
	$	2,870		$	2,381

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