Alcoa 2013 Annual Report Download - page 85

a reduction of $130 in minimum required pension funding. In 2013, this relief resulted in a reduction of $250 in
minimum required pension funding.
On October 9, 2012, Alcoa World Alumina LLC, a majority-owned subsidiary of Alcoa, paid $42.5 to the plaintiff of
the civil portion of a legal matter pursuant to a settlement agreement. The remaining $42.5 was paid on October 9,
2013.
Financing Activities
Cash used for financing activities was $679 in 2013 compared with cash used for financing activities of $798 in 2012
and cash provided from financing activities of $62 in 2011.
The use of cash in 2013 was primarily due to $2,317 in payments on debt, mainly related to $1,850 for the repayment
of borrowings under certain revolving credit facilities (see below), a $422 early repayment of 6.00% Notes due July
2013, and $27 for previous borrowings on the loans supporting the Estreito hydroelectric power project in Brazil; $132
in dividends paid to shareholders; and net cash paid to noncontrolling interests of $97, most of which relates to
Alumina Limited’s share of AWAC. These items were partially offset by $1,852 in additions to debt, virtually all of
which was the result of borrowings under certain revolving credit facilities (see below).
The use of cash in 2012 was principally the result of $1,489 in payments on debt, mainly related to $600 for the
repayment of borrowings under certain revolving credit facilities (see below), $322 for the repayment of 6% Notes due
2012 as scheduled, $280 for the repayment of short-term loans to support the export operations of a subsidiary in
Brazil, and $272 for previous borrowings on the loans supporting the São Luís refinery expansion, Juruti bauxite mine
development, and Estreito hydroelectric power project in Brazil; a change of $224 in commercial paper; and $131 in
dividends paid to shareholders. These items were partially offset by $972 in additions to debt, due to $600 in
borrowings under certain revolving credit facilities (see below), $280 in short-term loans to support the export
operations of a subsidiary in Brazil, and $92 in borrowings under loans that support the Estreito hydroelectric power
project in Brazil; and net cash received from noncontrolling interests of $76, all of which relates to Alumina Limited’s
share of AWAC.
The source of cash in 2011 was mostly driven by $1,256 in additions to long-term debt, of which $1,248 was for the
issuance of 5.40% Notes due 2021, and a change of $224 in commercial paper. These items were mostly offset by
$1,194 in payments on long-term debt, principally related to $881 for the early retirement of all of the 5.375% Notes
due 2013 and a portion of the 6.00% Notes due 2013, $217 for previous borrowings on the loans supporting the São
Luís refinery expansion, Juruti bauxite mine development, and Estreito hydroelectric power project in Brazil, and
$45 for a loan associated with the Samara, Russia facility; net cash distributed to noncontrolling interests of $88, all of
which relates to Alumina Limited’s share of AWAC; and $131 in dividends paid to shareholders.
As a result of an agreement between Alcoa and Alumina Limited in September 2012, Alcoa of Australia (part of the
AWAC group of companies) made minimum dividend payments to Alumina Limited of $100 in 2013.
Alcoa has outstanding $575 of 5.25% convertible notes due on March 15, 2014, which are included in Long-term debt
due within one year on the Company’s Consolidated Balance Sheet at December 31, 2013. The notes are payable in
cash at maturity unless holders exercise their option by the close of business on March 13, 2014 to convert the notes
into shares of Alcoa common stock. The initial conversion rate provided under the terms of the Notes is
155.4908 shares of common stock per $1,000 (whole dollars) principal amount of notes, equivalent to a conversion
price of approximately $6.43 per share of common stock.
Alcoa maintains a Five-Year Revolving Credit Agreement, dated July 25, 2011, (the “Credit Agreement”) with a
syndicate of lenders and issuers named therein. The Credit Agreement provides a $3,750 senior unsecured revolving
credit facility (the “Credit Facility”), the proceeds of which are to be used to provide working capital or for other
general corporate purposes of Alcoa. Subject to the terms and conditions of the Credit Agreement, Alcoa may from
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