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Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2021
Segment Reporting [Abstract] |
Segment Information | E. Segment Information – Alcoa Corporation is a producer of bauxite, alumina, and aluminum products. The Company’s operations consist of three worldwide reportable segments: 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 EBITDA (Earnings before interest, taxes, depreciation, and amortization) 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 believes that the presentation of Adjusted EBITDA is useful to investors because such measure provides both additional information about the operating performance of Alcoa Corporation and insight on the ability of Alcoa Corporation to meet its financial obligations. The presentation of Adjusted EBITDA is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Alcoa Corporation’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies. 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 |
Second quarter ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 39 |  |  | $ | 688 |  |  | $ | 2,102 |  |  | $ | 2,829 |
Intersegment sales |  |  | 179 |  |  |  | 343 |  |  |  | 3 |  |  |  | 525 |
Total sales |  | $ | 218 |  |  | $ | 1,031 |  |  | $ | 2,105 |  |  | $ | 3,354 |
Segment Adjusted EBITDA |  | $ | 41 |  |  | $ | 124 |  |  | $ | 460 |  |  | $ | 625 |
Supplemental information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion, and amortization |  | $ | 32 |  |  | $ | 50 |  |  | $ | 73 |  |  | $ | 155 |
Equity (loss) income |  | $ | — |  |  | $ | (1 | ) |  | $ | 28 |  |  | $ | 27 |
Second quarter ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 66 |  |  | $ | 603 |  |  | $ | 1,475 |  |  | $ | 2,144 |
Intersegment sales |  |  | 245 |  |  |  | 289 |  |  |  | 2 |  |  | $ | 536 |
Total sales |  | $ | 311 |  |  | $ | 892 |  |  | $ | 1,477 |  |  | $ | 2,680 |
Segment Adjusted EBITDA |  | $ | 131 |  |  | $ | 88 |  |  | $ | (34 | ) |  | $ | 185 |
Supplemental information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion, and amortization |  | $ | 30 |  |  | $ | 37 |  |  | $ | 79 |  |  | $ | 146 |
Equity loss |  | $ | — |  |  | $ | (8 | ) |  | $ | (12 | ) |  | $ | (20 | )
|  | Bauxite |  |  | Alumina |  |  | Aluminum |  |  | Total |
Six months ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 97 |  |  | $ | 1,448 |  |  | $ | 4,149 |  |  | $ | 5,694 |
Intersegment sales |  |  | 364 |  |  |  | 707 |  |  |  | 5 |  |  |  | 1,076 |
Total sales |  | $ | 461 |  |  | $ | 2,155 |  |  | $ | 4,154 |  |  | $ | 6,770 |
Segment Adjusted EBITDA |  | $ | 100 |  |  | $ | 351 |  |  | $ | 743 |  |  | $ | 1,194 |
Supplemental information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion, and amortization |  | $ | 89 |  |  | $ | 96 |  |  | $ | 146 |  |  | $ | 331 |
Equity (loss) income |  |  | — |  |  |  | (6 | ) |  |  | 41 |  |  |  | 35 |
Six months ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 137 |  |  | $ | 1,310 |  |  | $ | 3,073 |  |  | $ | 4,520 |
Intersegment sales |  |  | 480 |  |  |  | 625 |  |  |  | 5 |  |  |  | 1,110 |
Total sales |  | $ | 617 |  |  | $ | 1,935 |  |  | $ | 3,078 |  |  | $ | 5,630 |
Segment Adjusted EBITDA |  | $ | 251 |  |  | $ | 281 |  |  | $ | 28 |  |  | $ | 560 |
Supplemental information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion, and amortization |  | $ | 64 |  |  | $ | 86 |  |  | $ | 160 |  |  | $ | 310 |
Equity loss |  |  | — |  |  |  | (17 | ) |  |  | (7 | ) |  |  | (24 | )
The following table reconciles total Segment Adjusted EBITDA to Consolidated net income (loss) attributable to Alcoa Corporation:
|  | Second quarter ended June 30, |  |  | Six months ended June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Total Segment Adjusted EBITDA |  | $ | 625 |  |  | $ | 185 |  |  | $ | 1,194 |  |  | $ | 560 |
Unallocated amounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Transformation(1) |  |  | (13 | ) |  |  | (10 | ) |  |  | (24 | ) |  |  | (26 | )
Intersegment eliminations |  |  | 35 |  |  |  | 30 |  |  |  | 28 |  |  |  | 22 |
Corporate expenses(2) |  |  | (28 | ) |  |  | (21 | ) |  |  | (54 | ) |  |  | (48 | )
Provision for depreciation, depletion, and amortization |  |  | (161 | ) |  |  | (152 | ) |  |  | (343 | ) |  |  | (322 | )
Restructuring and other charges, net (D) |  |  | (33 | ) |  |  | (37 | ) |  |  | (40 | ) |  |  | (39 | )
Interest expense |  |  | (67 | ) |  |  | (32 | ) |  |  | (109 | ) |  |  | (62 | )
Other income (expenses), net (Q) |  |  | 105 |  |  |  | (51 | ) |  |  | 129 |  |  |  | 81 |
Other(3) |  |  | (2 | ) |  |  | (17 | ) |  |  | (8 | ) |  |  | (52 | )
Consolidated income (loss) before income taxes |  |  | 461 |  |  |  | (105 | ) |  |  | 773 |  |  |  | 114 |
Provision for income taxes |  |  | (111 | ) |  |  | (45 | ) |  |  | (204 | ) |  |  | (125 | )
Net income attributable to noncontrolling interest |  |  | (41 | ) |  |  | (47 | ) |  |  | (85 | ) |  |  | (106 | )
Consolidated net income (loss) attributable to Alcoa Corporation |  | $ | 309 |  |  | $ | (197 | ) |  | $ | 484 |  |  | $ | (117 | )
(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 impact Cost of goods sold on Alcoa Corporation’s Statement of Consolidated Operations that are not included in the Adjusted EBITDA of the reportable segments.
The following table details Alcoa Corporation’s Sales by product division:
|  | Second quarter ended June 30, |  |  | Six months ended June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Primary aluminum |  | $ | 2,112 |  |  | $ | 1,202 |  |  | $ | 3,839 |  |  | $ | 2,499 |
Alumina |  |  | 684 |  |  |  | 600 |  |  |  | 1,444 |  |  |  | 1,307 |
Flat-rolled aluminum(1) |  |  | — |  |  |  | 271 |  |  |  | 320 |  |  |  | 543 |
Energy |  |  | 49 |  |  |  | 22 |  |  |  | 88 |  |  |  | 74 |
Bauxite |  |  | 34 |  |  |  | 61 |  |  |  | 86 |  |  |  | 120 |
Other(2) |  |  | (46 | ) |  |  | (8 | ) |  |  | (74 | ) |  |  | (14 | )
|  | $ | 2,833 |  |  | $ | 2,148 |  |  | $ | 5,703 |  |  | $ | 4,529 |
(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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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