Alcoa 2015 Annual Report Download - page 186
Download and view the complete annual report
Please find page 186 of the 2015 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
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
 |
 |
The following table presents quantitative information related to the significant unobservable inputs described above for
Level 3 derivative contracts:
Fair value at
December 31, 2015 Unobservable input
Range
($in full amounts)
Assets:
Embedded aluminum
derivatives
$1,060 Price of aluminum beyond
forward curve
Aluminum: $2,060 per metric
ton in 2026 to $2,337 per
metric ton in 2029 (two
contracts) and $2,534 per
metric ton in 2036 (one
contract)
Midwest premium: $0.0940
per pound in 2021 to
$0.0940 per pound in 2029
(two contracts) and 2036
(one contract)
Embedded aluminum
derivative
69 Interrelationship of future
aluminum prices, foreign
currency exchange rates, and
the U.S. consumer price
index (CPI)
Aluminum: $1,525 per metric
ton in January 2016 to
$1,550 per metric ton in
September 2016
Foreign currency: A$1 = $0.73
in 2016 (January through
September)
CPI: 1982 base year of 100 and
233 in January 2016 to 236
in September 2016
Embedded aluminum
derivative
6 Interrelationship of LME price
to overall energy price
Aluminum: $1,512 per metric
ton in 2016 to $1,686 per
metric ton in 2019
Embedded aluminum
derivative
- Interrelationship of future
aluminum and oil prices
Aluminum: $1,525 per metric
ton in 2016 to $1,652 per
metric ton in 2018
Oil: $38 per barrel in 2016 to
$53 per barrel in 2018
Liabilities:
Embedded aluminum
derivative
169 Price of aluminum beyond
forward curve
Aluminum: $2,060 per metric
ton in 2026 to $2,128 per
metric ton in 2027
Embedded credit derivative 35 Credit spread between Alcoa
and counterparty
3.41% to 4.29%
(3.85% median)
Energy contract 2 Price of electricity beyond
forward curve
Electricity: $45 per megawatt
hour in 2019 to $121 per
megawatt hour in 2036
* The fair value of the energy contract reflected as a liability in this table is lower by $2 compared to the respective
amount reflected in the Level 3 tables presented below. This is due to the fact that this contract is in a liability
position for the current portion but is in an asset position for the noncurrent portion, and is reflected as such on the
accompanying Consolidated Balance Sheet. However, this derivative is reflected as a net liability in the above table
for purposes of presenting the assumptions utilized to measure the fair value of the derivative instrument in its
entirety.
162