Alcoa 2012 Annual Report Download - page 115

Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance
Sheet, were as follows:
December 31, 2012
Gross
carrying
amount
Accumulated
amortization
Computer software $ 907 $(664)
Patents and licenses 133 (88)
Other intangibles 101 (28)
Total amortizable intangible assets 1,141 (780)
Indefinite-lived trade names and trademarks 46 -
Total other intangible assets $1,187 $(780)
December 31, 2011
Gross
carrying
amount
Accumulated
amortization
Computer software $ 902 $(595)
Patents and licenses 133 (83)
Other intangibles* 101 (23)
Total amortizable intangible assets 1,136 (701)
Indefinite-lived trade names and trademarks* 46 -
Total other intangible assets $1,182 $(701)
* In 2011, customer relationships were identified as an intangible asset ($31) related to the acquisition of an aerospace
fastener business (see Note F) and were preliminarily classified as indefinite-lived in the table above. Upon the
completion of the final valuation in 2012, it was determined that the customer relationships should have a finite life.
As a result, the 2011 gross carrying amounts for indefinite-lived intangible assets and other intangible assets were
revised to conform to the 2012 presentation.
Computer software consists primarily of software costs associated with an enterprise business solution (EBS) within
Alcoa to drive common systems among all businesses.
Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2012, 2011,
and 2010 was $82, $86, and $86, respectively, and is expected to be in the range of approximately $80 to $90 annually
from 2013 to 2017.
F. Acquisitions and Divestitures
Pro forma results of the Company, assuming all acquisitions described below were made at the beginning of the earliest
prior period presented, would not have been materially different from the results reported.
2012 Divestitures. In November 2012, Alcoa completed the sale of its 351-megawatt Tapoco Hydroelectric Project
(“Tapoco”) to Brookfield Renewable Energy Partners for $597 in cash. Alcoa recognized a gain of $320 ($173 after-
tax) in Other income, net on the accompanying Statement of Consolidated Operations, of which a gain of $426 ($275
after-tax) was reflected in the Primary Metals segment and a loss of $106 ($102 after-tax) was reflected in Corporate.
The amount in Corporate represents the write-off of goodwill and capitalized interest related to Tapoco that were not
included in the assets of the Primary Metals segment. This transaction is subject to certain post-closing adjustments as
defined in the purchase agreement. Tapoco is a four-station hydroelectric project located on the Little Tennessee and
Cheoah Rivers in eastern Tennessee and western North Carolina. The transaction included four generating stations and
dams, 86 miles of transmission lines, and approximately 14,500 acres of land associated with and surrounding Tapoco.
The power generated by Tapoco was primarily consumed by Alcoa’s smelter in Tennessee, which was temporarily
idled in 2009 and permanently shut down in 2011. Since 2009, the power generated from Tapoco was sold into the
104