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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Components of (Loss) Income from Continuing Operations Before Income Taxes | The components of (loss) income from continuing operations before income taxes were as follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
U.S. |  | $ | (1,269 | ) |  | $ | 394 |  |  | $ | (98 | )
Foreign |  |  | (547 | ) |  |  | (70 | ) |  |  | 1,161 |
|  | $ | (1,816 | ) |  | $ | 324 |  |  | $ | 1,063 |
Schedule of Provision for Income Taxes on Income from Continuing Operations | The provision for income taxes on income from continuing operations consisted of the following:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal* |  | $ | 14 |  |  | $ | 85 |  |  | $ | 10 |
Foreign |  |  | 235 |  |  |  | 167 |  |  |  | 427 |
State and local |  |  | 1 |  |  |  | 9 |  |  |  | (1 | )
|  |  | 250 |  |  |  | 261 |  |  |  | 436 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal* |  |  | 84 |  |  |  | 129 |  |  |  | 28 |
Foreign |  |  | 95 |  |  |  | (227 | ) |  |  | (211 | )
State and local |  |  | (1 | ) |  |  | (1 | ) |  |  | 2 |
|  |  | 178 |  |  |  | (99 | ) |  |  | (181 | )
Total |  | $ | 428 |  |  | $ | 162 |  |  | $ | 255 |
* | Includes U.S. taxes related to foreign income
Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate for Continuing Operations | A reconciliation of the U.S. federal statutory rate to Alcoa’s effective tax rate for continuing operations was as follows (the effective tax rate for 2013 was a provision on a loss and for both 2012 and 2011 was a provision on income):
|  | 2013 |  |  | 2012 |  |  | 2011 |
U.S. federal statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Taxes on foreign operations |  |  | (0.3 | ) |  |  | (0.1 | ) |  |  | (11.0 | )
Permanent differences on restructuring and other charges and asset disposals |  |  | (0.8 | ) |  |  | 10.8 |  |  |  | - |
Audit and other adjustments to prior years’ accruals |  |  | (0.9 | ) |  |  | 3.5 |  |  |  | (1.1 | )
Noncontrolling interests |  |  | (3.1 | ) |  |  | 3.8 |  |  |  | 0.8 |
Statutory tax rate and law changes |  |  | 0.6 |  |  |  | (0.4 | ) |  |  | 0.8 |
Changes in valuation allowances |  |  | (23.2 | ) |  |  | 15.2 |  |  |  | 2.3 |
Impairment of goodwill |  |  | (33.3 | ) |  |  | - |  |  |  | - |
Amortization of goodwill related to intercompany stock sales/reorganizations |  |  | 1.1 |  |  |  | (7.7 | ) |  |  | (2.8 | )
Change in legal structure of investments |  |  | - |  |  |  | (4.1 | ) |  |  | - |
Interest income related to income tax positions |  |  | - |  |  |  | (1.3 | ) |  |  | (0.2 | )
Company-owned life insurance/split-dollar net premiums |  |  | 1.1 |  |  |  | (3.9 | ) |  |  | (0.2 | )
Other |  |  | 0.2 |  |  |  | (0.8 | ) |  |  | 0.4 |
Effective tax rate |  |  | (23.6 | )% |  |  | 50.0 | % |  |  | 24.0 | %
Schedule of Components of Net Deferred Tax Assets and Liabilities | The components of net deferred tax assets and liabilities were as follows:
|  | 2013 |  |  | 2012 |
December 31, |  | Deferred tax assets |  |  | Deferred tax liabilities |  |  | Deferred tax assets |  |  | Deferred tax liabilities |
Depreciation |  | $ | 185 |  |  | $ | 1,150 |  |  | $ | 104 |  |  | $ | 1,015 |
Employee benefits |  |  | 2,499 |  |  |  | 36 |  |  |  | 2,742 |  |  |  | 46 |
Loss provisions |  |  | 437 |  |  |  | 14 |  |  |  | 368 |  |  |  | 17 |
Deferred income/expense |  |  | 87 |  |  |  | 188 |  |  |  | 53 |  |  |  | 203 |
Tax loss carryforwards |  |  | 2,229 |  |  |  | - |  |  |  | 2,186 |  |  |  | - |
Tax credit carryforwards |  |  | 567 |  |  |  | - |  |  |  | 508 |  |  |  | - |
Derivatives and hedging activities |  |  | 74 |  |  |  | 25 |  |  |  | 117 |  |  |  | 16 |
Other |  |  | 310 |  |  |  | 261 |  |  |  | 324 |  |  |  | 297 |
|  |  | 6,388 |  |  |  | 1,674 |  |  |  | 6,402 |  |  |  | 1,594 |
Valuation allowance |  |  | (1,804 | ) |  |  | - |  |  |  | (1,400 | ) |  |  | - |
|  | $ | 4,584 |  |  | $ | 1,674 |  |  | $ | 5,002 |  |  | $ | 1,594 |
Schedule of Expiration Periods of Deferred Tax Assets | The following table details the expiration periods of the deferred tax assets presented above:
December 31, 2013 |  | Expires within 10 years |  |  | Expires within 11-20 years |  |  | No expiration* |  |  | Other* |  |  | Total |
Tax loss carryforwards |  | $ | 377 |  |  | $ | 898 |  |  | $ | 954 |  |  | $ | - |  |  | $ | 2,229 |
Tax credit carryforwards |  |  | 417 |  |  |  | 75 |  |  |  | 75 |  |  |  | - |  |  |  | 567 |
Other |  |  | - |  |  |  | - |  |  |  | 498 |  |  |  | 3,094 |  |  |  | 3,592 |
Valuation allowance |  |  | (412 | ) |  |  | (843 | ) |  |  | (268 | ) |  |  | (281 | ) |  |  | (1,804 | )
|  | $ | 382 |  |  | $ | 130 |  |  | $ | 1,259 |  |  | $ | 2,813 |  |  | $ | 4,584 |
* | Deferred tax assets with no expiration may still have annual limitations on utilization. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. A substantial amount of Other relates to employee benefits that will become deductible for tax purposes over an extended period of time as contributions are made to employee benefit plans and payments are made to retirees.
Schedule of Changes in Valuation Allowance | The following table details the changes in the valuation allowance:
December 31, |  | 2013 |  |  | 2012 |  |  | 2011 |
Balance at beginning of year |  | $ | 1,400 |  |  | $ | 1,398 |  |  | $ | 1,268 |
Increase to allowance |  |  | 471 |  |  |  | 45 |  |  |  | 157 |
Release of allowance |  |  | (41 | ) |  |  | (31 | ) |  |  | (31 | )
U.S. state tax apportionment and tax rate changes |  |  | (32 | ) |  |  | (17 | ) |  |  | 6 |
Foreign currency translation |  |  | 6 |  |  |  | 5 |  |  |  | (2 | )
Balance at end of year |  | $ | 1,804 |  |  | $ | 1,400 |  |  | $ | 1,398 |
Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows:
December 31, |  | 2013 |  |  | 2012 |  |  | 2011 |
Balance at beginning of year |  | $ | 66 |  |  | $ | 51 |  |  | $ | 46 |
Additions for tax positions of the current year |  |  | 2 |  |  |  | - |  |  |  | - |
Additions for tax positions of prior years |  |  | 11 |  |  |  | 39 |  |  |  | 13 |
Reductions for tax positions of prior years |  |  | (2 | ) |  |  | (7 | ) |  |  | (3 | )
Settlements with tax authorities |  |  | (8 | ) |  |  | (18 | ) |  |  | (4 | )
Expiration of the statute of limitations |  |  | (2 | ) |  |  | - |  |  |  | - |
Foreign currency translation |  |  | (4 | ) |  |  | 1 |  |  |  | (1 | )
Balance at end of year |  | $ | 63 |  |  | $ | 66 |  |  | $ | 51 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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