Alcoa 2008 Annual Report Download

Download and view the complete annual report

Please find the complete 2008 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.

Page out of 173

  • 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

Extraordinary Times,
Extraordinary Measures
Taking
Decisive
Action
Through the
Downturn
2008 Annual Report
and Form 10-K

Table of contents

  • Page 1
    Extraordinary Times, Extraordinary Measures Taking Decisive Action Through the Downturn 2008 Annual Report and Form 10-K

  • Page 2
    ...Alcoa's businesses to customers. •฀฀ In฀addition฀to฀aluminum฀products฀and฀components฀including฀ ï¬,at-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa®฀wheels,฀fastening฀systems,฀precision฀and฀ investment castings, and building systems...

  • Page 3
    ...: For 120 years, Alcoa has led our industry through good times and bad. In 2008, we experienced both - the aluminum market soaring to an all-time high in July, followed by the fastest drop in price and customer demand in history. Throughout 2008, Alcoa's actions in addressing that dramatic economic...

  • Page 4
    ... Alcoa's strategic fundamentals. Addressing our largest input cost, we successfully completed the actions to ensure that 80% of our smelting power will be either self-generated or covered by long-term power contracts at least through 2028. In Iceland, we completed the industry's most environmentally...

  • Page 5
    ... as part of our Month of Service programs. As we went to press with this annual report we learned that Alcoa was ranked first among all global metals companies in the famous Fortune Most Admired Companies ranking The Zhengzhou Yutong Bus structures. Our Reynolux® aluminum helped to build the...

  • Page 6
    ... for฀Elkem฀smelters •฀฀ Exit฀four฀mid฀&฀฀ downstream฀฀ businesses Electrical฀&฀฀ Electronic฀Solutions ฀ -฀Global฀Foil ฀ -฀Cast฀Auto฀Wheels Transportation฀฀ Products฀Europe Production Curtailments •฀฀ Initiate฀smelting฀ curtailments...

  • Page 7
    ...: >60% Environment • Total energy consumption to increase by 54% until 2025: >60% from developing countries • Person transport rates +40% by 2030 Aluminum Demand (million mt) Americas Europe/฀ ME/Africa Asia 2008 2018 70 6% CAGR Lightweight Relative฀ Price Recyclable High Strength Durable...

  • Page 8
    ... of defense contractors building the next generation of military aircraft and ships. When the call went out to improve the armor on vehicles in Iraq, Alcoa answered. Aluminum is part of the answer to a challenged automotive industry. With an increasing focus on improved fuel economy and emissions...

  • Page 9
    ..., New York, New York 10022-4608 (Address of principal executive offices) (Zip code) Registrant's telephone numbers: Investor Relations 212) 836-2674 Office of the Secretary-----------(212) 836-2732 Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock, par...

  • Page 10
    ... 12. Item 13. Item 14. Part IV Item 15. Exhibits, Financial Statement Schedules ...142 152 Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and...

  • Page 11
    ... worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa is a global company operating in 35 countries. Based upon the country where the point of sale occurred, North America and Europe generated...

  • Page 12
    ... charts and related discussion of the company's Bauxite Interests, Alumina Refining and Primary Aluminum Facilities and Capacities, and Flat-Rolled Products, Engineered Products and Solutions and Corporate Facilities provide additional description of Alcoa's businesses. The Alumina segment primarily...

  • Page 13
    ... merged with Alcoa World Alumina Brasil Ltda. in December 2008) (AWA Brasil) holds a 4.375% interest and Alcoa World Alumina LLC (AWA LLC) holds a 5% interest in MRN. AWA Brasil and AWA LLC are both part of the AWAC group of companies and are owned 60% by Alcoa and 40% by Alumina Limited. MRN is...

  • Page 14
    ... column reflect Alcoa's share of production from these facilities. For facilities owned by AWAC entities, Alcoa takes 100% of the production. This entity is part of the AWAC group of companies and is owned 60% by Alcoa and 40% by Alumina Limited. The named company or an affiliate holds this interest...

  • Page 15
    ... mtpy of production, increasing the total capacity to 1.421 million mtpy. As a result of the Early Works Program, AWAC's ownership in Jamalco increased to approximately 55%, with the Government of Jamaica owning approximately 45%. In June 2008 AWAC and Vietnam National Coal-Minerals Industries Group...

  • Page 16
    ... and Capacity The company's primary aluminum smelters and their respective capacities are shown in the following table: Alcoa Worldwide Smelting Capacity Alcoa Nameplate Consolidated Capacity1 Capacity2 (000 MTPY) (000 MTPY) 190 1903 Country Australia Facility Point Henry Portland Brazil Poços...

  • Page 17
    ... east Iceland. Full production was achieved in April 2008. The Warrick facility currently has one idled potline of approximately 40,000 mtpy of annualized production. At the end of 2005, all production was temporarily curtailed at the Eastalco smelter located in Frederick, Maryland. The Badin, North...

  • Page 18
    ...in the first quarter of 2009. In January 2008, Alcoa and the Brunei Economic Development Board signed an MOU to enable more detailed studies into the feasibility of establishing a modern, gas-powered aluminum smelter in Brunei Darussalam. The MOU extends a memorandum signed originally in 2003. Phase...

  • Page 19
    ...and sale of aluminum plate, sheet, foil and hard alloy extrusions. These products serve the packaging and consumer, transportation, building and construction, distribution, aerospace and automotive markets. Flat-Rolled Products Principal Facilities COUNTRY Australia Brazil China FACILITY Point Henry...

  • Page 20
    ... wheels, integrated aluminum structural systems and architectural extrusions. These products serve the aerospace, automotive, building and construction, commercial transportation and power generation markets. Engineered Products and Solutions Principal Facilities COUNTRY Australia Brazil Canada...

  • Page 21
    ... Components 1 In January 2009, the company announced its intention to sell its Electrical and Electronic Solutions and Transportation Products Europe businesses. The company intends to exit the auto cast wheel business and as a result, expects to consolidate this facility by June 2009. 2 13

  • Page 22
    ... company completed the sale of its packaging and consumer business in February 2008. Therefore raw materials for the Packaging & Consumer segment are not included in the list below. Alumina Bauxite Caustic soda Electricity Fuel oil Natural gas Flat-Rolled Products Alloying materials Aluminum scrap...

  • Page 23
    .... Electric power accounts for approximately 26% of the company's primary aluminum costs. Alcoa generates approximately 22% of the power used at its smelters worldwide and generally purchases the remainder under long-term arrangements. Power generated by natural gas, or in the alternative, by fuel...

  • Page 24
    ... term contracts of varying duration. In July 2005, Alcoa announced its plans to invest approximately $525 million at the Warrick power plant to improve environmental performance and operational efficiency, as well as to lower costs. This project was completed in 2008. Power for the Rockdale smelter...

  • Page 25
    ...rules. This appeal, which may be withdrawn by Alcoa at any time, is expected to be resolved in 2009. The company's smelters at San Ciprián, La Coruña and Avilés, Spain purchase electricity from the power grid at the lowest applicable industrial tariff rate under regulations that were to expire in...

  • Page 26
    ... benefits. The company also has a number of domestic and international registered trademarks that have significant recognition within the markets that are served. Examples include Alcoa and the Alcoa Symbol for aluminum products, Howmet metal castings, Huck® fasteners, Kawneer building panels...

  • Page 27
    ... Australia plant has demonstrated the viability of the technology, and the company is investigating options to deploy the technology throughout Alcoa's refinery system. A number of products were commercialized in 2008 including Dura Bright® wheels for automotive applications; forged aluminum wheels...

  • Page 28
    ... home-produced regional jet, ARJ21-700. In the automotive market, Alcoa also commercialized its proprietary aluminum mold alloy, QC-10®, offering an alternative to customers that produce plastic parts using steel tooling. The company currently has at least 60 new products in various development...

  • Page 29
    ... volatility in aluminum prices, due at least in part to the deteriorating global economic environment. At the same time, there is often a lag effect for a reduction in LME-linked costs of production. For example, reduction of certain key smelting input costs (such as alumina and power) may lag...

  • Page 30
    ... for its alumina refineries and primary aluminum smelters from internal sources or from long-term contracts, the following could affect Alcoa's results of operations significant increases in electricity costs rendering smelter operations uneconomic; significant increases in natural gas prices...

  • Page 31
    ... supply balances and prices. Alcoa faces significant competition. As discussed in Part I, Item 1 (Business - Competitive Conditions) of this report, the markets for most aluminum products are highly competitive. Alcoa's competitors include a variety of both U.S. and non-U.S. companies in all major...

  • Page 32
    ...to product liability, health and safety, environmental matters, intellectual property rights, government contracts, taxes, and compliance with U.S. and foreign export laws, competition laws and sales and trading practices. Alcoa could be subject to fines, penalties, damages (in certain cases, treble...

  • Page 33
    ... at 390 Park Avenue, New York, New York 10022-4608. Alcoa's corporate center is located at 201 Isabella Street, Pittsburgh, Pennsylvania 15212-5858. The Alcoa Technical Center for research and development is located at 100 Technical Drive, Alcoa Center, Pennsylvania 15069. Alcoa leases some of its...

  • Page 34
    ...the Flat-Rolled Products Facilities section on page 11. ENGINEERED PRODUCTS AND SOLUTIONS See the table and related text in the Engineered Products and Solutions Facilities section on pages 12-13. PACKAGING AND CONSUMER Alcoa completed the sale of its packaging and consumer business in February 2008...

  • Page 35
    ... and incorporated various options for ice control. EPA will use this information to develop a remedy for the river. Alcoa adjusted the reserve in the fourth quarter of 2008 by an additional $40 million for increases associated with updated cost for a proposed remedy incorporating ice control and...

  • Page 36
    ... the Environmental Appeals Board decision to the United States District Court for the District of Columbia. As previously reported, in May 2005, Alcoa World Alumina LLC (AWA LLC) and SCA were among the defendants listed in a lawsuit brought by the Commissioner of the Department of Planning and...

  • Page 37
    ... George, et al., v. General Motors Corporation and Alcoa Inc., Docket No. 05-CV-1482. The complaint alleged personal injury and damages arising from exposure to PCB released from the defendants' industrial facilities in Massena, New York and sought certification of a class of plaintiffs comprised of...

  • Page 38
    ... the object of initiatives by the public authorities and a clear duty of the previous owner and plant seller. Alcoa has sued Alumix and Efim (the sellers of the Fusina site) before the Court of Rome for indemnification against any liability related to the pollution of former Alumix sites, purchased...

  • Page 39
    ... employees of Alcoa or Reynolds and spouses and dependents of such retirees alleging violation of the Employee Retirement Income Security Act (ERISA) and the Labor-Management Relations Act by requiring plaintiffs, beginning January 1, 2007, to pay health insurance premiums and increased co-payments...

  • Page 40
    ... electricity tariffs for industries are unlawful, Alcoa will have an opportunity to challenge the decision in the EU courts. As previously reported, on February 27, 2008, Alcoa Inc. received notice that Aluminium Bahrain B.S.C. (Alba) had filed suit against Alcoa Inc. and Alcoa World Alumina LLC...

  • Page 41
    ... Business System and the company's customer and quality initiatives. Mr. Christopher was elected a Vice President of Alcoa in 1999 and Executive Vice President in 2001. He was President of Alcoa Forged Products from 1996 to 2001. Klaus Kleinfeld, 51, Director, President and Chief Executive Officer...

  • Page 42
    ... of Alcoa's flat rolled products business in Europe. Before joining Alcoa, Mr. Wieser worked for Austria Metall Group, where he was an executive member of the board and chief operating officer from 1997 to 2000. The company's executive officers are elected or appointed to serve until the next annual...

  • Page 43
    ...II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. The company's common stock is listed on the New York Stock Exchange, Inc. (symbol AA). The company's quarterly high and low trading stock prices and dividends per common share for...

  • Page 44
    ... of the Standard & Poor's 500® Materials Index, a group of 29 companies which closely mirror the companies Alcoa used for return on capital comparisons to establish performance equity awards for senior management in 2008. FIVE-YEAR CUMULATIVE TOTAL RETURN Based upon an initial investment of $100...

  • Page 45
    ...2006 2007 2008 Alcoa Inc. $100 $226 $185 $200 $131 $223 $188 $181 $187 $232 $ 74 S&P 500 $100 $121 $110 $ 97 $ 76 $ 97 $108 $113 $131 $138 $ 87 S&P Materials $100 $125 $106 $109 $103 $143 $162 $169 $200 $245 $133 Copyright© 2009 Standard & Poor's, a division of The McGraw-Hill Companies Inc. All...

  • Page 46
    ... shares used to satisfy the exercise price related to stock options are not considered part of the publicly announced share repurchase program approved by Alcoa's Board of Directors as described in (b) below. (b) On October 8, 2007, Alcoa's Board of Directors approved a new share repurchase program...

  • Page 47
    Item 6. Selected Financial Data. (in millions, except per-share amounts and ingot prices) For the year ended December 31, Sales Income from continuing operations (Loss) income from discontinued operations Cumulative effect of accounting changes Net (loss) income Earnings (loss) per share: Basic: ...

  • Page 48
    ... worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa is a global company operating in 35 countries. Based upon the country where the point of sale occurred, North America and Europe generated...

  • Page 49
    ... 364-day revolving credit facility; initiated global headcount reductions; instituted a global salary and hiring freeze; and decided to sell the Electrical and Electronic Solutions, Global Foil, and Transportation Products Europe businesses and to close the lone remaining Auto Cast Wheels facility...

  • Page 50
    ... insurance program. Alcoa of Australia is part of Alcoa World Alumina and Chemicals (AWAC), which is 60% owned by Alcoa and 40% owned by Alumina Limited. Also in June 2008, Alcoa temporarily idled half of the aluminum production (three of six operating potlines or 120 kmt) at its Rockdale smelter...

  • Page 51
    ... aluminum volume; higher demand in the aerospace and packaging markets; and favorable foreign currency movements due to a stronger Euro. These positive contributions were mostly offset by the absence of seven months of sales associated with the soft alloy extrusion business. Cost of Goods Sold...

  • Page 52
    ...off of $84 in engineering costs related to a 1,500 kmt planned expansion of Jamalco's Clarendon, Jamaica refinery. - The Flat-Rolled Products segment was restructured through the following actions Restructuring and downsizing of the Mill Products businesses in Europe and North America, resulting in...

  • Page 53
    - The Engineered Products and Solutions segment was restructured through the following actions: • • Exiting of the Auto Cast Wheel business, through the closure of the only remaining facility, which employs approximately 270, by June 2009 for severance costs of $2; Consolidation of operations in...

  • Page 54
    ...-tax) reduction to the original impairment charge recorded in 2006. Consolidation of selected operations within the global hard alloy extrusion production operations serving the aerospace, automotive and industrial products markets, resulting in charges of $7 for severance costs associated with the...

  • Page 55
    ... of $47 related to a global flat-rolled product asset portfolio review and rationalization. - Reduction within the Primary Metals and Alumina segments' operations by approximately 330 positions to further strengthen the company's position on the global cost curve. This action resulted in charges...

  • Page 56
    ... presented were reclassified to reflect the EES business in discontinued operations. The EES business designs and manufactures electrical and electronic systems, wire harnesses and components for the ground transportation industry worldwide. In 2008, the EES business generated sales of $1,218 48

  • Page 57
    ... of the Engineered Products and Solutions segment were reclassified to reflect the movement of EES, the home exteriors business, and the Hawesville automotive casting facility into discontinued operations. Segment Information In 2008, management approved a realignment of Alcoa's reportable segments...

  • Page 58
    ... (total additional alumina production of 2,100 kmt, Alcoa's share is 1,134 kmt) and the development of the Juruti bauxite mine (total additional 2,600 kmt of bauxite, Alcoa's share is 1,560 kmt) by the end of the first half. Also, in response to negative market conditions, Alcoa plans to reduce...

  • Page 59
    ... movements related to a weaker U.S. dollar; costs associated with the Rockdale and Tennessee smelter curtailments; continued increases in raw material, freight, and energy costs; and Iceland smelter start-up costs were partially offset by higher realized prices. At December 31, 2008, Alcoa had...

  • Page 60
    ... investment castings; forgings and fasteners; aluminum wheels; integrated aluminum structural systems; and architectural extrusions used in the aerospace, automotive, building and construction, commercial transportation, and power generation markets. These products are sold directly to customers...

  • Page 61
    ... in the aerospace and industrial gas turbine markets; favorable prices and higher volumes in the building and construction business; and productivity improvements. These positive impacts were partially offset by demand decline in the North America heavy truck market. In 2009, market conditions in...

  • Page 62
    ... due to the absence of transaction costs related to the 2007 offer for Alcan Inc. ($30); A $492 increase in Restructuring and other charges, primarily due to significantly higher charges for the 2008 restructuring program; A $53 higher loss in Discontinued operations, mainly due to a $51 increase in...

  • Page 63
    ... associated with the planned sale of the Packaging and Consumer businesses; the absence of $83 in discrete income tax benefits in 2006 related to the finalization of certain tax reviews and audits and the reversal of valuation allowances related to international net operating losses; the absence...

  • Page 64
    ..., engineering, and regulatory status applicable to final closure. East St. Louis, IL-In response to questions regarding environmental conditions at the former East St. Louis operations, Alcoa and the City of East St. Louis, the owner of the site, entered into an administrative order with the EPA in...

  • Page 65
    ...it was deemed economically feasible; and all non-critical capital expenditures were stopped. Capital expenditures are deemed critical if they maintain Alcoa's compliance with the law, keep a facility operating, or satisfy customer requirements if the benefits outweigh the costs. The planned sale 57

  • Page 66
    ... stock compensation plans related to cash received for the exercise of stock options; and a $132 increase in minority interest contributions, primarily from an increase in contributions received from Alumina Limited, related to their share of capital spending at the São Luís and Juruti facilities...

  • Page 67
    ...merger, consolidation or sale of all or substantially all of its assets and (d) limitations on Alcoa's ability to change the nature of its business. The obligation of Alcoa to pay amounts outstanding under the Credit Facility may be accelerated upon the occurrence of an "Event of Default" as defined...

  • Page 68
    ... weaker than expected earnings, the result of falling aluminum prices, and weak end markets coupled with large capital spending and share repurchases (the existing share repurchase program has been temporarily suspended). Moody's Investors Service's (Moody's) long-term debt rating of Alcoa is Baa1...

  • Page 69
    ... in São Luís, the development of the Juruti bauxite mine, the Estreito hydroelectric power project in Brazil, and projects at various facilities in Russia and China. Also included are costs related to environmental control in new and expanded facilities totaling $241 in 2008, $274 in 2007, and...

  • Page 70
    ... about the Company's operating results and financial condition. Asset Retirement Obligations. Alcoa recognizes asset retirement obligations (AROs) related to legal obligations associated with the normal operation of Alcoa's bauxite mining, alumina refining, and aluminum smelting facilities. These...

  • Page 71
    ... market share, sales volumes and prices, costs to produce, tax rates, capital spending, discount rate, and working capital changes. Most of these assumptions vary significantly among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early...

  • Page 72
    ..., annual forfeiture rate, and exercise behavior. If any of these assumptions differ significantly from actual, stock-based compensation expense could be impacted. As part of Alcoa's stock-based compensation plan design, individuals who are retirement-eligible have a six-month requisite service...

  • Page 73
    ... assets and liabilities. On January 1, 2008, Alcoa adopted SFAS No. 157, "Fair Value Measurements," (SFAS 157) as it relates to financial assets and financial liabilities. In February 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) No. FAS 157-2, "Effective...

  • Page 74
    ...-for-sale securities. Alcoa uses quoted market prices to determine the fair value of available-for-sale securities. These financial instruments consist of exchange-traded fixed income and equity securities, and are classified in Level 1 of the fair value hierarchy. Derivative contracts. Derivative...

  • Page 75
    ... loss Purchases, sales, issuances, and settlements Transfers in and (or) out of Level 3 Balance at end of period Total (losses) or gains included in earnings attributable to the change in unrealized gains or losses relating to derivative contracts still held at December 31, 2008: Sales Cost of goods...

  • Page 76
    ... is not an actively traded market for electricity. Therefore, management utilizes various forecast services, historical relationships, and near term market actual pricing to determine the fair value. Gains and losses realized for the electricity contracts are included in Cost of goods sold on the...

  • Page 77
    ... 31, 2008 retained earnings. Prior to the effective date of this provision, the funded status of most of Alcoa's pension and other postretirement benefit plans were already measured as of December 31st. In September 2006, the Securities and Exchange Commission issued Staff Accounting Bulletin No...

  • Page 78
    ... of $11 ($7 after-tax) and $18 ($12 after-tax) related to stock options and stock awards, respectively. Effective January 1, 2006, Alcoa adopted EITF Issue No. 04-6, "Accounting for Stripping Costs Incurred During Production in the Mining Industry," (EITF 04-6). EITF 04-6 requires that stripping...

  • Page 79
    ... Operations for the write off of third-party costs related to potential business acquisitions. In April 2008, the FASB issued FSP No. FAS 142-3, "Determination of the Useful Life of Intangible Assets," (FSP FAS 142-3). FSP FAS 142-3 amends the factors that should be considered in developing...

  • Page 80
    ... activities: Total debt Dividends to shareholders Investing activities: Capital projects Payments related to acquisitions Totals Obligations for Operating Activities Energy-related purchase obligations consist primarily of electricity and natural gas contracts with expiration dates ranging from less...

  • Page 81
    ...an alumina refinery in São Luis; the development of a bauxite mine in Juruti; global rolled products expansion projects in Russia and China; and the continued investment in several hydroelectric power projects in Brazil. These projects are in various stages of development and, depending on business...

  • Page 82
    ... to the management, direction, and control of the Strategic Risk Management Committee (SRMC). The SRMC is composed of the chief executive officer, the chief financial officer, and other officers and employees that the chief executive officer selects. The SRMC reports to the Board of Directors on the...

  • Page 83
    ... in power contracts in Iceland and Brazil, and Alcoa's share of gains and losses on hedge contracts of Norwegian smelters that are accounted for under the equity method. Material Limitations-The disclosures with respect to commodity prices, interest rates, and foreign currency exchange risk...

  • Page 84
    ... the laws of the host countries in which the Company operates and potentially conflicting outside business interests of its employees. The Company maintains a systematic program to assess compliance with these policies. Management's Report on Internal Control over Financial Reporting Management is...

  • Page 85
    ... addition, in 2008, the Company's Chief Executive Officer provided to the New York Stock Exchange the annual CEO certification regarding the Company's compliance with the New York Stock Exchange's corporate governance listing standards. Klaus Kleinfeld President and Chief Executive Officer Charles...

  • Page 86
    ... opinions on these financial statements and on Alcoa's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform...

  • Page 87
    Alcoa and subsidiaries Statement of Consolidated Operations (in millions, except per-share amounts) For the year ended December 31, Sales (Q) Cost of goods sold (exclusive of expenses below) Selling, general administrative, and other expenses Research and development expenses Provision for ...

  • Page 88
    ..., plants, and equipment, net (H) Goodwill (E) Investments (I) Deferred income taxes (T) Other assets (J) Assets held for sale (B) Total Assets Liabilities Current liabilities: Short-term borrowings (K and X) Commercial paper (K and X) Accounts payable, trade Accrued compensation and retirement costs...

  • Page 89
    ... investing activities-asset sales (O) Provision for doubtful accounts Loss (income) from discontinued operations (B) Minority interests Stock-based compensation (R) Excess tax benefits from stock-based payment arrangements Other Changes in assets and liabilities, excluding effects of acquisitions...

  • Page 90
    ... losses and prior service cost related to pension and postretirement benefit plans, net of tax expense and minority interests of $153 Foreign currency translation adjustments Unrealized gains on available-for-sale securities, net of tax benefit of $222: Unrealized holding gains Net amount...

  • Page 91
    ... per share Stock-based compensation Common stock issued: compensation plans Repurchase of common stock Balance at end of 2007 Comprehensive loss: Net loss Other comprehensive (loss) income: Change in unrecognized losses and prior service cost related to pension and postretirement benefit plans, net...

  • Page 92
    ...units of production method is used to record depreciation. The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Segment Alumina Primary Metals Flat-Rolled Products Engineered Products and Solutions Structures...

  • Page 93
    Also during 2008, Alcoa completed a review of the estimated useful lives of its flat-rolled products and engineered products and solutions facilities. As a result of this review, for a portion of its flat-rolled products locations, Alcoa extended the useful lives of structures to an average of 33 ...

  • Page 94
    .... The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). Alcoa periodically enters into long-term supply contracts with alumina and aluminum customers and receives advance payments for product to be...

  • Page 95
    ...asset retirement obligations (AROs) related to legal obligations associated with the normal operation of Alcoa's bauxite mining, alumina refining, and aluminum smelting facilities. These AROs consist primarily of costs associated with spent pot lining disposal, closure of bauxite residue areas, mine...

  • Page 96
    As part of Alcoa's stock-based compensation plan design, individuals who are retirement-eligible have a six-month requisite service period in the year of grant. Equity grants are issued in January each year. As a result, a larger portion of expense will be recognized in the first and second quarters...

  • Page 97
    ..., earnings multiples, or indicative bids, when available. A number of significant estimates and assumptions are involved in the application of these techniques, including the forecasting of markets and market share, sales volumes and prices, costs and expenses, and multiple other factors. Management...

  • Page 98
    ...-for-sale securities. Alcoa uses quoted market prices to determine the fair value of available-for-sale securities. These financial instruments consist of exchange-traded fixed income and equity securities, and are classified in Level 1 of the fair value hierarchy. Derivative contracts. Derivative...

  • Page 99
    ... market prices. However, due to the length of the contract, the valuation model also requires management to estimate the long-term price of aluminum based upon anticipated changes in worldwide supply and demand. The embedded derivatives have been designated as hedges of forward sales of aluminum...

  • Page 100
    ... is not an actively traded market for electricity. Therefore, management utilizes various forecast services, historical relationships, and near term market actual pricing to determine the fair value. Gains and losses realized for the electricity contracts are included in Cost of goods sold on the...

  • Page 101
    ... of $11 ($7 after-tax) and $18 ($12 after-tax) related to stock options and stock awards, respectively. Effective January 1, 2006, Alcoa adopted EITF Issue No. 04-6, "Accounting for Stripping Costs Incurred During Production in the Mining Industry," (EITF 04-6). EITF 04-6 requires that stripping...

  • Page 102
    ... 141(R) requires acquisition-related costs to be expensed in the period in which the costs are incurred and the services are received instead of including such costs as part of the acquisition price. SFAS 141(R) becomes effective for Alcoa for any business combination with an acquisition date on or...

  • Page 103
    ... systems, wire harnesses and components for the ground transportation industry worldwide. In 2008, the EES business generated sales of $1,218 and had approximately 19,000 employees as of December 31, 2008. During 2006, Alcoa reclassified its home exteriors business to discontinued operations...

  • Page 104
    ... sale Liabilities: Accounts payable, trade Accrued expenses Other liabilities Liabilities of operations held for sale C. Asset Retirement Obligations Alcoa has recorded AROs related to legal obligations associated with the normal operations of bauxite mining, alumina refining, and aluminum smelting...

  • Page 105
    ...to changes in estimated costs. Employee termination and severance costs were recorded based on approved detailed action plans submitted by the operating locations that specified positions to be eliminated, benefits to be paid under existing severance plans, union contracts or statutory requirements...

  • Page 106
    ... of $54, primarily related to lease termination costs. - The Engineered Products and Solutions segment was restructured through the following actions: • • Exiting of the Auto Cast Wheel business, through the closure of the only remaining facility, which employs approximately 270, by June 2009...

  • Page 107
    ..., TX smelter (267 kmt) due to ongoing power supply issues with Rockdale's onsite supplier and the uneconomical power that Alcoa was forced to purchase in the open market as a result of such issues. Also during 2008, Alcoa recorded a loss of $43 ($32 after-tax) on the sale of its Packaging and...

  • Page 108
    ... the original impairment charge recorded in 2006. See Note I for additional information. Consolidation of selected operations within the global hard alloy extrusion production operations serving the aerospace, automotive and industrial products markets, resulting in charges of $7 for severance costs...

  • Page 109
    ... and other charges to the segment results would have been as follows: Alumina Primary Metals Flat-Rolled Products Engineered Products and Solutions Packaging and Consumer Segment total Corporate Total restructuring and other charges 2008 $ 89 94 289 88 45 605 334 $939 2007 $ (2) 56 67 189...

  • Page 110
    ... studies, including environmental and other contingent liabilities, which will be completed early in 2009. Lastly in March 2008, Alcoa received formal approval from regulators in China for the acquisition of the 27% outstanding minority interest in Alcoa Bohai Aluminum Industries Company Limited...

  • Page 111
    ...original purchase price. Alcoa is no longer subject to contingent payments related to the Alumínio acquisition. 2008 Divestitures. In February 2008, Alcoa completed the sale of its Packaging and Consumer businesses to Rank Group Limited (Rank). During 2008, Alcoa received $2,693 in cash in exchange...

  • Page 112
    ... post-closing adjustments. The home exteriors business was reflected in discontinued operations in the Consolidated Financial Statements. In 2008, Alcoa made a $47 contingent payment related to a 2003 acquisition (see 2008 Acquisitions). During both 2007 and 2006, Alcoa made a contingent payment of...

  • Page 113
    ... market through an investment broker. The following is a description of the transaction structure between Alcoa and SPPL and the related accounting impacts. On February 6, 2008, Alcoa contributed $1,200 of the $14,000 through the purchase of a Convertible Senior Secured Note (the "Note") executed...

  • Page 114
    ... are accounted for as available-for-sale securities by SPPL. Lehman Brothers International Europe (LBIE) was the custodian of the RTP shares for SPPL. In November 2008, SPPL transferred the RTP shares to a new custodian. See Note Y for additional information related to Alcoa's investment in SPPL...

  • Page 115
    ... (see Statement of Shareholders' Equity), as these gains were realized through the sale transaction. J. Other Assets December 31, Intangibles, net (E) Prepaid pension benefit (W) Prepaid gas transmission contract Cash surrender value of life insurance Deferred charges and other 2008 $ 610 122 217...

  • Page 116
    ... in Brazil and are not equivalent to the interest rates Alcoa would pay if such amounts were borrowed in the U.S. The first loan provides for a commitment of $209 (R$500), which is divided into five subloans, and will be used to pay for certain expenditures of the Juruti bauxite mine development...

  • Page 117
    ... costs, original issue discounts, and terminated interest rate swaps associated with the old notes, were deferred and will be amortized to interest expense using the effective interest method over the respective terms of the new notes. Alcoa recognized an immaterial loss for the early retirement...

  • Page 118
    ... 2007. Alcoa has the option to redeem the new notes, as a whole or in part, at any time or from time to time, on at least 30 days but not more than 60 days prior notice to the holders of the new notes at a redemption price specified in the new notes. The new notes are subject to repurchase upon the...

  • Page 119
    ...merger, consolidation or sale of all or substantially all of its assets and (d) limitations on Alcoa's ability to change the nature of its business. The obligation of Alcoa to pay amounts outstanding under the Credit Facility may be accelerated upon the occurrence of an "Event of Default" as defined...

  • Page 120
    ... Liabilities and Deferred Credits December 31, Deferred alumina and aluminum sales revenue Environmental remediation (N) Asset retirement obligations Fair value of derivative contracts Accrued compensation and retirement costs Other noncurrent liabilities 2008 $ 140 277 273 360 267 263 $1,580...

  • Page 121
    ...Alcoa or Reynolds Metals Company and spouses and dependents of such retirees alleging violation of the Employee Retirement Income Security Act (ERISA) and the Labor-Management Relations Act by requiring plaintiffs, beginning January 1, 2007, to pay health insurance premiums and increased co-payments...

  • Page 122
    ... status of certain significant reserves related to current or former Alcoa sites. Massena, NY-Alcoa has been conducting investigations and studies of the Grasse River, adjacent to Alcoa's Massena plant site, under a 1989 order from the U.S. Environmental Protection Agency (EPA) issued under the...

  • Page 123
    ..., engineering, and regulatory status applicable to final closure. East St. Louis, IL-In response to questions regarding environmental conditions at the former East St. Louis operations, Alcoa and the City of East St. Louis, the owner of the site, entered into an administrative order with the EPA in...

  • Page 124
    ... in annual operating expenses are the recurring costs of managing hazardous substances and environmental programs. These costs are estimated to be approximately 2% of cost of goods sold. Investments. Alumínio is a participant in several hydroelectric power construction projects in Brazil for...

  • Page 125
    ... into other purchase commitments for energy, raw materials, and other goods and services, which total $2,089 in 2009, $1,939 in 2010, $1,220 in 2011, $846 in 2012, $826 in 2013, and $13,472 thereafter. Operating Leases. Certain computer equipment, plant equipment, vehicles, and buildings are under...

  • Page 126
    ... evidence that prices paid by energy-intensive consumers were in line with the market, in addition to various legal arguments defending the legality of the Spanish tariff system. It is Alcoa's understanding that the Spanish tariff system for electricity is in conformity with all applicable laws and...

  • Page 127
    ... in Corporate. Alcoa's products are used worldwide in packaging, transportation (including aerospace, automotive, truck, trailer, rail, and shipping), building and construction, oil and gas, defense, and industrial applications. Total export sales from the U.S. included in continuing operations were...

  • Page 128
    ... investment castings; forgings and fasteners; aluminum wheels; integrated aluminum structural systems; and architectural extrusions used in the aerospace, automotive, building and construction, commercial transportation, and power generation markets. These products are sold directly to customers...

  • Page 129
    ...535 Engineered Packaging Products and and Solutions Consumer $5,602 $5,602 $ 149 209 503 $ 180 2,445 4,664 $5,251 $5,251 $ 146 177 409 $ 164 2,267 5,274 $4,877 $4,877 $ (6) 135 146 356 $ 112 2,242 5,202 $ $ $ $ 516 $ 516 $ 10 11 - Alumina 2008 Sales: Third-party sales Intersegment sales Total sales...

  • Page 130
    ... amount includes third-party sales of the three soft alloy extrusion facilities located in Brazil that were not contributed to the Sapa AB joint venture. In 2007 and 2006, the Corporate amount also includes the third-party sales of the soft alloy extrusion business that was contributed to the...

  • Page 131
    ...31, 2008, 92 million shares of common stock were reserved for issuance under Alcoa's stock-based compensation plans. Alcoa issues treasury shares upon the exercise of stock options and the conversion of stock awards. In October 2007, Alcoa's Board of Directors approved a new share repurchase program...

  • Page 132
    ... the outcome of Alcoa's annual return on capital results against the results of a comparator group of companies. However, an individual can earn a minimum number of options if Alcoa's return on capital meets or exceeds its cost of capital. Stock option features based on date of original grant are as...

  • Page 133
    ... of interest rates at the time of the grant based on the contractual life of the option. Dividend yield is based on a five-year average. Volatility is based on historical and implied volatilities over the term of the option. Alcoa utilizes historical option exercise and forfeiture data to estimate...

  • Page 134
    ... periods: Stock-based compensation expense (pretax) $46 25 1 $72 2009 2010 2011 Totals S. Earnings Per Share Basic earnings per common share (EPS) amounts are computed by dividing earnings after the deduction of preferred stock dividends by the average number of common shares outstanding. Diluted...

  • Page 135
    ... greater than the average market price of Alcoa's common stock. T. Income Taxes The components of income from continuing operations before taxes on income were as follows: 2008 $ (999) 1,791 $ 792 2007 $1,960 2,842 $4,802 2006 $ 404 3,111 $3,515 U.S. Foreign The provision (benefit) for taxes on...

  • Page 136
    ... no deferred taxes have been provided was $8,664 at December 31, 2008. Management has no plans to distribute such earnings in the foreseeable future. It is not practical to determine the deferred tax liability on these earnings. Alcoa and its subsidiaries file income tax returns in the U.S. federal...

  • Page 137
    ... are paid through pension trusts that are sufficiently funded to ensure that all plans can pay benefits to retirees as they become due. Most U.S. salaried and non-union hourly employees hired after March 1, 2006 will participate in a defined contribution plan instead of a defined benefit plan. 129

  • Page 138
    Alcoa maintains health care and life insurance benefit plans covering eligible U.S. retired employees and certain retirees from foreign locations. Generally, the medical plans pay a percentage of medical expenses, reduced by deductibles and other coverages. These plans are generally unfunded, except...

  • Page 139
    ...at beginning of year Service cost Interest cost Amendments Actuarial gains Divestitures Settlements Curtailments Benefits paid, net of participants' contributions Medicare Part D subsidy receipts Other transfers, net Exchange rate Benefit obligation at end of year Change in plan assets Fair value of...

  • Page 140
    ...) 51 Prior service cost (benefit) recognition Actuarial loss recognition As disclosed in Note F, Alcoa completed the sale of its Packaging and Consumer businesses to Rank in February 2008. In September 2008, Alcoa announced that it was temporarily idling the remaining production at its smelter in...

  • Page 141
    ... of the retiree life insurance benefit for certain U.S. employees who retire on or after April 1, 2008 and a charge of $4 related to Alcoa's soft alloy extrusion business. Also in 2007, Alcoa recorded a settlement credit of $2 as a component of net periodic benefit cost related to its pension...

