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Derivatives And Other Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2011
Derivatives And Other Financial Instruments [Abstract] |
Schedule Of Fair Values Of Outstanding Derivative Contracts Recorded As Assets |
Asset Derivatives |  | December 31, 2011 |  |  | December 31, 2010 |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
Prepaid expenses and other current assets: |  |  |  |  |  |  |  |
Aluminum contracts |  | $ | 56 |  |  | $ | 48 |
Foreign exchange contracts |  |  | - |  |  |  | 2 |
Interest rate contracts |  |  | 8 |  |  |  | 19 |
Other noncurrent assets: |  |  |  |  |  |  |  |
Aluminum contracts |  |  | 6 |  |  |  | 22 |
Energy contracts |  |  | 2 |  |  |  | 9 |
Interest rate contracts |  |  | 37 |  |  |  | 62 |
Total derivatives designated as hedging instruments |  | $ | 109 |  |  | $ | 162 |
Derivatives not designated as hedging instruments*: |  |  |  |  |  |  |  |
Prepaid expenses and other current assets: |  |  |  |  |  |  |  |
Aluminum contracts |  | $ | 1 |  |  | $ | 3 |
Other noncurrent assets: |  |  |  |  |  |  |  |
Aluminum contracts |  |  | 5 |  |  |  | - |
Foreign exchange contracts |  |  | 1 |  |  |  | 1 |
Total derivatives not designated as hedging instruments |  | $ | 7 |  |  | $ | 4 |
Less margin held: |  |  |  |  |  |  |  |
Prepaid expenses and other current assets: |  |  |  |  |  |  |  |
Aluminum contracts |  | $ | 7 |  |  | $ | 4 |
Interest rate contracts |  |  | 8 |  |  |  | 13 |
Other noncurrent assets: |  |  |  |  |  |  |  |
Interest rate contracts |  |  | 7 |  |  |  | 2 |
Sub-total |  | $ | 22 |  |  | $ | 19 |
Total Asset Derivatives |  | $ | 94 |  |  | $ | 147 |
* | See the "Other" section within Note X for additional information on Alcoa's purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies.
Schedule Of Fair Values Of Outstanding Derivative Contracts Recorded As Liabilities |
Liability Derivatives |  | December 31, 2011 |  |  | December 31, 2010 |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
Other current liabilities: |  |  |  |  |  |  |  |
Aluminum contracts |  | $ | 79 |  |  | $ | 89 |
Other noncurrent liabilities and deferred credits: |  |  |  |  |  |  |  |
Aluminum contracts |  |  | 574 |  |  |  | 647 |
Total derivatives designated as hedging instruments |  | $ | 653 |  |  | $ | 736 |
Derivatives not designated as hedging instruments*: |  |  |  |  |  |  |  |
Other current liabilities: |  |  |  |  |  |  |  |
Aluminum contracts |  | $ | 35 |  |  | $ | 52 |
Energy contracts |  |  | - |  |  |  | 62 |
Other noncurrent liabilities and deferred credits: |  |  |  |  |  |  |  |
Aluminum contracts |  |  | 22 |  |  |  | 33 |
Embedded credit derivative |  |  | 28 |  |  |  | 23 |
Total derivatives not designated as hedging instruments |  | $ | 85 |  |  | $ | 170 |
Less margin posted: |  |  |  |  |  |  |  |
Other current liabilities: |  |  |  |  |  |  |  |
Aluminum contracts |  | $ | 1 |  |  | $ | 4 |
Energy contracts |  |  | - |  |  |  | 37 |
Sub-total |  | $ | 1 |  |  | $ | 41 |
Total Liability Derivatives |  | $ | 737 |  |  | $ | 865 |
* | See the "Other" section within Note X for additional information on Alcoa's purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies.
Schedule Of Net Fair Values Of Outstanding Derivative Contracts And Effect Of Hypothetical Change (Increase Or Decrease Of 10%) In Market Prices Or Rates |
|  | Fair value asset/(liability) |  |  | Index change of + / - 10% |
Aluminum contracts |  | $ | (648 | ) |  | $ | 137 |
Embedded credit derivative |  |  | (28 | ) |  |  | 9 |
Energy contracts |  |  | 2 |  |  |  | 375 |
Foreign exchange contracts |  |  | 1 |  |  |  | - |
Interest rate contracts |  |  | 30 |  |  |  | 2 |
Schedule Of Derivative Contract Assets And Liabilities That Are Measured And Recognized At Fair Value On A Recurring Basis |
December 31, |  | 2011 |  |  | 2010 |
Assets: |  |  |  |  |  |  |  |
Level 1 |  | $ | 57 |  |  | $ | 76 |
Level 2 |  |  | 47 |  |  |  | 81 |
Level 3 |  |  | 12 |  |  |  | 9 |
Margin held* |  |  | (22 | ) |  |  | (19 | )
Total |  | $ | 94 |  |  | $ | 147 |
Liabilities: |  |  |  |  |  |  |  |
Level 1 |  | $ | 64 |  |  | $ | 35 |
Level 2 |  |  | 44 |  |  |  | 83 |
Level 3 |  |  | 630 |  |  |  | 788 |
Margin posted* |  |  | (1 | ) |  |  | (41 | )
Total |  | $ | 737 |  |  | $ | 865 |
* | Margin held represents cash collateral received related to aluminum contracts included in Level 1 and interest rate contracts included in Level 2 and margin posted represents cash collateral paid related to aluminum contracts included in Level 1. At December 31, 2010, margin posted also represents cash collateral paid related to energy contracts included in Level 3. Alcoa elected to net the margin held and posted against the fair value amounts recognized for derivative instruments executed with the same counterparties under master netting arrangements.
