Alcoa 2009 Annual Report Download - page 123

P. Cash Flow Information
Cash paid for interest and income taxes are as follows:
2009 2008 2007
Interest, net of amount capitalized $396 $335 $ 275
Income taxes, net of amount refunded 168 730 1,376
The details related to acquisitions are as follows:
2009 2008 2007
Assets acquired $ 389 $352 $19
Liabilities assumed (294) (5) (3)
Noncontrolling interests acquired - 70 3
Gain recognized (92) - -
Cash paid 3 417 19
Less: cash acquired 115 - 1
Net cash (received) paid $(112) $417 $18
In 2007, Alcoa sold its Three Oaks Mine for $140, which consisted of $70 in cash and a $70 note receivable. The $70
in cash was reflected in the Proceeds from the sale of assets and businesses on the accompanying Statement of
Consolidated Cash Flows. The $70 note receivable was not reflected in the accompanying Statement of Consolidated
Cash Flows as it represents a non-cash activity. In 2009, the note receivable was settled and was included in Proceeds
from the sale of assets and businesses on the accompanying Statement of Consolidated Cash Flows.
Q. Segment and Geographic Area Information
In May 2009, management approved the movement of Alcoa’s hard alloy extrusions business from the Flat-Rolled
Products segment to the Engineered Products and Solutions segment. This move was made to capture market,
customer, and manufacturer synergies through the combination of the hard alloy extrusions business with the power
and propulsion and forgings businesses. Prior period amounts were reclassified to reflect this change.
Alcoa is primarily a producer of aluminum products. Aluminum and alumina represent more than three-fourths of
Alcoa’s revenues. Nonaluminum products include precision castings and aerospace and industrial fasteners. 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
income and 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 and other metal adjustments, 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 translation gains/losses 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 assets classified as held for sale related to
discontinued operations.
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 products are used worldwide in packaging, transportation (including aerospace, automotive, truck, trailer, rail,
and shipping), building and construction, oil and gas, defense, and industrial applications. Total export sales from the
U.S. included in continuing operations were $1,678 in 2009, $2,732 in 2008, and $3,060 in 2007.
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