v3.26.1
Pension and Other Postretirement Benefits
 6 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits

K. 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

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Service cost

 

$

1

 

 

$

1

 

 

$

3

 

 

$

3

 

Interest cost(1)

 

 

24

 

 

 

25

 

 

 

47

 

 

 

50

 

Expected return on plan assets(1)

 

 

(29

)

 

 

(31

)

 

 

(59

)

 

 

(62

)

Recognized net actuarial loss(1)

 

 

11

 

 

 

9

 

 

 

22

 

 

 

18

 

Net periodic benefit cost

 

$

7

 

 

$

4

 

 

$

13

 

 

$

9

 

 

 

 

Second quarter ended
June 30,

 

 

Six months ended
June 30,

 

Other postretirement benefits

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Service cost

 

$

1

 

 

$

1

 

 

$

1

 

 

$

1

 

Interest cost(1)

 

 

5

 

 

 

6

 

 

 

10

 

 

 

11

 

Recognized net actuarial loss(1)

 

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

Amortization of prior service benefit(1)

 

 

(3

)

 

 

(3

)

 

 

(5

)

 

 

(6

)

Net periodic benefit cost

 

$

4

 

 

$

5

 

 

$

8

 

 

$

8

 
(1)
These amounts were reported in Other expenses (income), net on the accompanying Statement of Consolidated Operations (see Note O).

Funding and Cash Flows. It is Alcoa’s policy to fund amounts for defined benefit pension plans sufficient to meet the minimum requirements set forth in each applicable country’s benefits laws and tax laws, including the Employee Retirement Income Security Act of 1974 (ERISA) for U.S. plans. From time to time, the Company contributes additional amounts as deemed appropriate.

Under ERISA regulations, a plan sponsor that establishes a pre-funding balance by making discretionary contributions to a U.S. defined benefit pension plan may elect to apply all or a portion of this balance toward its minimum required contribution obligations to the related plan in future years.

In the first and second quarters of 2026, management made such elections related to the Company’s U.S. plans and intends to do so for the remainder of 2026. As a result, Alcoa’s minimum required contribution to defined benefit pension plans in 2026 is estimated to be approximately $12, of which $3 was contributed to non-U.S. plans during the second quarter of 2026. In the six-month period of 2026, $6 was contributed to non-U.S. plans.

In the second quarter and six-month period of 2025, $2 and $14, respectively, were contributed to non-U.S. plans.