Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

L. Goodwill and Other Intangible Assets

Goodwill, which is included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, was as follows:

December 31,	2021		2020
Bauxite	$	2	$	2
Alumina		2		2
Aluminum		—		—
Corporate⁽¹⁾		140		141
	$	144	$	145

⁽¹⁾

The carrying value of Corporate’s goodwill is net of accumulated impairment losses of $742 as of both December 31, 2021 and 2020. As of December 31, 2021, the $140 of goodwill reflected in Corporate is allocated to two of Alcoa Corporation’s three reportable segments ($46 to Bauxite and $94 to Alumina) for purposes of impairment testing (see Note B). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the two reportable segments.

Management performed a quantitative assessment for the Bauxite reporting unit in 2021. As a result of the assessment, the estimated fair value of the Bauxite reporting unit was substantially in excess of carrying value, resulting in no impairment.

Additionally, Management performed a qualitative assessment for the Alumina reporting unit in 2021 and determined that it was not more likely than not that the fair value of the reporting unit was less than carrying value. Management last performed a quantitative impairment test for the Alumina reporting unit in 2019. At the time of the quantitative assessment, the estimated fair value of the Alumina reporting unit was substantially in excess of carrying value, resulting in no impairment.

Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows:

	2021							2020
December 31,	Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount
Computer software	$	214	$	(204	)	$	10	$	236	$	(218	)	$	18
Patents and licenses		25		(9	)		16		25		(8	)		17
Other intangibles		19		(10	)		9		20		(10	)		10
Total other intangible assets	$	258	$	(223	)	$	35	$	281	$	(236	)	$	45

Computer software consists primarily of software costs associated with the enterprise business solution within Alcoa to drive common systems among all businesses.

Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2021, 2020, and 2019 was $11, $9, and $19, respectively, and is expected to be approximately $10 annually from 2022 to 2026.