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Discontinued Operations and Assets Held for Sale
 12 Months Ended
Dec. 31, 2012
Discontinued Operations and Assets Held for Sale

B. Discontinued Operations and Assets Held for Sale

For the years ended December 31, 2012, 2011, and 2010, there were no active businesses classified as discontinued operations in the accompanying Statement of Consolidated Operations.

The following table details selected financial information of discontinued operations:

 

      2012      2011     2010  

Sales

    $ -       $ -      $ -   

Loss from operations before income taxes

    $ -       $ (4 )    $ (11 ) 

Benefit for income taxes

      -         1        3   

Loss from discontinued operations

    $ -       $ (3 )    $ (8 ) 

In 2011, discontinued operations included an additional loss of $3 ($5 pretax) related to the wire harness and electrical portion (divested in June 2009) of the Electrical and Electronic Solutions (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 (divested in December 2009) 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.

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. Additionally, assets of the Tapoco Hydroelectric Project (“Tapoco”), along with an allocation of goodwill from the Primary Metals reporting unit, were classified as held for sale as of December 31, 2011.

In June 2012, management committed to a plan to sell the assets, consisting of properties, plants, and equipment and intangible assets, of Tapoco. As a result, these assets were reclassified to held for sale. The Consolidated Financial Statements for all prior periods presented were reclassified to reflect this change. In November 2012, Alcoa completed the sale of Tapoco (see Note F).

 

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

 

December 31,    2012      2011  

Assets:

      

Properties, plants, and equipment

    $ 2       $ 136   

Goodwill

      -         94   

Other assets

      -         13   

Assets held for sale*

    $ 2       $ 243   

Liabilities:

      

Accounts payable, trade

    $ -       $ 1   

Accrued expenses

      1         5   

Liabilities of operations held for sale*

    $ 1       $ 6   
* 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.