Alcoa 2013 Annual Report Download - page 88

contributions of $171 related to the aluminum complex joint venture in Saudi Arabia and the purchase of $54 in
equities and fixed income securities held by Alcoa’s captive insurance company. These items were slightly offset by a
net change in restricted cash of $170, mostly related to the release of funds to be used for capital expenditures of the
automotive expansion at the Davenport, IA fabrication plant (see Noncash Financing and Investing Activities below).
The use of cash in 2012 was mainly due to $1,261 in capital expenditures (includes costs related to environmental
control in new and expanded facilities of $153), 33% of which related to growth projects, including the automotive
expansion at the Davenport, IA fabrication plant and the Estreito hydroelectric power project; and $300 in additions to
investments, principally for the equity contributions of $253 related to the aluminum complex joint venture in Saudi
Arabia. These items were somewhat offset by $615 in proceeds from the sale of assets, mostly the result of $597
received for the sale of U.S. hydroelectric power assets (see Primary Metals in Segment Information above), and a net
change in restricted cash of $87, principally related to the release of funds to be used for capital expenditures of the
automotive expansion at the Davenport, IA fabrication plant (see Noncash Financing and Investing Activities below).
The use of cash in 2011 was principally due to $1,287 in capital expenditures (includes costs related to environmental
control in new and expanded facilities of $148), 28% of which related to growth projects, including the Estreito
hydroelectric power project and Juruti bauxite mine development; $374 in additions to investments, mostly for the
equity contributions of $249 related to the aluminum complex joint venture in Saudi Arabia and purchase of $41 in
available-for-sale securities held by Alcoa’s captive insurance company; and $239 (net of cash acquired) for the
acquisition of an aerospace fastener business. These items were slightly offset by $54 in sales of investments, primarily
related to available-for-sale securities held by Alcoa’s captive insurance company, and $38 in proceeds from the sale of
assets, mainly attributable to the sale of land in Australia.
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, 2013 and 2012, Alcoa had
$13 and $171, respectively, of restricted cash remaining related to this transaction.
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