Alcoa 2010 Annual Report Download - page 108
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• Consumer Products, a leading manufacturer of branded and private label foil, wraps and bags, and includes
the Reynolds®and Baco®branded products;
• Food Packaging, makers of stock and customer products for the foodservice, supermarket, food processor,
and agricultural markets, including foil, film, and both plastic and foil food containers.
In 2008, Alcoa made a $47 contingent payment related to a 2003 acquisition (see 2008 Acquisitions). This payment
was recorded as an adjustment to goodwill and was included in Acquisitions, net of cash acquired on the accompanying
Statement of Consolidated Cash Flows. In connection with the 2005 acquisition of two fabricating facilities in Russia,
Alcoa could be required to make contingent payments of approximately $50 through 2015 based upon the achievement
of various financial and operating targets. Any such payment would be reflected as additional goodwill.
G. Inventories
December 31, 2010 2009
Finished goods $ 470 $ 441
Work-in-process 814 680
Bauxite and alumina 621 593
Purchased raw materials 401 359
Operating supplies 256 255
$2,562 $2,328
At December 31, 2010 and 2009, 36% and 35% of total inventories, respectively, were valued on a LIFO basis. If
valued on an average-cost basis, total inventories would have been $742 and $717 higher at December 31, 2010 and
2009, respectively. During the three-year period ended December 31, 2010, reductions in LIFO inventory quantities
caused partial liquidations of the lower cost LIFO inventory base. These liquidations resulted in the recognition of
income of $27 ($17 after-tax) in 2010, $175 ($114 after-tax) in 2009, and $38 ($25 after-tax) in 2008.
H. Properties, Plants, and Equipment, Net
December 31, 2010 2009
Land and land rights, including mines $ 631 $ 576
Structures 11,627 10,542
Machinery and equipment 22,996 21,960
35,254 33,078
Less: accumulated depreciation, depletion, and amortization 17,285 15,697
17,969 17,381
Construction work-in-progress 2,192 2,447
$20,161 $19,828
As of December 31, 2010 and 2009, the net carrying value of idled smelting assets was $458 and $727, representing
878 kmt and 1,234 kmt of idle capacity, respectively. Also, the net carrying value of idled refining assets was $100 and
$157 as of December 31, 2010 and 2009, representing 1,321 and 1,791 kmt of idle capacity, respectively.
I. Investments
December 31, 2010 2009
Equity investments $1,244 $ 953
Other investments 96 108
$1,340 $1,061
100