XML 76 R10.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Recently Adopted and Recently Issued Accounting Guidance | 3 Months Ended
--- | ---
Mar. 31, 2013
Recently Adopted and Recently Issued Accounting Guidance | B. Recently Adopted and Recently Issued Accounting Guidance Adopted On January 1, 2013, Alcoa adopted changes issued by the Financial Accounting Standards Board (FASB) to the testing of indefinite-lived intangible assets for impairment, similar to the goodwill changes adopted in October 2011. These changes provide an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the fair value of an indefinite-lived intangible asset is less than its carrying amount. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the existing two-step quantitative impairment test, otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. Notwithstanding the adoption of these changes, management plans to proceed directly to the two-step quantitative test for Alcoa’s indefinite-lived intangible assets. The adoption of these changes had no impact on the Consolidated Financial Statements. On January 1, 2013, Alcoa adopted changes issued by the FASB to the disclosure of offsetting assets and liabilities. These changes require an entity to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The enhanced disclosures will enable users of an entity’s financial statements to understand and evaluate the effect or potential effect of master netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. Other than the additional disclosure requirements (see Note M), the adoption of these changes had no impact on the Consolidated Financial Statements. On January 1, 2013, Alcoa adopted changes issued by the FASB to the reporting of amounts reclassified out of accumulated other comprehensive income. These changes require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. These requirements are to be applied to each component of accumulated other comprehensive income. Other than the additional disclosure requirements (see below), the adoption of these changes had no impact on the Consolidated Financial Statements. The changes in Accumulated other comprehensive loss by component were as follows:
|  | Alcoa |  |  | Noncontrolling Interests |
|  | First quarter ended March 31, |  |  | First quarter ended March 31, |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Pension and other postretirement benefits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (4,063 | ) |  | $ | (3,533 | ) |  | $ | (77 | ) |  | $ | (99 | )
Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrecognized net actuarial loss and prior service cost/benefit |  |  | 11 |  |  |  | (13) |  |  |  | — |  |  |  | — |
Tax (expense) benefit |  |  | (3) |  |  |  | 3 |  |  |  | — |  |  |  | — |
Total Other comprehensive income before reclassifications, net of tax |  |  | 8 |  |  |  | (10) |  |  |  | — |  |  |  | — |
Amortization of net actuarial loss and prior service cost/benefit(1) |  |  | 132 |  |  |  | 101 |  |  |  | 1 |  |  |  | 2 |
Tax (expense) benefit(2) |  |  | (45 | ) |  |  | (35 | ) |  |  | — |  |  |  | — |
Total amount reclassified from Accumulated other comprehensive loss, net of tax(6) |  |  | 87 |  |  |  | 66 |  |  |  | 1 |  |  |  | 2 |
Total Other comprehensive income |  |  | 95 |  |  |  | 56 |  |  |  | 1 |  |  |  | 2 |
Balance at end of period |  | $ | (3,968 | ) |  | $ | (3,477 | ) |  | $ | (76 | ) |  | $ | (97 | )
Foreign currency translation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 1,147 |  |  | $ | 1,349 |  |  | $ | 257 |  |  | $ | 351 |
Other comprehensive (loss) income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustments(3) |  |  | (116 | ) |  |  | 244 |  |  |  | 16 |  |  |  | 65 |
Balance at end of period |  | $ | 1,031 |  |  | $ | 1,593 |  |  | $ | 273 |  |  | $ | 416 |
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net unrealized holding (loss) gain |  |  | (1 | ) |  |  | 3 |  |  |  | — |  |  |  | — |
Tax benefit (expense) |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | — |
Total Other comprehensive (loss) income before reclassifications, net of tax |  |  | (1 | ) |  |  | 2 |  |  |  | — |  |  |  | — |
Net amount reclassified to earnings(4) |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |
Tax benefit (expense)(2) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total amount reclassified from Accumulated other comprehensive income, net of tax(6) |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |
Total Other comprehensive income |  |  | 1 |  |  |  | 2 |  |  |  | — |  |  |  | — |
Balance at end of period |  | $ | 4 |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |
Cash flow hedges (M) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | (489 | ) |  | $ | (443 | ) |  | $ | (5 | ) |  | $ | (4 | )
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net change from periodic revaluations |  |  | 136 |  |  |  | (103 | ) |  |  | 3 |  |  |  | (3 | )
Tax (expense) benefit |  |  | (29 | ) |  |  | 21 |  |  |  | (1 | ) |  |  | 1 |
Total Other comprehensive income (loss) before reclassifications, net of tax |  |  | 107 |  |  |  | (82 | ) |  |  | 2 |  |  |  | (2 | )
Net amount reclassified to earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aluminum contracts(5) |  |  | 7 |  |  |  | — |  |  |  | — |  |  |  | — |
Interest rate contracts(4) |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | — |
Sub-total |  |  | 7 |  |  |  | (1 | ) |  |  | — |  |  |  | — |
Tax (expense) benefit(2) |  |  | (1 | ) |  |  | 2 |  |  |  | — |  |  |  | — |
Total amount reclassified from Accumulated other comprehensive loss, net of tax(6) |  |  | 6 |  |  |  | 1 |  |  |  | — |  |  |  | — |
Total Other comprehensive income (loss) |  |  | 113 |  |  |  | (81 | ) |  |  | 2 |  |  |  | (2 | )
Balance at end of period |  | $ | (376 | ) |  | $ | (524 | ) |  | $ | (3 | ) |  | $ | (6 | )
(1) | These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note L).
(2) | These amounts were included in Provision for income taxes on the accompanying Statement of Consolidated Operations.
(3) | In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings.
(4) | This amount was included in Other income, net on the accompanying Statement of Consolidated Operations.
(5) | This amount was included in Sales on the accompanying Statement of Consolidated Operations.
(6) | A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 5.
Issued In February 2013, the FASB issued changes to the accounting for obligations resulting from joint and several liability arrangements. These changes require an entity to measure such obligations for which the total amount of the obligation is fixed at the reporting date as the sum of (i) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (ii) any additional amount the reporting entity expects to pay on behalf of its co-obligors. An entity will also be required to disclose the nature and amount of the obligation as well as other information about those obligations. Examples of obligations subject to these requirements are debt arrangements and settled litigation and judicial rulings. These changes become effective for Alcoa on January 1, 2014. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements, as Alcoa does not currently have any such arrangements. In March 2013, the FASB issued changes to a parent entity’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. A parent entity is required to release any related cumulative foreign currency translation adjustment from accumulated other comprehensive income into net income in the following circumstances: (i) a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided; (ii) a partial sale of an equity method investment that is a foreign entity; (iii) a partial sale of an equity method investment that is not a foreign entity whereby the partial sale represents a complete or substantially complete liquidation of the foreign entity that held the equity method investment; and (iv) the sale of an investment in a foreign entity. These changes become effective for Alcoa on January 1, 2014. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements.

X
- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.10-01.(b)(6)) -URI http://asc.fasb.org/extlink&oid=6958853&loc=d3e46468-122699 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22580-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 01 -Paragraph b -Subparagraph 6 -Article 10 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Accounting Change -URI http://asc.fasb.org/extlink&oid=6503790 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Retrospective Application -URI http://asc.fasb.org/extlink&oid=6523989 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22583-107794 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Indirect Effects of a Change in Accounting Principle -URI http://asc.fasb.org/extlink&oid=6515603 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Direct Effects of a Change in Accounting Principle -URI http://asc.fasb.org/extlink&oid=6510796 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Change in Accounting Principle -URI http://asc.fasb.org/extlink&oid=6507316 + Details
Name: | us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration