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Discontinued Operations And Assets Held For Sale
 12 Months Ended
Dec. 31, 2011
Discontinued Operations And Assets Held For Sale [Abstract]  
Discontinued Operations And Assets Held For Sale

B. Discontinued Operations and Assets Held for Sale

For the years ended December 31, 2011 and 2010, there were no active businesses classified as discontinued operations. The Electrical and Electronic Solutions (EES) business was the only active business classified as discontinued operations in the accompanying Statement of Consolidated Operations for the year ended December 31, 2009.

In late 2008, Alcoa reclassified the EES business to discontinued operations based on the decision to divest the business. The divestiture of the wire harness and electrical portion of the EES business was completed in June 2009 and the divestiture of the electronics portion of the EES business was completed in December 2009 (see Note F). The results of the Engineered Products and Solutions segment were reclassified to reflect the movement of the EES business into discontinued operations.

The following table details selected financial information of discontinued operations:

 

      2011     2010     2009  

Sales

    $ -      $ -      $ 306   

Loss from operations before income taxes

    $ (4 )    $ (11 )    $ (221 ) 

Benefit for income taxes

      1        3        55   

Loss from discontinued operations

    $ (3 )    $ (8 )    $ (166 ) 

In 2011, discontinued operations included an additional loss of $3 ($5 pretax) related to the wire harness and electrical portion of the EES business as a result of a negotiated preliminary settlement related to claims filed in 2010 against Alcoa by Platinum Equity in an insolvency proceeding in Germany, a net gain of $2 ($3 pretax) related to both the wire harness and electrical portion and the electronics portion of the EES business for a number of small post-closing and other adjustments, and a $2 ($2 pretax) reversal of the gain recognized in 2006 related to the sale of the home exteriors business for an adjustment to an outstanding obligation, which was part of the terms of sale. In 2010, discontinued operations included an additional loss of $6 ($9 pretax) related to the wire harness and electrical portion of the EES business as a result of a contract settlement with a former customer of this business and an additional loss of $2 ($4 pretax) related to the electronics portion of the EES business for the settling of working capital, which was not included in the divestiture transaction. In 2009, discontinued operations was comprised of a $129 ($168 pretax) loss on the divestiture of the wire harness and electrical portion of the EES business, a $9 ($13 pretax) loss on the divestiture of the electronics portion of the EES business, and the remainder was for the operational results of the EES business prior to the divestitures.

For both periods presented in the accompanying Consolidated Balance Sheet, the assets and liabilities of operations classified as held for sale included the electronics portion of the EES business (working capital components) and the Hawesville, KY automotive casting facility. In late 2011, management made the decision to no longer commit to a plan to sell the one remaining plant of the Global Foil business located in Brazil. Instead, management intends to refocus efforts to drive higher profitability and to consider expanding the functionality of the plant to manufacture certain products aimed at capturing new growth in Brazil. As a result, the assets and liabilities related to this plant were removed from held for sale classification. The Consolidated Financial Statements for all prior periods presented were reclassified to reflect this change.

 

The major classes of assets and liabilities of operations held for sale were as follows:

December 31,    2011      2010  

Assets:

      

Receivables

    $ -       $ 2   

Properties, plants, and equipment

      2         2   

Other assets

      -         2   

Assets held for sale*

    $ 2       $ 6   

Liabilities:

      

Accounts payable, trade

    $ 1       $ 1   

Accrued expenses

      5         15   

Liabilities of operations held for sale*

    $ 6       $ 16   
* Assets held for sale were included in Other noncurrent assets and Liabilities of operations held for sale were included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet.