Alcoa 2009 Annual Report Download - page 72

refinery expansion, Juruti bauxite mine development, Estreito hydroelectric power project, and flat-rolled products
projects in Bohai (China) and Russia; $1,303 in additions to investments, mostly related to the $1,200 investment made
in Shining Prospect Pte. Ltd. to acquire common stock of Rio Tinto plc; and $417 in acquisitions for the purchase of
two aerospace fastener manufacturing businesses ($276), the buyout of outstanding noncontrolling interests in Bohai
($79) and Russia ($15), and a contingent payment made to Camargo Corrêa Group related to the 2003 acquisition of
40.9% of Alcoa Alumínio S.A. ($47); all of which was partially offset by $2,710 in proceeds from the sale of assets
and businesses, mostly due to the $2,651 in net proceeds from the sale of the businesses within the former Packaging
and Consumer segment.
The use of cash in 2007 was primarily due to $3,636 in capital expenditures (includes costs related to environmental
control in new and expanded facilities of $274), 64% of which related to growth projects, including the Iceland smelter,
Mosjøen anode facility in Norway, São Luís refinery expansion, Juruti bauxite mine development, Estreito
hydroelectric power project, and flat-rolled products projects in Bohai and Russia; and $131 in additions to
investments, mostly due to various hydroelectric power projects in Brazil, a natural gas pipeline in Australia, and
available-for-sale securities held by Alcoa’s captive insurance program; all of which was partially offset by $2,011
from sales of investments, mostly related to the $1,942 in proceeds received from the sale of the Chalco investment;
and $183 in proceeds from the sale of assets and businesses, principally due to cash received from the sales of a mine
in Texas ($70) and the Automotive Castings business ($33).
Contractual Obligations and Off-Balance Sheet Arrangements
Contractual Obligations. Alcoa is required to make future payments under various contracts, including long-term
purchase obligations, debt agreements, and lease agreements. Alcoa also has commitments to fund its pension plans,
provide payments for postretirement benefit plans, and finance capital projects. As of December 31, 2009, a summary
of Alcoa’s outstanding contractual obligations is as follows (these contractual obligations are grouped in the same
manner as they are classified in the Statement of Consolidated Cash Flows in order to provide a better understanding of
the nature of the obligations and to provide a basis for comparison to historical information):
Total 2010 2011-2012 2013-2014 Thereafter
Operating activities:
Energy-related purchase obligations $18,674 $1,239 $2,283 $2,052 $13,100
Raw material purchase obligations 2,412 905 839 278 390
Other purchase obligations 364 61 130 131 42
Operating leases 1,027 224 397 180 226
Interest related to total debt 5,039 566 984 789 2,700
Estimated minimum required pension funding 2,530 100 1,280 1,150 -
Postretirement benefit payments 2,705 285 580 560 1,280
Layoff and other restructuring payments 226 159 36 31 -
Deferred revenue arrangements 140 8 16 16 100
Uncertain tax positions 64 - - - 64
Financing activities:
Total debt 9,777 842 1,545 2,341 5,049
Dividends to shareholders - - - - -
Investing activities:
Capital projects 1,271 586 476 209 -
Payments related to acquisitions - - - - -
Totals $44,229 $4,975 $8,566 $7,737 $22,951
Obligations for Operating Activities
Energy-related purchase obligations consist primarily of electricity and natural gas contracts with expiration dates
ranging from less than 1 year to 40 years. The majority of raw material and other purchase obligations have expiration
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