Alcoa 2010 Annual Report Download - page 125

P. Cash Flow Information
Cash paid for interest and income taxes were as follows:
2010 2009 2008
Interest, net of amount capitalized $452 $396 $335
Income taxes, net of amount refunded (67) 168 730
The details related to cash paid for acquisitions were as follows:
2010 2009 2008
Assets acquired $ 87 $ 389 $352
Liabilities assumed (15) (294) (5)
Noncontrolling interests acquired 4 - 70
Redemption of convertible securities of subsidiary 40 - -
Reduction in Alcoa shareholders’equity 22 - -
Gain recognized - (92) -
Cash paid 138 3 417
Less: cash acquired - 115 -
Net cash paid (received) $138 $(112) $417
Q. Segment and Geographic Area Information
Alcoa is primarily a producer of aluminum products. Aluminum and alumina represent more than 80% 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 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 transaction gains/losses and interest income 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 other items, including the assets of the soft
alloy extrusions business in Brazil 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 transportation (including aerospace, automotive, truck, trailer, rail, and
shipping), packaging, building and construction, oil and gas, defense, and industrial applications. Total export sales
from the U.S. included in continuing operations were $1,802 in 2010, $1,678 in 2009, and $2,732 in 2008.
Alcoa’s operations consist of four worldwide reportable segments as follows (there were five such segments previous
to 2009):
Alumina. This segment (known as upstream operations) consists of Alcoa’s worldwide alumina system, including the
mining of bauxite, which is then refined into alumina. Alumina is mainly sold directly to internal and external smelter
customers worldwide or is sold to customers who process it into industrial chemical products. A portion of this
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