XML 57 R11.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Restructuring And Other Charges | 9 Months Ended
--- | ---
Sep. 30, 2012
Restructuring And Other Charges | C. Restructuring and Other Charges – In the third quarter and nine-month period of 2012, Alcoa recorded Restructuring and other charges of $2 ($2 after-tax) and $27 ($19 after-tax and noncontrolling interests), respectively. Restructuring and other charges in the 2012 third quarter included $3 ($2 after-tax) for the layoff of approximately 20 employees (Primary Metals segment), including additional employees related to the previously reported smelter curtailments in Spain, and $1 (less than $1 after-tax) for the reversal of a number of small layoff reserves related to prior periods. In the 2012 nine-month period, Restructuring and other charges included $20 ($14 after-tax and noncontrolling interests) for the layoff of approximately 350 employees (180 in the Primary Metals segment, 70 in the Engineered Products and Solutions segment, 25 in the Alumina segment, and 75 in Corporate), including $9 ($6 after-tax) for the layoff of an additional 160 employees related to the previously reported smelter curtailments in Spain; $9 ($5 after-tax) for lease termination costs; $2 ($2 after-tax) in other miscellaneous charges; and $4 ($2 after-tax and noncontrolling interests) for the reversal of a number of small layoff reserves related to prior periods. In the third quarter and nine-month period of 2011, Alcoa recorded Restructuring and other charges of $9 ($5 after-tax and noncontrolling interests) and $49 ($26 after-tax and noncontrolling interests), respectively. Restructuring and other charges in the 2011 third quarter included $18 ($11 after-tax and noncontrolling interests) for the layoff of approximately 150 employees (70 in the Global Rolled Products segment, 40 in the Primary Metals segment, 30 in the Alumina segment, and 10 in Corporate); a net charge of $1 (less than $1 after-tax) for other small items; and $10 ($6 after-tax) for the reversal of previously recorded layoff reserves, primarily related to a change in plans for Alcoa’s aluminum powder facility in Rockdale, TX. In the 2011 nine-month period, Restructuring and other charges included $31 ($19 after-tax and noncontrolling interests) for the layoff of approximately 630 employees (420 in the Global Rolled Products segment, 110 in the Primary Metals segment, 60 in the Alumina segment, 30 in the Engineered Products and Solutions segment, and 10 in Corporate); $20 ($8 after-tax and noncontrolling interests) for a litigation matter related to the former St. Croix location (see the Litigation section of Note G); an $8 ($5 after-tax) charge for an adjustment to the fair value of the one remaining foil location classified as held for sale due to foreign currency movements (this business was removed from held for sale classification in the fourth quarter of 2011); a net charge of $4 ($3 after-tax) for other small items; and $14 ($9 after-tax) for the reversal of previously recorded layoff reserves, primarily related to a change in plans for Alcoa’s aluminum powder facility in Rockdale, TX. Alcoa does not include Restructuring and other charges in the results of its reportable segments. The pretax impact of allocating such charges to segment results would have been as follows:
|  | Third quarter ended September 30, |  |  | Nine months ended September 30, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Alumina |  | $ | — |  |  | $ | 6 |  |  | $ | 1 |  |  | $ | 32 |
Primary Metals |  |  | 3 |  |  |  | (6 | ) |  |  | 9 |  |  |  | (4 | )
Global Rolled Products |  |  | — |  |  |  | 5 |  |  |  | 1 |  |  |  | 7 |
Engineered Products and Solutions |  |  | — |  |  |  | (2 | ) |  |  | 3 |  |  |  | 1 |
Segment total |  |  | 3 |  |  |  | 3 |  |  |  | 14 |  |  |  | 36 |
Corporate |  |  | (1 | ) |  |  | 6 |  |  |  | 13 |  |  |  | 13 |
Total restructuring and other charges |  | $ | 2 |  |  | $ | 9 |  |  | $ | 27 |  |  | $ | 49 |
As of September 30, 2012, approximately 90 of the 350 employees associated with 2012 restructuring programs, approximately 770 of the 1,600 employees associated with 2011 restructuring programs, approximately 820 of the 875 employees associated with 2010 restructuring programs, and approximately 5,900 of the 6,000 employees associated with 2009 restructuring programs were separated. The remaining separations for a portion of the 2012 and 2011 restructuring programs and all of the 2010 and 2009 restructuring programs are expected to be completed by the end of 2012. In the 2012 third quarter and nine-month period, cash payments of $3 and $6, respectively, were made against the layoff reserves related to the 2012 restructuring programs; $7 and $21, respectively, were made against the layoff reserves related to the 2011 restructuring programs; and $1 and $3, respectively, were made against the layoff reserves related to the 2010 restructuring programs. Activity and reserve balances for restructuring charges were as follows:
|  | Layoff costs |  |  | Other exit costs |  |  | Total |
Reserve balances at December 31, 2010 |  | $ | 53 |  |  | $ | 63 |  |  | $ | 116 |
2011: |  |  |  |  |  |  |  |  |  |  |  |
Cash payments |  |  | (45 | ) |  |  | (9 | ) |  |  | (54 | )
Restructuring charges |  |  | 93 |  |  |  | 37 |  |  |  | 130 |
Other* |  |  | (24 | ) |  |  | (34 | ) |  |  | (58 | )
Reserve balances at December 31, 2011 |  |  | 77 |  |  |  | 57 |  |  |  | 134 |
2012: |  |  |  |  |  |  |  |  |  |  |  |
Cash payments |  |  | (31 | ) |  |  | (8 | ) |  |  | (39 | )
Restructuring charges |  |  | 20 |  |  |  | 2 |  |  |  | 22 |
Other* |  |  | (6 | ) |  |  | (1 | ) |  |  | (7 | )
Reserve balances at September 30, 2012 |  | $ | 60 |  |  | $ | 50 |  |  | $ | 110 |
* | Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation.
The remaining reserves are expected to be paid in cash during 2012, with the exception of approximately $70 to $75, which is expected to be paid over the next several years for lease termination costs, special separation benefit payments, and ongoing site remediation work. This range now includes future payments related to the curtailments of the smelters in Italy and Spain.

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration