Alcoa 2012 Annual Report Download - page 164
Download and view the complete annual report
Please find page 164 of the 2012 Alcoa annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154 -
155 -
156 -
157 -
158 -
159 -
160 -
161 -
162 -
163 -
164 -
165 -
166 -
167 -
168 -
169 -
170 -
171 -
172 -
173 -
174 -
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
 |
 |
The following table presents quantitative information for Level 3 derivative contracts:
Fair value at
December 31, 2012*
Valuation
technique
Unobservable
input
Range
($ in full amounts)
Assets:
Aluminum contract $ 2 Discounted cash flow Interrelationship of
future aluminum and
oil prices
Aluminum: $2,037 per
metric ton in 2013 to
$2,542 per metric ton
in 2018
Oil: $90 to $111 per
barrel
Aluminum contract 537 Discounted cash flow Interrelationship of
future aluminum
prices, foreign
currency exchange
rates, and the U.S.
consumer price index
(CPI)
Aluminum: $2,046 per
metric ton in 2013 to
$2,400 per metric ton
in 2016
Foreign currency:
A$1 = $1.03 in 2013 to
$0.94 in 2016
CPI: 1982 base year of
100 and 232 in 2013 to
254 in 2016
Energy contracts 3 Discounted cash flow Price of electricity
beyond forward curve
$78 per megawatt hour
in 2013 to $170 per
megawatt hour in 2036
Liabilities:
Aluminum
contracts
600 Discounted cash flow Price of aluminum
beyond forward curve
$2,790 per metric ton
in 2023 to $3,002 per
metric ton in 2027
Embedded credit
derivative
30 Discounted cash flow Credit spread between
Alcoa and
counterparty
1.63% to 1.91%
(1.77% median)
* The fair value of aluminum contracts reflected as assets and liabilities in this table are both lower by $8 compared to
the respective amounts reflected in the Level 3 reconciliation presented above. This is due to the fact that Alcoa has
a contract that is in an asset position for the current portion but is in a liability position for the long-term portion, and
is reflected as such on the accompanying Consolidated Balance Sheet. However, this contract is reflected as a net
liability in this table for purposes of presenting the fair value technique and assumptions utilized to measure the
contract as a whole.
153