Alcoa 1999 Annual Report Download - page 49

G. Long-Term Debt
December 31 1999 1998
Commercial paper, variable rate,
(5.8% and 5.4% average rates) $ 980 $745
5.75%Notespayable,due2001 250 250
6.125% Bonds, due 2005 200 200
6.50% Bonds, due 2018 250 250
6.75% Bonds, due 2028 300 300
Bank loans, 7.5 billion yen, due 1999,
(4.4%fixedrate) —78
Tax-exempt revenue bonds ranging from
3.3% to 5.9%, due 2000–2033 166 153
Alcoa Fujikura Ltd.
Variable-rate term loan, due 1999–2002
(5.5% average rate) 210 230
Alcoa Aluminio
7.5% Notes, due 2008 194 388
Variable-rate notes, due 1999–2001
(7.6% and 6.6% average rates) 840
Alcoa of Australia
Euro-commercial paper, variable rate,
(5.4% average rate) 20 250
Other 146 174
2,724 3,058
Less: amount due within one year 67 181
$2,657 $2,877
The amount of long-term debt maturing in each of the next five years
is $67 in 2000, $366 in 2001, $209 in 2002, $1,010 in 2003 and $27
in 2004.
In 1998, Alcoa issued $300 of thirty-year bonds due in 2028, $250
of term debt due in 2018, $200 of term debt due in 2005 and $1,100
of commercial paper. The proceeds from these borrowings were used
to fund acquisitions and for general corporate purposes.
In 1998, Alcoa entered into a new $2 billion revolving-credit
facility, which expires in equal amounts in August 2000 and
August 2003. Under this agreement, certain levels of consolidated
net worth must be maintained while commercial paper balances
are outstanding.
In 1997, Alcoa Fujikura issued a $250 term loan and entered into
a five-year, $250 revolving-credit agreement. The proceeds of the
term loan were used to repay existing debt. These agreements require
Alcoa Fujikura to maintain certain financial ratios.
In 1996, Alcoa Aluminio issued $400 of export notes, of which
$185 were repurchased by Alcoa in 1999. The export note agreement
requires Aluminio to maintain certain financial ratios.
A portion of the commercial paper issued by Alcoa and all
of the Euro-commercial paper issued by Alcoa of Australia (AofA)
are classified as long-term debt because they are backed by the
revolving-credit facility noted above.
H. Other Assets
December 31 1999 1998
Investments, principally equity investments $ 630 $ 586
Intangibles, net of accumulated amortization
of $177 in 1999 and $139 in 1998 117 127
Noncurrent receivables 43 67
Deferred income taxes 424 505
Deferred charges and other 591 605
$1,805 $1,890
I. Other Noncurrent Liabilities and Deferred Credits
December 31 1999 1998
Deferred hedging gains —$55
Deferred alumina sales revenue $ 220 228
Environmental remediation 111 124
Deferred credits 283 336
Other noncurrent liabilities 859 845
$1,473 $1,588
The deferred hedging gains are associated with metal contracts
and will be reflected in future earnings concurrent with the hedged
revenues or costs.
J. Minority Interests
The following table summarizes the minority shareholders’ interests
in the equity of consolidated subsidiaries.
December 31 1999 1998
Alcoa of Australia $ 439 $376
Alcoa Aluminio 253 366
Alcoa World Alumina 290 290
Alcoa Fujikura 260 233
Other majority-owned companies 216 211
$1,458 $1,476
K. Cash Flow Information
Cash payments for interest and income taxes follow.
1999 1998 1997
Interest $225 $199 $146
Income taxes 394 371 343
The details of cash payments related to acquisitions follow.
1999 1998 1997
Fair value of assets $282 $ 5,511 —
Liabilities (159) (2,554) —
Stock issued —(1,321) —
Cash paid 123 1,636 —
Less: cash acquired 1173 —
Net cash paid for acquisitions $122 $ 1,463 —