Schedule Of Reconciliation Of Activity For Derivative Contracts On A Net Basis |
|  | 2011 |  |  | 2010 |
Balance at beginning of year |  | $ | 779 |  |  | $ | 831 |
Total gains or losses (realized and unrealized) included in: |  |  |  |  |  |  |  |
Sales—(decrease) |  |  | (63 | ) |  |  | (38 | )
Cost of goods sold—(increase) |  |  | (15 | ) |  |  | (20 | )
Other (income) expenses, net—(increase) decrease |  |  | (43 | ) |  |  | 25 |
Other comprehensive (loss) income—(increase) |  |  | (35 | ) |  |  | (19 | )
Purchases, sales, issuances, and settlements* |  |  | (5 | ) |  |  | - |
Transfers into and (or) out of Level 3** |  |  | - |  |  |  | - |
Balance at end of year |  | $ | 618 |  |  | $ | 779 |
Total gains or losses included in earnings attributable to the change in unrealized gains or losses relating to derivative contracts still held at December 31, 2011 and 2010: |  |  |  |  |  |  |  |
Sales |  | $ | - |  |  | $ | - |
Cost of goods sold |  |  | - |  |  |  | - |
Other (income) expenses, net—(increase) decrease |  |  | (5 | ) |  |  | 22 |
* | In 2011, there was an issuance of a Level 3 financial instrument related to a natural gas supply contract (see below). There were no purchases, sales, or settlements of Level 3 financial instruments in 2011 and 2010.
** | In 2011 and 2010, there were no transfers of financial instruments into or out of Level 3.
Schedule Of Gain Or Loss On Hedged Items And Derivative Contracts |
Derivatives in Fair Value Hedging Relationships |  | Location of Gain or (Loss) Recognized in Earnings on Derivatives |  |  | Amount of Gain or (Loss) Recognized in Earnings on Derivatives |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Aluminum contracts |  |  | Sales |  |  | $ | (126 | ) |  | $ | 38 |  |  | $ | 214 |
Interest rate contracts |  |  | Interest expense |  |  |  | 64 |  |  |  | 90 |  |  |  | 61 |
Total |  |  |  |  |  | $ | (62 | ) |  | $ | 128 |  |  | $ | 275 |
Hedged Items in Fair Value Hedging Relationships |  | Location of Gain or (Loss) Recognized in Earnings on Hedged Items |  |  | Amount of Gain or (Loss) Recognized in Earnings on Hedged Items |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Aluminum contracts |  |  | Sales |  |  | $ | 133 |  |  | $ | (41 | ) |  | $ | (227 | )
Interest rate contracts |  |  | Interest expense |  |  |  | (31 | ) |  |  | (62 | ) |  |  | (61 | )
Total |  |  |  |  |  | $ | 102 |  |  | $ | (103 | ) |  | $ | (288 | )
Schedule Of Gains And Losses On Derivative Representing Either Hedge Ineffectiveness Or Hedge Components Excluded From Assessment Of Effectiveness Are Recognized In Current Earnings |
Derivatives in Cash Flow Hedging Relationships |  | Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) |  |  | Location of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) |  | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)* |  |  | Location of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) |  | Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)** |
| 2011 |  |  | 2010 |  |  | 2009 |  |  |  | 2011 |  |  | 2010 |  |  | 2009 |  |  |  | 2011 |  |  | 2010 |  |  | 2009 |
Aluminum contracts |  | $ | 72 |  |  | $ | (6 | ) |  | $ | (589 | ) |  | Sales |  | $ | (114 | ) |  | $ | (106 | ) |  | $ | (4 | ) |  | Other (income) expenses, net |  | $ | 2 |  |  | $ | - |  |  | $ | 3 |
Aluminum contracts |  |  | - |  |  |  | - |  |  |  | 13 |  |  | Other (income) expenses, net |  |  | - |  |  |  | - |  |  |  | 49 |  |  | Other (income) expenses, net |  |  | - |  |  |  | - |  |  |  | - |
Energy contracts |  |  | (3 | ) |  |  | (10 | ) |  |  | (29 | ) |  | Cost of goods sold |  |  | (8 | ) |  |  | (25 | ) |  |  | (37 | ) |  | Other (income) expenses, net |  |  | - |  |  |  | - |  |  |  | - |
Foreign exchange contracts |  |  | 1 |  |  |  | (3 | ) |  |  | (2 | ) |  | Sales |  |  | 4 |  |  |  | (6 | ) |  |  | 3 |  |  | Other (income) expenses, net |  |  | - |  |  |  | - |  |  |  | - |
Interest rate contracts |  |  | (2 | ) |  |  | (1 | ) |  |  | - |  |  | Interest expense |  |  | - |  |  |  | (1 | ) |  |  | - |  |  | Other (income) expenses, net |  |  | - |  |  |  | - |  |  |  | - |
Interest rate contracts |  |  | (5 | ) |  |  | (1 | ) |  |  | (2 | ) |  | Other (income) expenses, net |  |  | (3 | ) |  |  | - |  |  |  | - |  |  | Other (income) expenses, net |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 63 |  |  | $ | (21 | ) |  | $ | (609 | ) |  |  |  | $ | (121 | ) |  | $ | (138 | ) |  | $ | 11 |  |  |  |  | $ | 2 |  |  | $ | - |  |  | $ | 3 |
* | Assuming market rates remain constant with the rates at December 31, 2011, a gain of $22 is expected to be recognized in earnings over the next 12 months.
** | In 2011, 2010, and 2009, the amount of gain or (loss) recognized in earnings represents $(1), less than $1, and $3, respectively, related to the ineffective portion of the hedging relationships. There was also $3 recognized in earnings related to the amount excluded from the assessment of hedge effectiveness in 2011.
Schedule Of Outstanding Forward Contracts That Were Entered Into Hedge Forcasted Transactions |
December 31, |  | 2011 |  |  | 2010 |
Aluminum contracts (kmt) |  |  | 1,294 |  |  |  | 1,285 |
Energy contracts (electricity—megawatt hours) |  |  | 100,578,295 |  |  |  | 100,578,295 |
Foreign exchange contracts |  | $ | - |  |  | $ | 20 |
Schedule Of Fair Value Gains And Losses On Derivatives Contracts Recorded In Earnings |
Derivatives Not Designated as Hedging Instruments |  | Location of Gain or (Loss) Recognized in Earnings on Derivatives |  | Amount of Gain or (Loss) Recognized in Earnings on Derivatives |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Aluminum contracts |  | Sales |  | $ | (13 | ) |  | $ | 5 |  |  | $ | (9 | )
Aluminum contracts |  | Other (income) expenses, net |  |  | 13 |  |  |  | (18 | ) |  |  | (38 | )
Embedded credit derivative |  | Other (income) expenses, net |  |  | (5 | ) |  |  | (2 | ) |  |  | - |
Energy contract |  | Other (income) expenses, net |  |  | 47 |  |  |  | (23 | ) |  |  | (30 | )
Foreign exchange contracts |  | Other (income) expenses, net |  |  | (3 | ) |  |  | 6 |  |  |  | 6 |
Total |  |  |  | $ | 39 |  |  | $ | (32 | ) |  | $ | (71 | )
Schedule Of Carrying Values And Fair Values Of Other Financial Instruments |
December 31, |  | 2011 |  |  | 2010 |
| Carrying value |  |  | Fair value |  |  | Carrying value |  |  | Fair value |
Cash and cash equivalents |  | $ | 1,939 |  |  | $ | 1,939 |  |  | $ | 1,543 |  |  | $ | 1,543 |
Restricted cash |  |  | 25 |  |  |  | 25 |  |  |  | 1 |  |  |  | 1 |
Noncurrent receivables |  |  | 30 |  |  |  | 30 |  |  |  | 23 |  |  |  | 23 |
Available-for-sale securities |  |  | 92 |  |  |  | 92 |  |  |  | 93 |  |  |  | 93 |
Short-term borrowings |  |  | 62 |  |  |  | 62 |  |  |  | 92 |  |  |  | 92 |
Commercial paper |  |  | 224 |  |  |  | 224 |  |  |  | - |  |  |  | - |
Long-term debt due within one year |  |  | 445 |  |  |  | 445 |  |  |  | 231 |  |  |  | 231 |
Long-term debt, less amount due within one year |  |  | 8,640 |  |  |  | 9,274 |  |  |  | 8,842 |  |  |  | 9,882 |

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