Alcoa 2012 Annual Report Download - page 81

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. 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 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.
Contractual Obligations and Off-Balance Sheet Arrangements
Contractual Obligations. Alcoa is required to make future payments under various contracts, including long-term
purchase obligations, debt agreements, and lease agreements. Alcoa also has commitments to fund its pension plans,
provide payments for other postretirement benefit plans, and finance capital projects. As of December 31, 2012, a
summary of Alcoa’s outstanding contractual obligations is as follows (these contractual obligations are grouped in the
same manner as they are classified in the Statement of Consolidated Cash Flows in order to provide a better
understanding of the nature of the obligations and to provide a basis for comparison to historical information):
Total 2013 2014-2015 2016-2017 Thereafter
Operating activities:
Energy-related purchase obligations $29,352 $1,770 $3,110 $3,834 $20,638
Raw material purchase obligations 5,773 1,756 1,147 766 2,104
Other purchase obligations 1,283 152 316 152 663
Operating leases 1,256 198 282 179 597
Interest related to total debt 4,699 501 907 860 2,431
Estimated minimum required pension funding 2,480 460 1,110 910 -
Other postretirement benefit payments 2,590 285 560 545 1,200
Layoff and other restructuring payments 111 56 41 14 -
Deferred revenue arrangements 156 8 31 36 81
Uncertain tax positions 81 - - - 81
Financing activities:
Total debt 8,811 518 695 813 6,785
Dividends to shareholders - - - - -
Investing activities:
Capital projects 1,007 636 304 36 31
Equity contributions 439 350 89 - -
Payments related to acquisitions - - - - -
Totals $58,038 $6,690 $8,592 $8,145 $34,611
Obligations for Operating Activities
Energy-related purchase obligations consist primarily of electricity and natural gas contracts with expiration dates
ranging from 1 year to 35 years. Raw material obligations consist mostly of bauxite (relates to Alcoa’s bauxite mine
interests in Guinea and Brazil), caustic soda, alumina, aluminum fluoride, calcined petroleum coke, cathode blocks,
and various metals with expiration dates ranging from less than 1 year to 15 years. Other purchase obligations consist
principally of freight for bauxite and alumina with expiration dates ranging from 2 to 19 years. Many of these purchase
obligations contain variable pricing components, and, as a result, actual cash payments may differ from the estimates
provided in the preceding table. Operating leases represent multi-year obligations for certain computer equipment,
plant equipment, vehicles, and buildings and alumina refinery process control technology.
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