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Segment Information
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Information

I. Segment Information – Effective in the second quarter of 2015, management removed the impact of metal price lag from the results of the Global Rolled Products and Engineered Products and Solutions segments in order to enhance the visibility of the underlying operating performance of these businesses. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by the respective segment. In general, when the price of metal increases, metal price lag is favorable, and when the price of metal decreases, metal price lag is unfavorable. The impact of metal price lag is now reported as a separate line item in Alcoa’s reconciliation of total segment ATOI to consolidated net income (loss) attributable to Alcoa. As a result, this change does not impact the consolidated results of Alcoa. Segment information for all prior periods presented was updated to reflect this change.

The operating results of Alcoa’s reportable segments were as follows (differences between segment totals and consolidated totals are in Corporate):

 

     Alumina     Primary
Metals		     Global
Rolled
Products		     Engineered
Products
and
Solutions		      Total  

Second quarter ended

June 30, 2015

            

Sales:

            

Third-party sales

    $ 924      $ 1,534      $ 1,668      $ 1,733       $ 5,859   

Intersegment sales

      431        562        34        —           1,027   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total sales

 $ 1,355    $ 2,096    $ 1,702    $ 1,733    $ 6,886   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Profit and loss:

Equity loss

 $ (11 )  $ (5 )  $ (7 )  $ —      $ (23 ) 

Depreciation, depletion, and amortization

   77      109      56      64      306   

Income taxes

   87      6      25      99      217   

After-tax operating income (ATOI)

   215      67      76      210      568   

Second quarter ended

June 30, 2014

Sales:

Third-party sales

 $ 761    $ 1,659    $ 1,860    $ 1,502    $ 5,782   

Intersegment sales

   480      718      44      —        1,242   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total sales

 $ 1,241    $ 2,377    $ 1,904    $ 1,502    $ 7,024   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Profit and loss:

Equity loss

 $ (7 )  $ (17 )  $ (6 )  $ —      $ (30 ) 

Depreciation, depletion, and amortization

   100      129      58      41      328   

Income taxes

   12      30      18      101      161   

ATOI

   38      97      70      202      407   
     Alumina     Primary
Metals		     Global
Rolled
Products		     Engineered
Products
and
Solutions		      Total  

Six months ended

June 30, 2015

            

Sales:

            

Third-party sales

    $ 1,811      $ 3,106      $ 3,289      $ 3,422       $ 11,628   

Intersegment sales

      932        1,254        70        —           2,256   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total sales

    $ 2,743      $ 4,360      $ 3,359      $ 3,422       $ 13,884   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Profit and loss:

            

Equity loss

    $ (18 )    $ (8 )    $ (16 )    $ —         $ (42 ) 

Depreciation, depletion, and amortization

      157        218        112        124         611   

Income taxes

      179        63        61        189         492   

ATOI

      436        254        130        404         1,224   

Six months ended

June 30, 2014

            

Sales:

            

Third-party sales

    $ 1,606      $ 3,083      $ 3,537      $ 2,945       $ 11,171   

Intersegment sales

      990        1,452        87        —           2,529   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total sales

    $ 2,596      $ 4,535      $ 3,624      $ 2,945       $ 13,700   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Profit and loss:

            

Equity loss

    $ (12 )    $ (45 )    $ (11 )    $ —         $ (68 ) 

Depreciation, depletion, and amortization

      197        253        116        81         647   

Income taxes

      52        19        47        191         309   

ATOI

      130        82        124        389         725   

The following table reconciles total segment ATOI to consolidated net income (loss) attributable to Alcoa:

 

     Second quarter ended
June 30,		      Six months ended
June 30,		  
     2015      2014      2015      2014  

Total segment ATOI

    $ 568       $ 407       $ 1,224       $ 725   

Unallocated amounts (net of tax):

            

Impact of LIFO

      36         (8 )       43         (15 ) 

Metal price lag

      (39 )       11         (62 )       18   

Interest expense

      (80 )       (69 )       (160 )       (147 ) 

Noncontrolling interests

      (67 )       9         (127 )       28   

Corporate expense

      (66 )       (70 )       (130 )       (137 ) 

Restructuring and other charges

      (159 )       (77 )       (320 )       (398 ) 

Other

      (53 )       (65 )       (133 )       (114 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Consolidated net income (loss) attributable to Alcoa

    $ 140       $ 138       $ 335       $ (40 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Items required to reconcile total segment ATOI to consolidated net income (loss) attributable to Alcoa include: the impact of LIFO inventory accounting and metal price lag; 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; 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.