Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

E. Segment Information – Alcoa Corporation is a producer of bauxite, alumina, and aluminum products. The Company has three operating and reportable segments, which are organized by product on a global basis: 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 earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) 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 chief operating decision maker function regularly reviews the financial information, including Sales and Adjusted EBITDA, of these three operating segments to assess performance and allocate resources.

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, 2022
Sales:
Third-party sales	$	59	$	832		$	1,976		$	2,867
Intersegment sales		181		418			10			609
Total sales	$	240	$	1,250		$	1,986		$	3,476
Segment Adjusted EBITDA	$	15	$	69		$	152		$	236
Supplemental information:
Depreciation, depletion, and amortization	$	31	$	43		$	70		$	144
Equity loss	$	—	$	(18	)	$	(5	)	$	(23	)
Third quarter ended September 30, 2021
Sales:
Third-party sales	$	56	$	756		$	2,295		$	3,107
Intersegment sales		172		349			8			529
Total sales	$	228	$	1,105		$	2,303		$	3,636
Segment Adjusted EBITDA	$	23	$	148		$	613		$	784
Supplemental information:
Depreciation, depletion, and amortization	$	30	$	47		$	72		$	149
Equity (loss) income	$	—	$	(1	)	$	38		$	37

	Bauxite		Alumina			Aluminum		Total
Nine months ended September 30, 2022
Sales:
Third-party sales	$	136	$	2,764		$	6,903	$	9,803
Intersegment sales		516		1,325			25		1,866
Total sales	$	652	$	4,089		$	6,928	$	11,669
Segment Adjusted EBITDA	$	58	$	674		$	1,461	$	2,193
Supplemental information:
Depreciation, depletion, and amortization	$	101	$	142		$	210	$	453
Equity (loss) income	$	—	$	(22	)	$	74	$	52
Nine months ended September 30, 2021
Sales:
Third-party sales	$	153	$	2,204		$	6,444	$	8,801
Intersegment sales		536		1,056			13		1,605
Total sales	$	689	$	3,260		$	6,457	$	10,406
Segment Adjusted EBITDA	$	123	$	499		$	1,356	$	1,978
Supplemental information:
Depreciation, depletion, and amortization	$	119	$	143		$	218	$	480
Equity (loss) income	$	—	$	(7	)	$	79	$	72

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,
	2022			2021			2022			2021
Total Segment Adjusted EBITDA	$	236		$	784		$	2,193		$	1,978
Unallocated amounts:
Transformation(1)		(19	)		(10	)		(44	)		(34	)
Intersegment eliminations		17			(8	)		139			20
Corporate expenses(2)		(27	)		(30	)		(91	)		(84	)
Provision for depreciation, depletion, and amortization		(149	)		(156	)		(470	)		(499	)
Restructuring and other charges, net (D)		(652	)		(33	)		(702	)		(73	)
Interest expense		(25	)		(58	)		(80	)		(167	)
Other (income) expense, net (Q)		(35	)		18			185			147
Other(3)		(75	)		(10	)		(188	)		(18	)
Consolidated (loss) income before income taxes		(729	)		497			942			1,270
Provision for income taxes		(40	)		(127	)		(484	)		(331	)
Net loss (income) attributable to noncontrolling interest		23			(33	)		(186	)		(118	)
Consolidated net (loss) income attributable to Alcoa Corporation	$	(746	)	$	337		$	272		$	821

⁽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 are not included in the Adjusted EBITDA of the reportable segments.

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

	Third quarter ended September 30,						Nine months ended September 30,
	2022			2021			2022			2021
Primary aluminum	$	1,990		$	2,255		$	7,033		$	6,094
Alumina		821			752			2,735			2,196
Energy		74			117			155			205
Bauxite		52			52			107			138
Flat-rolled aluminum(1)		—			—			—			320
Other(2)		(86	)		(67	)		(242	)		(141	)
	$	2,851		$	3,109		$	9,788		$	8,812

⁽¹⁾  Flat-rolled aluminum represented sales of the Warrick Rolling Mill through the sale of the facility on March 31, 2021 (see Note C).

⁽²⁾  Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum.