XML 37 R22.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Pension and Other Postretirement Benefits | 6 Months Ended
--- | ---
Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract] |
Pension and Other Postretirement Benefits | N. Pension and Other Postretirement Benefits – The components of net periodic benefit cost were as follows:
|  | Second quarter ended June 30, |  |  | Six months ended June 30, |
Pension benefits |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Service cost |  | $ | 41 |  |  | $ | 44 |  |  | $ | 81 |  |  | $ | 88 |
Interest cost |  |  | 122 |  |  |  | 145 |  |  |  | 244 |  |  |  | 289 |
Expected return on plan assets |  |  | (186 | ) |  |  | (189 | ) |  |  | (371 | ) |  |  | (377 | )
Recognized net actuarial loss |  |  | 102 |  |  |  | 117 |  |  |  | 204 |  |  |  | 235 |
Amortization of prior service cost |  |  | 4 |  |  |  | 4 |  |  |  | 8 |  |  |  | 8 |
Settlements* |  |  | 2 |  |  |  | — |  |  |  | 2 |  |  |  | 1 |
Special termination benefits* |  |  | — |  |  |  | 10 |  |  |  | 1 |  |  |  | 12 |
Net periodic benefit cost |  | $ | 85 |  |  | $ | 131 |  |  | $ | 169 |  |  | $ | 256 |
* | Except for Settlements of $2 in both the second quarter and six months ended June 30, 2016, these amounts were recorded in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D).
|  | Second quarter ended June 30, |  |  | Six months ended June 30, |
Other postretirement benefits |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Service cost |  | $ | 4 |  |  | $ | 4 |  |  | $ | 7 |  |  | $ | 7 |
Interest cost |  |  | 19 |  |  |  | 23 |  |  |  | 37 |  |  |  | 46 |
Recognized net actuarial loss |  |  | 5 |  |  |  | 5 |  |  |  | 11 |  |  |  | 9 |
Amortization of prior service benefit |  |  | (7 | ) |  |  | (10 | ) |  |  | (13 | ) |  |  | (19 | )
Curtailments* |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | (1 | )
Special termination benefits* |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 1 |
Net periodic benefit cost |  | $ | 21 |  |  | $ | 22 |  |  | $ | 42 |  |  | $ | 43 |
* | These amounts were recorded in Restructuring and other charges on the accompanying Statement of Consolidated Operations (see Note D).
In conjunction with the annual measurement of the funded status of Alcoa’s pension and other postretirement benefit plans at December 31, 2015, management elected to change the manner in which the interest cost component of net periodic benefit cost is determined in 2016 and beyond. Previously, the interest cost component was determined by multiplying the single equivalent rate and the aggregate discounted cash flows of the plans’ projected benefit obligations. Under the new methodology, the interest cost component is determined by aggregating the product of the discounted cash flows of the plans’ projected benefit obligations for each year and an individual spot rate (referred to as the “spot rate” approach). In the 2016 second quarter and six-month period, this change resulted in a lower interest cost component of net periodic benefit cost under the new methodology compared to the previous methodology of $24 and $48, respectively, for pension plans and $4 and $8, respectively, for other postretirement benefit plans. Management believes this new methodology, which represents a change in an accounting estimate, is a better measure of the interest cost as each year’s cash flows are specifically linked to the interest rates of bond payments in the same respective year.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65877416&loc=SL14450702-114947 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66047640&loc=d3e39622-114963 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration