XML 1063 R25.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Segment and Geographic Area Information | 12 Months Ended
--- | ---
Dec. 31, 2013
Segment Reporting [Abstract] |
Segment and Geographic Area Information | Q. Segment and Geographic Area Information Alcoa is primarily a producer of aluminum products. Aluminum and alumina represent more than 80% of Alcoa’s revenues. Nonaluminum products include precision castings and aerospace and industrial fasteners. Alcoa’s products are used worldwide in transportation (including aerospace, automotive, truck, trailer, rail, and shipping), packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa’s segments are organized by product on a worldwide basis. Segment performance under Alcoa’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is the after-tax operating income (ATOI) of each segment. Certain items such as the impact of LIFO inventory accounting; interest expense; noncontrolling interests; corporate expense (general administrative and selling expenses of operating the corporate headquarters and other global administrative facilities, along with depreciation and amortization on corporate-owned assets); restructuring and other charges; discontinued operations; and other items, including intersegment profit eliminations, differences between tax rates applicable to the segments and the consolidated effective tax rate, the results of the soft alloy extrusions business in Brazil, and other nonoperating items such as foreign currency transaction gains/losses and interest income are excluded from segment ATOI. Segment assets exclude, among others, cash and cash equivalents; deferred income taxes; goodwill not allocated to businesses for segment reporting purposes; corporate fixed assets; LIFO reserves; and other items, including the assets of the soft alloy extrusions business in Brazil and assets classified as held for sale related to discontinued operations. On January 1, 2013, management revised the inventory-costing method used by certain locations within the Global Rolled Products and Engineered Products and Solutions segments, which affects the determination of the respective segment’s profitability measure, ATOI. Management made the change in order to improve internal consistency and enhance industry comparability. This revision does not impact the consolidated results of Alcoa. Segment information for all prior periods presented was revised to reflect this change. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note A). Transactions among segments are established based on negotiation among the parties. Differences between segment totals and Alcoa’s consolidated totals for line items not reconciled are in Corporate. Alcoa’s operations consist of four worldwide reportable segments as follows: Alumina. This segment represents a portion of Alcoa’s upstream operations and consists of the Company’s worldwide refinery system, including the mining of bauxite, which is then refined into alumina. Alumina is mainly sold directly to internal and external smelter customers worldwide or is sold to customers who process it into industrial chemical products. A portion of this segment’s third-party sales are completed through the use of agents, alumina traders, and distributors. Slightly more than half of Alcoa’s alumina production is sold under supply contracts to third parties worldwide, while the remainder is used internally by the Primary Metals segment. Primary Metals. This segment represents a portion of Alcoa’s upstream operations and consists of the Company’s worldwide smelter system. Primary Metals receives alumina, mostly from the Alumina segment, and produces primary aluminum used by Alcoa’s fabricating businesses, as well as sold to external customers and traders. Results from the sale of aluminum powder, scrap, and excess power are also included in this segment, as well as the results of aluminum derivative contracts and buy/resell activity. Primary aluminum produced by Alcoa and used internally is transferred to other segments at prevailing market prices. The sale of primary aluminum represents more than 90% of this segment’s third-party sales. Buy/resell activity refers to when this segment purchases metal from external or internal sources and resells such metal to external customers or the midstream and downstream segments in order to maximize smelting system efficiency and to meet customer requirements. Global Rolled Products. This segment represents Alcoa’s midstream operations, whose principal business is the production and sale of aluminum plate and sheet. A small portion of this segment’s operations relate to foil produced at one plant in Brazil. This segment includes rigid container sheet (RCS), which is sold directly to customers in the packaging and consumer market and is used to produce aluminum beverage cans. Seasonal increases in RCS sales are generally experienced in the second and third quarters of the year. Approximately one-half of the third-party sales in this segment consist of RCS. This segment also includes sheet and plate used in the aerospace, automotive, commercial transportation, building and construction, and industrial products (mainly used in the production of machinery and equipment and consumer durables) end markets, which is sold directly to customers and through distributors. While the customer base for flat-rolled products is large, a significant amount of sales of RCS, sheet, and plate is to a relatively small number of customers. Engineered Products and Solutions. This segment represents Alcoa’s downstream operations and includes titanium, aluminum, and super alloy investment castings; fasteners; aluminum wheels; integrated aluminum structural systems; architectural extrusions; and forgings and hard alloy extrusions. These products, which are used in the aerospace, automotive, building and construction, commercial transportation, power generation, and industrial products end markets, are sold directly to customers and through distributors. The operating results and assets of Alcoa’s reportable segments were as follows:
|  | Alumina |  |  | Primary Metals |  |  | Global Rolled Products |  |  | Engineered Products and Solutions |  |  | Total |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 3,326 |  |  | $ | 6,596 |  |  | $ | 7,106 |  |  | $ | 5,733 |  |  | $ | 22,761 |
Intersegment sales |  |  | 2,235 |  |  |  | 2,621 |  |  |  | 178 |  |  |  | - |  |  |  | 5,034 |
Total sales |  | $ | 5,561 |  |  | $ | 9,217 |  |  | $ | 7,284 |  |  | $ | 5,733 |  |  | $ | 27,795 |
Profit and loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity loss |  | $ | (4 | ) |  | $ | (51 | ) |  | $ | (13 | ) |  | $ | - |  |  | $ | (68 | )
Depreciation, depletion, and amortization |  |  | 426 |  |  |  | 526 |  |  |  | 226 |  |  |  | 159 |  |  |  | 1,337 |
Income taxes |  |  | 66 |  |  |  | (74 | ) |  |  | 108 |  |  |  | 348 |  |  |  | 448 |
ATOI |  |  | 259 |  |  |  | (20 | ) |  |  | 252 |  |  |  | 726 |  |  |  | 1,217 |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 3,092 |  |  | $ | 7,432 |  |  | $ | 7,378 |  |  | $ | 5,525 |  |  | $ | 23,427 |
Intersegment sales |  |  | 2,310 |  |  |  | 2,877 |  |  |  | 163 |  |  |  | - |  |  |  | 5,350 |
Total sales |  | $ | 5,402 |  |  | $ | 10,309 |  |  | $ | 7,541 |  |  | $ | 5,525 |  |  | $ | 28,777 |
Profit and loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity income (loss) |  | $ | 5 |  |  | $ | (27 | ) |  | $ | (6 | ) |  | $ | - |  |  | $ | (28 | )
Depreciation, depletion, and amortization |  |  | 455 |  |  |  | 532 |  |  |  | 229 |  |  |  | 158 |  |  |  | 1,374 |
Income taxes |  |  | (27 | ) |  |  | 106 |  |  |  | 159 |  |  |  | 297 |  |  |  | 535 |
ATOI |  |  | 90 |  |  |  | 309 |  |  |  | 346 |  |  |  | 612 |  |  |  | 1,357 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 3,462 |  |  | $ | 8,240 |  |  | $ | 7,642 |  |  | $ | 5,345 |  |  | $ | 24,689 |
Intersegment sales |  |  | 2,727 |  |  |  | 3,192 |  |  |  | 218 |  |  |  | - |  |  |  | 6,137 |
Total sales |  | $ | 6,189 |  |  | $ | 11,432 |  |  | $ | 7,860 |  |  | $ | 5,345 |  |  | $ | 30,826 |
Profit and loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity income (loss) |  | $ | 25 |  |  | $ | (7 | ) |  | $ | (3 | ) |  | $ | 1 |  |  | $ | 16 |
Depreciation, depletion, and amortization |  |  | 444 |  |  |  | 556 |  |  |  | 237 |  |  |  | 158 |  |  |  | 1,395 |
Income taxes |  |  | 179 |  |  |  | 92 |  |  |  | 98 |  |  |  | 258 |  |  |  | 627 |
ATOI |  |  | 607 |  |  |  | 481 |  |  |  | 260 |  |  |  | 537 |  |  |  | 1,885 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 322 |  |  | $ | 224 |  |  | $ | 335 |  |  | $ | 224 |  |  | $ | 1,105 |
Equity investments |  |  | 628 |  |  |  | 947 |  |  |  | 200 |  |  |  | - |  |  |  | 1,775 |
Goodwill |  |  | 9 |  |  |  | - |  |  |  | 218 |  |  |  | 2,670 |  |  |  | 2,897 |
Total assets |  |  | 8,248 |  |  |  | 10,341 |  |  |  | 4,647 |  |  |  | 6,011 |  |  |  | 29,247 |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 374 |  |  | $ | 318 |  |  | $ | 258 |  |  | $ | 200 |  |  | $ | 1,150 |
Equity investments |  |  | 658 |  |  |  | 917 |  |  |  | 188 |  |  |  | - |  |  |  | 1,763 |
Goodwill |  |  | 10 |  |  |  | 997 |  |  |  | 214 |  |  |  | 2,677 |  |  |  | 3,898 |
Total assets |  |  | 9,709 |  |  |  | 11,709 |  |  |  | 4,603 |  |  |  | 5,891 |  |  |  | 31,912 |
The following tables reconcile certain segment information to consolidated totals:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Sales: |  |  |  |  |  |  |  |  |  |  |  |
Total segment sales |  | $ | 27,795 |  |  | $ | 28,777 |  |  | $ | 30,826 |
Elimination of intersegment sales |  |  | (5,034 | ) |  |  | (5,350 | ) |  |  | (6,137 | )
Corporate* |  |  | 271 |  |  |  | 273 |  |  |  | 262 |
Consolidated sales |  | $ | 23,032 |  |  | $ | 23,700 |  |  | $ | 24,951 |
* | For all periods presented, the Corporate amount includes third-party sales of the soft alloy extrusions business located in Brazil.
|  | 2013 |  |  | 2012 |  |  | 2011 |
Net (loss) income attributable to Alcoa: |  |  |  |  |  |  |  |  |  |  |  |
Total segment ATOI |  | $ | 1,217 |  |  | $ | 1,357 |  |  | $ | 1,885 |
Unallocated amounts (net of tax): |  |  |  |  |  |  |  |  |  |  |  |
Impact of LIFO |  |  | 52 |  |  |  | 20 |  |  |  | (38 | )
Interest expense |  |  | (294 | ) |  |  | (319 | ) |  |  | (340 | )
Noncontrolling interests |  |  | (41 | ) |  |  | 29 |  |  |  | (194 | )
Corporate expense |  |  | (284 | ) |  |  | (282 | ) |  |  | (290 | )
Impairment of goodwill |  |  | (1,731 | ) |  |  | - |  |  |  | - |
Restructuring and other charges |  |  | (607 | ) |  |  | (142 | ) |  |  | (196 | )
Discontinued operations |  |  | - |  |  |  | - |  |  |  | (3 | )
Other |  |  | (597 | ) |  |  | (472 | ) |  |  | (213 | )
Consolidated net (loss) income attributable to Alcoa |  | $ | (2,285 | ) |  | $ | 191 |  |  | $ | 611 |
December 31, |  | 2013 |  |  | 2012 |
Assets: |  |  |  |  |  |  |  |
Total segment assets |  | $ | 29,247 |  |  | $ | 31,912 |
Elimination of intersegment receivables |  |  | (385 | ) |  |  | (444 | )
Unallocated amounts: |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 1,437 |  |  |  | 1,861 |
Deferred income taxes |  |  | 3,410 |  |  |  | 4,052 |
Corporate goodwill |  |  | 518 |  |  |  | 1,272 |
Corporate fixed assets, net |  |  | 879 |  |  |  | 961 |
LIFO reserve |  |  | (691 | ) |  |  | (770 | )
Other |  |  | 1,327 |  |  |  | 1,335 |
Consolidated assets |  | $ | 35,742 |  |  | $ | 40,179 |
Sales by major product grouping were as follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Sales: |  |  |  |  |  |  |  |  |  |  |  |
Alumina |  | $ | 3,151 |  |  | $ | 2,962 |  |  | $ | 3,350 |
Primary aluminum |  |  | 6,194 |  |  |  | 7,121 |  |  |  | 7,907 |
Flat-rolled aluminum |  |  | 7,106 |  |  |  | 7,378 |  |  |  | 7,642 |
Investment castings |  |  | 1,807 |  |  |  | 1,747 |  |  |  | 1,700 |
Fastening systems |  |  | 1,505 |  |  |  | 1,414 |  |  |  | 1,313 |
Architectural aluminum systems |  |  | 977 |  |  |  | 970 |  |  |  | 973 |
Aluminum wheels |  |  | 702 |  |  |  | 692 |  |  |  | 656 |
Other extruded aluminum and forged products |  |  | 1,015 |  |  |  | 955 |  |  |  | 1,010 |
Other |  |  | 575 |  |  |  | 461 |  |  |  | 400 |
|  | $ | 23,032 |  |  | $ | 23,700 |  |  | $ | 24,951 |
Geographic information for sales was as follows (based upon the country where the point of sale occurred):
|  | 2013 |  |  | 2012 |  |  | 2011 |
Sales: |  |  |  |  |  |  |  |  |  |  |  |
U.S.(1) |  | $ | 11,766 |  |  | $ | 12,361 |  |  | $ | 12,295 |
Australia |  |  | 3,240 |  |  |  | 3,222 |  |  |  | 3,587 |
Spain(2) |  |  | 2,282 |  |  |  | 1,203 |  |  |  | 1,487 |
Brazil |  |  | 1,221 |  |  |  | 1,244 |  |  |  | 1,371 |
France |  |  | 862 |  |  |  | 807 |  |  |  | 825 |
Russia |  |  | 683 |  |  |  | 713 |  |  |  | 761 |
Hungary |  |  | 555 |  |  |  | 492 |  |  |  | 665 |
Netherlands(3) |  |  | 524 |  |  |  | 949 |  |  |  | 1,025 |
United Kingdom |  |  | 475 |  |  |  | 438 |  |  |  | 412 |
Norway(2) |  |  | 283 |  |  |  | 820 |  |  |  | 927 |
China |  |  | 259 |  |  |  | 326 |  |  |  | 283 |
Germany |  |  | 230 |  |  |  | 216 |  |  |  | 229 |
Italy |  |  | 157 |  |  |  | 379 |  |  |  | 537 |
Other |  |  | 495 |  |  |  | 530 |  |  |  | 547 |
|  | $ | 23,032 |  |  | $ | 23,700 |  |  | $ | 24,951 |
(1) | Sales that occurred in the U.S. include a portion of alumina from Alcoa’s refineries in Suriname, Brazil, Australia, and Jamaica and aluminum from Alcoa’s smelters in Canada.
(2) | In 2013, Sales that occurred in Spain include aluminum from Alcoa’s smelters in Iceland and Norway.
(3) | In 2012 and 2011, Sales that occurred in the Netherlands include aluminum from Alcoa’s smelter in Iceland.
Geographic information for long-lived assets was as follows (based upon the physical location of the assets):
December 31, |  | 2013 |  |  | 2012 |
Long-lived assets: |  |  |  |  |  |  |  |
U.S. |  | $ | 4,760 |  |  | $ | 4,621 |
Brazil |  |  | 3,746 |  |  |  | 4,318 |
Australia |  |  | 3,024 |  |  |  | 3,548 |
Iceland |  |  | 1,518 |  |  |  | 1,571 |
Canada |  |  | 1,302 |  |  |  | 1,399 |
Norway |  |  | 762 |  |  |  | 898 |
Russia |  |  | 471 |  |  |  | 494 |
Spain |  |  | 446 |  |  |  | 445 |
Jamaica |  |  | 393 |  |  |  | 414 |
China |  |  | 388 |  |  |  | 395 |
Other |  |  | 829 |  |  |  | 844 |
|  | $ | 17,639 |  |  | $ | 18,947 |

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration