Restructuring and Other Charges, Net

3 Months Ended

Mar. 31, 2022

Restructuring And Related Activities [Abstract]

Restructuring and Other Charges, Net

D. Restructuring and Other Charges, Net – In the first quarter of 2022, Alcoa Corporation recorded Restructuring and other charges, net, of $125 which were comprised of:

• A charge of $77 for the offer made to the workers of the divested Avilés and La Coruña facilities to settle various legal disputes related to the 2019 divestiture (see Note O);

• A charge of $58 for an asset impairment related to the sale of the Company’s interest in MRN (see Note H); and

• A net reversal of $9 for changes in estimated take-or-pay contract costs at the closed Wenatchee (Washington) smelter and the curtailed Intalco (Washington) smelter.

In the first quarter of 2021, Alcoa Corporation recorded Restructuring and other charges, net, of $7 which were comprised of:

• A net charge of $9 related to the settlement and curtailment of certain other postretirement benefits resulting from the sale of the Warrick Rolling Mill;

• A charge of $6 for additional take-or-pay contract costs related to the curtailed Wenatchee and Intalco smelters;

• A reversal of $12 due to lower costs for demolition and remediation related to previously established reserves (see Note O); and,

• A net charge of $4 for several other insignificant items.

Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows:

	First quarter ended March 31,
	2022			2021
Bauxite	$	58		$	—
Alumina		—			—
Aluminum		68			15
Segment total		126			15
Corporate		(1	)		(8	)
Total Restructuring and other charges, net	$	125		$	7

Activity and reserve balances for restructuring charges were as follows:

	Severance and employee termination costs			Other costs			Total
Balance at December 31, 2020	$	6		$	57		$	63
Restructuring and other charges, net		1			80			81
Cash payments		(4	)		(25	)		(29	)
Reversals and other		—			(22	)		(22	)
Balance at December 31, 2021		3			90			93
Restructuring and other charges, net		—			68			68
Cash payments		(1	)		(4	)		(5	)
Balance at March 31, 2022	$	2		$	154		$	156

The activity and reserve balances include only Restructuring and other charges, net that impact the reserves for Severance and employee termination costs and Other costs. Restructuring and other charges, net that affected other liability accounts such as environmental obligations (see Note O) and Investments (see Note H) are excluded from the above activity and balances. Reversals and other includes reversals of previously recorded liabilities and foreign currency translation impacts.

The noncurrent portion of the reserve was $36 and $43 at March 31, 2022 and December 31, 2021, respectively.