Alcoa 2013 Annual Report Download - page 90

to be $625 for 2014, $625 for 2015, $550 for 2016, $440 for 2017, and $330 for 2018. These expected pension
contributions reflect the impacts of the Pension Protection Act of 2006, the Worker, Retiree, and Employer Recovery
Act of 2008, and the Moving Ahead for Progress in the 21st Century Act. The expected decline in pension contributions
assumes that all actuarial assumptions are realized and remain the same in the future. Other postretirement benefit
payments are expected to approximate $255 to $260 annually for years 2014 through 2018 and $240 annually for years
2019 through 2023. Such payments will be slightly offset by subsidy receipts related to Medicare Part D, which are
estimated to be approximately $25 to $30 annually for years 2014 through 2023. Alcoa has determined that it is not
practicable to present pension funding and other postretirement benefit payments beyond 2018 and 2023, respectively.
Layoff and other restructuring payments expected to be paid within one year primarily relate to severance costs.
Amounts scheduled to be paid beyond one year are related to lease termination costs, ongoing site remediation work,
and special termination benefit payments.
Deferred revenue arrangements require Alcoa to deliver alumina and sheet and plate to certain customers over the
specified contract period (through 2027 for an alumina contract and through 2020 for a sheet and plate contract). While
these obligations are not expected to result in cash payments, they represent contractual obligations for which the
Company would be obligated if the specified product deliveries could not be made.
Uncertain tax positions taken or expected to be taken on an income tax return may result in additional payments to tax
authorities. The amount in the preceding table includes interest and penalties accrued related to such positions as of
December 31, 2013. The total amount of uncertain tax positions is included in the “Thereafter” column as the
Company is not able to reasonably estimate the timing of potential future payments. If a tax authority agrees with the
tax position taken or expected to be taken or the applicable statute of limitations expires, then additional payments will
not be necessary.
Obligations for Financing Activities
Total debt amounts in the preceding table represent the principal amounts of all outstanding debt, including short-term
borrowings and long-term debt. Maturities for long-term debt extend to 2042.
Alcoa has historically paid quarterly dividends on its preferred and common stock. Including dividends on preferred
stock, Alcoa paid $132 in dividends to shareholders during 2013. Because all dividends are subject to approval by
Alcoa’s Board of Directors, amounts are not included in the preceding table unless such authorization has occurred. As
of December 31, 2013, there were 1,071,011,162 and 546,024 shares of outstanding common stock and preferred stock,
respectively. The annual preferred stock dividend is at the rate of $3.75 per share and the annual common stock
dividend is $0.12 per share.
Obligations for Investing Activities
Capital projects in the preceding table only include amounts approved by management as of December 31, 2013.
Funding levels may vary in future years based on anticipated construction schedules of the projects. It is expected that
significant expansion projects will be funded through various sources, including cash provided from operations. Total
capital expenditures are anticipated to be approximately $1,250 in 2014.
Equity contributions represent Alcoa’s committed investment related to a joint venture in Saudi Arabia. Alcoa is a
participant in a joint venture to develop a new aluminum complex in Saudi Arabia, comprised of a bauxite mine,
alumina refinery, aluminum smelter, and rolling mill, which will require the Company to contribute approximately
$1,100. As of December 31, 2013, Alcoa has made equity contributions of $832. The timing of the amounts included in
the preceding table may vary based on changes in anticipated construction schedules of the project.
Payments related to acquisitions are based on provisions in certain acquisition agreements that state additional funds
are due to the seller from Alcoa if the businesses acquired achieve stated financial and operational thresholds. Amounts
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