Alcoa 2003 Annual Report Download - page 58

Alumina and Chemicals. This segment consists of Alcoa’s world-
wide alumina and chemicals system that includes the mining of
bauxite, which is then refined into alumina. Alumina is sold directly
to internal and external smelter customers worldwide or is processed
into industrial chemical products. Alcoa’s alumina operations in
Australiaareasignificantcomponent of this segment. Approximately
three-quarters of the third-party sales from this segment are derived
from alumina. The sale of Alcoa’s specialty chemicals business is
expected to close in the first quarter of 2004.
Primary Metals. This segment consists of Alcoa’s worldwide
smelter system. Primary Metals receives alumina primarily from the
Alumina and Chemicals segment and produces aluminum ingot to
be used by Alcoa’s fabricating businesses, as well as sold to external
customers, aluminum traders, and commodity markets. Results
from the saleofaluminumpowder, scrap, and excesspowerare
also included in this segment, as well as the results from aluminum
derivative contracts. Aluminum ingot produced by Alcoa and used
internally is transferred to other segments at prevailing market prices.
The sale of ingot represents approximately 90% of this segment’s
third-party sales.
Flat-Rolled Products. This segment’s principal business is the
production and sale of aluminum plate, sheet, and foil. This
segment includes rigid container sheet
(RCS) ,whichis sold directly
to customers in the packaging and consumer market and is used
to produce aluminum beverage cans. This segment also includes
sheet and plate used inthetransportation and distributor markets.
Approximately 60% of thethird-partysalesinthis segment are
derived from sheet and plate, and foil used in industrial markets,
while the remaining 40% of third-party sales consists of
RCS .
Engineered Products. This segment includes hard- and soft-alloy
extrusions, including architectural extrusions, super-alloy castings,
steel and aluminum fasteners, aluminum forgings, and wheels.
These products serve the aerospace, automotive, commercial
transportation, industrial gas turbine, building and construction,
and distributor markets.
Packaging and Consumer. This segment includes consumer,
foodservice, and flexible packaging products; food and beverage
closures; plastic sheet and film for the packaging industry; and
imaging and graphic communications for the packaging industry.
The principal products in this segment include aluminum foil;
plastic wraps and bags; plastic beverage and food closures; flexible
and protective packaging products; design and prepress services;
gravure and flexographic image carrier products; thermoformed
plasticcontainers and extruded plastic sheet and film. Consumer
products are marketed under brands including Reynolds Wrap姞,
Diamond姞,Baco姞,andCut-Rite姞wax paper.
Other. This group includes other Alcoa businesses that are not
included in the segments previously mentioned. This group includes
Alcoa Fujikura Ltd., which produces electrical components for the
automotive industry, and it produces fiber-optic cable and provides
services to thetelecommunicationsindustry;the residential building
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products operations, Alcoa Home Exteriors; and automotive parts
businesses.
The following reconciles segment information to consolidated totals.
2003 2002 2001
Sales:
To t a l s ales $25,713 $24,063 $26,545
Elimination of intersegment sales (4,209) (3,712) (3,969)
Consolidated sales $21,504 $20,351 $22,576
Net income:
ATOI $ 1,713 $ 1,478 $ 2,039
Impact of intersegment profit
eliminations 9(6) (20)
Unallocatedamounts (net of tax):
Interest income 24 31 40
Interest expense (204) (227) (242)
Minority interests (231) (135) (208)
Corporate expense (287) (234) (261)
Special items 26 (304) (397)
Discontinued operations (49) (90) 4
Accounting changes (47) 34 —
Other (16) (127) (47)
Consolidated net income $ 938 $ 420 $ 908
Assets:
To t a l s e g m e nt assets $24,950 $24,424 $22,959
Elimination of intersegment
receivables (382) (285) (309)
Unallocatedamounts:
Cash, cash equivalents, and
short-term investments 606 413 527
Deferred tax assets 1,610 1,482 854
Corporate goodwill 1,635 1,637 1,710
Corporate fixedassets 810 593 513
LIFO reserve (558) (514) (605)
Assets heldforsale 549 618 1,025
Other 2,491 1,442 1,681
Consolidated assets $31,711 $29,810 $28,355
Geographic information for revenues, based on country of origin,
and long-lived assets follows.
2003 2002 2001
Revenues:
U.S. $13,185 $12,942 $14,746
Australia 1,615 1,250 1,350
Spain 1,119 999 1,011
United Kingdom 745 763 899
Brazil 616 676 707
Germany 785 656 720
Other 3,439 3,065 3,143
$21,504 $20,351 $22,576
Long-lived assets:
U.S. $12,434 $12,646 $12,123
Canada 2,628 2,708 2,789
Australia 2,050 1,543 1,345
United Kingdom 849 752 682
Brazil 708 372 571
Germany 265 225 174
Other 2,061 1,899 1,388
$20,995 $20,145 $19,072