Alcoa 2001 Annual Report Download - page 57

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Alumina and Chemicals. This segment consists of Alcoa’s world-
wide alumina and chemicals system, that includes the mining of
bauxite, which is then refined into alumina. Alumina is sold directly
to internal and external smelter customers worldwide or is processed
into industrial chemical products. Alcoa’s alumina operations in
Australia are a significant component of this segment. Approximately
two-thirds of the third-party sales from this segment are derived
from alumina.
Primary Metals. This segment consists of Alcoa’s worldwide
smelter system. Primary Metals receives alumina primarily from the
Alumina and Chemicals segment and produces aluminum ingot
to be used by Alcoa’s fabricating businesses, as well as sold to exter-
nal customers, aluminum traders and commodity markets. Results
fromthesaleofaluminumpowder,scrapandexcesspowerare
also included in this segment, as well as the results from aluminum
derivative contracts. The sale of ingot represents approximately 80%
of this segment’s third-party sales.
Flat-Rolled Products. This segment’s principal business is the
production and sale of aluminum plate, sheet and foil. This segment
includes rigid container sheet
(RCS) , which is used to produce
aluminum beverage cans, and sheet and plate used in the transpor-
tation and distributor markets. Approximately 60% of the third-party
sales in this segment are derived from sheet and plate, and foil used
in industrial markets, while the remaining 40% of third-party sales
consists of
RCS .
Engineered Products. This segment includes hard- and soft-alloy
extrusions, including architectural extrusions, super-alloy castings,
steel and aluminum fasteners, aluminum forgings and wheels. These
products serve the transportation, building and construction and
distributor markets.
Packaging and Consumer. This segment includes foodservice,
flexible packaging, consumer products and packaging graphics
design, as well as closures,
PET bottles and packaging machinery.
The principal products in this segment include aluminum foil; plastic
wraps and bags; metal and plastic beverage and food closures; pre-
press services and plastic shrink film and wraps. Consumer products
are marketed under brands including Reynolds Wrap, Diamond,
Baco and Cut-Rite wax paper.
Other. This group includes other Alcoa businesses that are not
included in the segments previously mentioned. This group includes
Alcoa Fujikura Ltd., which produces electrical components for the
automotive industry along with fiber-optic cable and provides
services to the telecommunications industry; residential building
products operations, Alcoa Building Products
(ABP) ; automotive
parts businesses; Thiokol, a producer of solid rocket propulsion
systems (Thiokol was sold in April 2001); and Reynolds’ metal
distribution business, RASCO (in November 2001, the net assets of
RASCO were contributed to a joint venture, in which Alcoa retains
a 50% equity interest).
The following reconciles segment information to consolidated totals.
2001 2000 1999
Sales:
Total sales $27,279 $27,703 $20,112
Elimination of intersegment sales (4,420) (4,767) (3,795)
Other revenues ——6
Consolidated sales $22,859 $22,936 $16,323
Net income:
Total after-tax operating income $ 2,043 $ 2,389 $ 1,489
Impact of intersegment profit
eliminations (20) 24 (24)
Unallocated amounts (net of tax):
Interest income 40 40 26
Interest expense (242) (278) (126)
Minority interests (208) (381) (242)
Special items (397) ——
Corporate expense (261) (227) (171)
Other (47) (83) 102
Consolidated net income $ 908 $ 1,484 $ 1,054
Assets:
Total assets $23,984 $26,569 $15,576
Elimination of intersegment
receivables (309) (530) (362)
Unallocated amounts:
Cash, cash equivalents and
short-term investments 527 371 314
Deferred tax assets 855 745 657
Corporate goodwill 1,710 1,570 558
Corporate fixed assets 513 414 278
LIFO reserve (605) (658) (645)
Operations to be divested —1,473 —
Other 1,680 1,737 690
Consolidated assets $28,355 $31,691 $17,066
Geographic information for revenues, based on country of origin,
and long-lived assets follows.
2001 2000 1999
Revenues:
U.S. $15,000 $15,487 $10,392
Australia 1,350 1,690 1,398
Spain 1,011 1,146 1,059
United Kingdom 899 379 253
Brazil 736 885 730
Germany 720 713 521
Other 3,143 2,636 1,970
$22,859 $22,936 $16,323
Long-lived assets:
U.S. $12,495 $14,276 $ 6,650
Canada 2,787 2,844 948
Australia 1,345 1,458 1,585
United Kingdom 682 378 72
Brazil 600 698 712
Germany 194 213 165
Other 1,164 1,322 1,050
$19,267 $21,189 $11,182