Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2022

Compensation And Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

K. Pension and Other Postretirement Benefits

The components of net periodic benefit cost were as follows:

	Pension benefits						Other postretirement benefits
First quarter ended March 31,	2022			2021			2022			2021
Service cost	$	3		$	5		$	1		$	2
Interest cost(1)		27			29			4			4
Expected return on plan assets(1)		(44	)		(73	)		—			—
Recognized net actuarial loss(1)		28			51			4			6
Amortization of prior service cost(1)		—			—			(3	)		(4	)
Settlements(2)		—			—			—			26
Curtailments(2)		—			—			—			(17	)
Net periodic benefit cost	$	14		$	12		$	6		$	17

⁽¹⁾ These amounts were reported in Other income, net on the accompanying Statement of Consolidated Operations (see Note P).

⁽²⁾ These amounts were reported in Restructuring and other charges, net on the accompanying Statements of Consolidated Operations (see Note D) and Cash Flows.

Funding and Cash Flows. It is Alcoa’s policy to fund amounts for defined benefit pension plans sufficient to meet the minimum requirements set forth in applicable country benefits laws and tax laws, including ERISA for U.S. plans. From time to time, the Company contributes additional amounts as deemed appropriate.

Under ERISA regulations, a plan sponsor that establishes a pre-funding balance by making discretionary contributions to a U.S. defined benefit pension plan may elect to apply all or a portion of this balance toward its minimum required contribution obligations to the related plan in future years.

In the first quarter of 2022, management made such elections related to the Company’s U.S. plans and intends to do so for the remainder of 2022. As a result, Alcoa’s minimum required contribution to defined benefit pension plans in 2022 is estimated to be approximately $15, of which approximately $4 was contributed to non-U.S. plans during the first quarter of 2022.

In the first quarter of 2021, $49 and $14 were contributed to U.S. and non-U.S. plans, respectively.