Alcoa 2004 Annual Report Download - page 58

The following reconciles segment information to consolidated
totals.
2004 2003 2002
Sales:
Total sales $29,335 $25,301 $23,646
Elimination of intersegment
sales (5,857) (4,209) (3,712)
Consolidated sales $23,478 $21,092 $19,934
Net income:
ATOI $ 2,169 $ 1,740 $ 1,549
Intersegment profit/(loss)
eliminations 52 9(6)
Unallocated amounts (net of tax):
Interest income 26 24 31
Interest expense (176) (204) (227)
Minority interests (245) (238) (172)
Corporate expense (283) (287) (234)
Restructuring and other
charges 23 26 (296)
Discontinued operations (92) (70) (132)
Accounting changes —(47) 34
Other (164) (15) (127)
Consolidated net income $ 1,310 $ 938 $ 420
Assets:
Total segment assets $26,720 $24,707 $24,148
Elimination of intersegment
receivables (565) (382) (285)
Unallocated amounts:
Cash, cash equivalents, and
short-term investments 463 606 413
Deferred tax assets 1,884 1,610 1,482
Corporate goodwill 1,703 1,682 1,637
Corporate fixed assets 595 810 593
LIFO reserve (700) (558) (514)
Assets held for sale 210 792 894
Other 2,299 2,444 1,442
Consolidated assets $32,609 $31,711 $29,810
Geographic information for revenues, based on country of
origin, and long-lived assets follows.
2004 2003 2002
Revenues:
U.S. $14,484 $12,843 $12,572
Australia 1,971 1,615 1,250
Spain 1,307 1,119 999
United Kingdom 830 714 735
Brazil 603 617 677
Germany 770 786 656
Other 3,513 3,398 3,045
$23,478 $21,092 $19,934
Long-lived assets: *
U.S. $12,009 $12,395 $12,603
Canada 2,566 2,634 2,711
Australia 2,262 2,050 1,544
United Kingdom 869 828 732
Brazil 797 708 372
Germany 278 265 225
Other 2,358 2,061 1,896
$21,139 $20,941 $20,083
*Long-lived assets include intangible assets.
R. Preferred and Common Stock
Preferred Stock. Alcoa has two classes of preferred stock.
Serial preferred stock has 546,024 shares authorized and
outstanding, with a par value of $100 per share and an annual
$3.75 cumulative dividend preference per share. Class B serial
preferred stock has 10 million shares authorized (none issued)
andaparvalueof$1pershare.
Common Stock. There are 1.8 billion shares authorized at a
par value of $1 per share. As of December 31, 2004, 136.6 million
shares of common stock were reserved for issuance under the
long-term stock incentive plans.
Stock options under the company’s stock incentive plans have
been granted, at not less than market prices on the dates of
grant. Stock option features based on date of original grant are
as follows:
Date of
original grant Vesting Term Reload feature
2002 and prior One year 10 years One reload over
option term
2003 3 years
(1/3 each year)
10 years One reload in 2004 for
1/3 vesting in 2004
2004 and
forward
3years
(1/3 each year)
6 years None
The transactions for shares under options were: (shares
in millions)
2004 2003 2002
Outstanding, beginning of year:
Number of options 87.8 81.6 73.5
Weighted average exercise price $32.50 $33.19 $32.02
Granted:
Number of options 8.8 16.8 17.3
Weighted average exercise price $35.63 $24.93 $36.10
Exercised:
Number of options (5.6) (8.0) (7.1)
Weighted average exercise price $23.34 $23.29 $26.77
Expired or forfeited:
Number of options (1.4) (2.6) (2.1)
Weighted average exercise price $37.87 $32.58 $37.50
Outstanding, end of year:
Number of options 89.6 87.8 81.6
Weighted average exercise price $33.34 $32.50 $33.19
Exercisable, end of year:
Number of options 73.5 71.6 68.8
Weighted average exercise price $34.39 $34.22 $32.68
Shares reserved for future options 35.1 13.1 25.6
The following tables summarize certain stock option
information at December 31, 2004: (shares in millions)
Options Outstanding
Range of
exercise price Number
Weighted average
remaining life
Weighted average
exercise price
$ 0.125 0.1 employment career $0.125
$ 4.38–$12.15 0.7 1.20 10.97
$12.16–$19.93 1.9 2.43 16.56
$19.94–$27.71 16.9 5.98 22.55
$27.72–$35.49 17.2 4.52 31.71
$35.50–$45.59 52.8 4.79 38.28
Total 89.6 4.88 33.34
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