Derivatives and Other Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Detail for Level 1 and 3 Derivatives

The following tables present the detail for Level 1 and 3 derivatives (see additional Level 3 information in further tables below):

	March 31, 2024				December 31, 2023
	Assets		Liabilities		Assets		Liabilities
Level 1 derivative instruments	$	11	$	10	$	16	$	9
Level 3 derivative instruments		12		1,120		16		1,297
Total	$	23	$	1,130	$	32	$	1,306
Less: Current		22		205		29		214
Noncurrent	$	1	$	925	$	3	$	1,092

	2024						2023
First quarter ended March 31,	Unrealized (loss) gain recognized in Other comprehensive loss			Realized gain (loss) reclassed from Other comprehensive loss to earnings			Unrealized loss recognized in Other comprehensive loss			Realized gain (loss) reclassed from Other comprehensive loss to earnings
Level 1 derivative instruments	$	(3	)	$	4		$	(11	)	$	16
Level 3 derivative instruments		120			(57	)		(174	)		(52	)
Noncontrolling and equity interest (Level 2)		—			—			(2	)		(1	)
Total	$	117		$	(53	)	$	(187	)	$	(37	)

Schedule of Outstanding Quantities of Derivative Instruments

The following table presents the outstanding quantities of derivative instruments classified as Level 1:

	Classification	March 31, 2024		March 31, 2023
Aluminum (in kmt)	Commodity buy forwards		101		316
Aluminum (in kmt)	Commodity sell forwards		44		398
Foreign currency (in millions of euro)	Foreign exchange buy forwards		79		55
Foreign currency (in millions of euro)	Foreign exchange sell forwards		17		—
Foreign currency (in millions of Norwegian krone)	Foreign exchange buy forwards		102		256
Foreign currency (in millions of Brazilian real)	Foreign exchange buy forwards		450		1,047
Foreign currency (in millions of Canadian dollar)	Foreign exchange buy forwards		26		—

Schedule of Quantitative Information for Level 3 Derivative Contracts

The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments (megawatt hours in MWh):

	March 31, 2024		Unobservable Input	Unobservable Input Range
Asset Derivatives
Financial contract (undesignated)	$	12	Interrelationship of forward energy price, LME forward price, and the Consumer Price Index	Electricity (per MWh)	2024: $37.38 2024: $44.71
				LME (per mt)	2024: $2,307
					2024: $2,378
Power contract		—	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2024: $2,307 2024: $2,335
				Midwest premium (per pound)	2024: $0.1770 2024: $0.2040
				Electricity	Rate of 2 million MWh per year
Total Asset Derivatives	$	12
Liability Derivatives
Power contract	$	174	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2024: $2,307 2027: $2,705
				Electricity	Rate of 4 million MWh per year
Power contracts		946	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2024: $2,307 2029: $2,821 2036: $3,069
				Midwest premium (per pound)	2024: $0.1770 2029: $0.2150 2036: $0.2150
				Electricity	Rate of 18 million MWh per year
Power contract (undesignated)		—	Estimated spread between the 30-year debt yield of Alcoa and the counterparty	Credit spread	1.63%: 30-year debt yield spread 6.88%: Alcoa (estimated) 5.25%: counterparty
Total Liability Derivatives	$	1,120

Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities

The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows:

Asset Derivatives	March 31, 2024		December 31, 2023
Derivatives not designated as hedging instruments:
Current—financial contract	$	12	$	16
Total derivatives not designated as hedging instruments	$	12	$	16
Total Asset Derivatives	$	12	$	16
Liability Derivatives
Derivatives designated as hedging instruments:
Current—power contracts	$	200	$	210
Noncurrent—power contracts		920		1,087
Total derivatives designated as hedging instruments	$	1,120	$	1,297
Total Liability Derivatives	$	1,120	$	1,297

Schedule of Reconciliation of Activity for Derivative Contracts

The following tables present the reconciliation of activity for Level 3 derivative instruments:

	Assets
First quarter ended March 31, 2024	Power contracts			Financial contracts
January 1, 2024	$	—		$	16
Total gains or losses included in:
Sales (realized)		(1	)		—
Other expenses, net (unrealized/realized)		—			(5	)
Other comprehensive income (unrealized)		1			—
Settlements and other		—			1
March 31, 2024	$	—		$	12
Change in unrealized gains or losses included in earnings    for derivative instruments held at March 31, 2024:
Other expenses, net	$	—		$	(5	)

	Liabilities
First quarter ended March 31, 2024	Power contracts
January 1, 2024	$	1,297
Total gains or losses included in:
Sales (realized)		(58	)
Other comprehensive income (unrealized)		(119	)
March 31, 2024	$	1,120

Schedule of Carrying Values and Fair Values of Other Financial Instruments

The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows:

	March 31, 2024				December 31, 2023
	Carrying value		Fair value		Carrying value		Fair value
Cash and cash equivalents	$	1,358	$	1,358	$	944	$	944
Restricted cash		97		97		103		103
Short-term borrowings		52		52		56		56
Long-term debt due within one year		79		79		79		79
Long-term debt, less amount due within one year		2,469		2,473		1,732		1,702