Alcoa 2012 Annual Report Download - page 135

Surety Bonds. Alcoa has outstanding surety bonds primarily related to tax matters, contract performance, workers
compensation, environmental-related matters, and customs duties. The total amount committed under these bonds,
which automatically renew or expire at various dates, mostly in 2013 and 2014, was $193 at December 31, 2012.
O. Other (Income) Expenses, Net
2012 2011 2010
Equity loss (income) $ 28 $(15) $(14)
Interest income (31) (20) (19)
Foreign currency (gains) losses, net (5) 16 13
Net gain from asset sales (321) (41) (9)
Net (gain) loss on mark-to-market derivative contracts (X) (13) (52) 37
Other, net 1 25 (3)
$(341) $(87) $ 5
In 2012, Net gain from asset sales included a $320 gain related to the sale of the Tapoco Hydroelectric Project (see
Note F). In 2011, Equity income included higher earnings from an investment in a natural gas pipeline in Australia due
to the recognition of a discrete income tax benefit by the consortium (Alcoa World Alumina and Chemicals’ share of
the benefit was $24). Also in 2011, Net gain from asset sales included a $43 gain related to the sale of land in
Australia.
P. Cash Flow Information
Cash paid for interest and income taxes was as follows:
2012 2011 2010
Interest, net of amount capitalized $454 $491 $452
Income taxes, net of amount refunded 223 382 (67)
The details related to cash paid for acquisitions were as follows:
2012 2011 2010
Assets acquired $- $253 $ 87
Liabilities assumed - (12) (15)
Noncontrolling interests acquired - - 4
Redemption of convertible securities of subsidiary - - 40
Reduction in Alcoa shareholders’ equity - - 22
Cash paid - 241 138
Less: cash acquired - 1-
Net cash paid $- $240 $138
Noncash Financing and Investing Activities. In August 2012, Alcoa received a loan of $250 for the purpose of
financing all or part of the cost of acquiring, constructing, reconstructing, and renovating certain facilities at Alcoa’s
rolling mill plant in Davenport, IA (see Note K). Because this loan can only be used for this purpose, the net proceeds of
$248 were classified as restricted cash. Since restricted cash is not part of cash and cash equivalents, this transaction was
not reflected in the accompanying Statement of Consolidated Cash Flows as it represents a noncash activity. As funds are
expended for the project, the release of the cash will be reflected as both an inflow on the Net change in restricted cash
line and an outflow on the Capital expenditures line in the Investing Activities section of the Statement of Consolidated
Cash Flows. At December 31, 2012, Alcoa had $171 of restricted cash remaining related to this transaction.
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