  • Page 142
    ... rate Rate of compensation increase 2008 6.4% 4.0 2007 6.2% 4.0 The discount rate is determined using a yield curve model developed with the assistance of the Company's external actuaries. The plans' projected benefit obligation cash flows are discounted using yields on high quality corporate...

  • Page 143
    ...-percentage point change in these assumed rates would have the following effects: 1% 1% increase decrease Effect on total of service and interest cost components $ 4 $ (4) Effect on postretirement benefit obligations 61 (55) Plan Assets Alcoa's pension and postretirement plans' investment policy and...

  • Page 144
    ... contracts, embedded derivatives in power contracts in Iceland and Brazil, and Alcoa's share of gains and losses on hedge contracts of Norwegian smelters that are accounted for under the equity method. Fair Value Hedges Aluminum. Customers often require Alcoa to enter into long-term, fixed-price...

  • Page 145
    ... exposure in Brazil. No such contracts were outstanding as of December 31, 2008. Other Alcoa has also entered into certain derivatives to minimize its price risk related to other customer sales and pricing arrangements. Alcoa has not qualified these contracts for hedge accounting treatment and...

  • Page 146
    ... metrics based on the new S&P ratings. The report further stated that the S&P ratings reflect Alcoa's strong business position as one of the largest integrated aluminum producers in the world, with broad product, business, and geographic diversity and efficient alumina operations. On February 12...

  • Page 147
    ...Financial Information (unaudited) Quarterly Data (dollars in millions, except per-share amounts) First 2008 Sales Income (loss) from continuing operations Income (loss) from discontinued operations (B) Net income (loss) Earnings (loss) per common share...0.33 Third $7,039 $ 780 (225) $ 555 $ 0.90 (0.26...

  • Page 148
    ... Controls and Procedures Alcoa's Chief Executive Officer and Chief Financial Officer have evaluated the company's disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as of the end of the period covered by this report, and they have...

  • Page 149
    ... S-K regarding executive officers is set forth in Part I, Item 4A of this report under "Executive Officers of the Registrant". The information required by Item 405 of Regulation S-K is contained under the caption "Alcoa Stock Ownership - Section 16(a) Beneficial Ownership Reporting Compliance" of...

  • Page 150
    ... Statement Schedules. (a) The consolidated financial statements, financial statement schedule and exhibits listed below are filed as part of this report. (1) The company's consolidated financial statements, the notes thereto and the report of the Independent Registered Public Accounting Firm are...

  • Page 151
    ... of the Strategic Council executed December 21, 1994, incorporated by reference to exhibit 99.3 to the company's Current Report on Form 8-K (Commission file number 1-3610) dated November 28, 2001. Amended and Restated Limited Liability Company Agreement of Alcoa Alumina & Chemicals, L.L.C. dated...

  • Page 152
    ...-Q for the quarter ended September 30, 2008. Acquisition Agreement, dated December 21, 2007, between Alcoa Inc. and Rank Group Limited, incorporated by reference to exhibit 10(h) to the company's Annual Report on Form 10-K for the year ended December 31, 2007. Alcoa Stock Acquisition Plan, effective...

  • Page 153
    ... Benefit Plan, Plan C, effective December 29, 2008. Deferred Fee Plan for Directors, as amended effective July 9, 1999, incorporated by reference to exhibit 10(g)(1) to the company's Quarterly Report on Form 10-Q (Commission file number 1-3610) for the quarter ended June 30, 1999. Restricted Stock...

  • Page 154
    ... to Deferred Compensation Plan, effective December 29, 2008. 10(q). Summary of the Executive Split Dollar Life Insurance Plan, dated November 1990, incorporated by reference to exhibit 10(m) to the company's Annual Report on Form 10-K (Commission file number 13610) for the year ended December 31...

  • Page 155
    ... 10(gg)(3) to the company's Annual Report on Form 10-K for the year ended December 31, 2005. 10(ff)(4). Amendments to Global Pension Plan, effective December 29, 2008. 10(gg). Executive Severance Agreement, as amended and restated effective December 8, 2008, between Alcoa Inc. and Klaus Kleinfeld...

  • Page 156
    ...nn). Reynolds Metals Company Benefit Restoration Plan for New Retirement Program, as amended through December 31, 2005, incorporated by reference to exhibit 10(rr) to the company's Annual Report on Form 10-K for the year ended December 31, 2005. Global Expatriate Employee Policy (pre-January 1, 2003...

  • Page 157
    ... Nos. 10(i) through 10(uu) are management contracts or compensatory plans required to be filed as Exhibits to this...in certain instances, are no longer required to be filed as Exhibits. No other instruments defining the rights of holders of long-term debt of the registrant or its subsidiaries have ...

  • Page 158
    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON FINANCIAL STATEMENT SCHEDULE To the Board of Directors of Alcoa Inc.: Our audits of the consolidated financial statements and of the effectiveness of internal control over financial reporting referred to in our report dated February 13, 2009...

  • Page 159
    ... accounts are due to the write-off of uncollectible accounts. Amounts related to the income tax valuation allowance are primarily due to the utilization of tax loss carryforwards. The financial information for all prior periods presented was reclassified to reflect assets held for sale. 151

  • Page 160
    ... Accounting Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date Klaus Kleinfeld President and Chief Executive...

  • Page 161
    Exhibit 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES FOR THE YEAR ENDED DECEMBER 31, (in millions, except ratios) 2008 2007 2006 2005 2004 Earnings: Income from continuing operations before taxes on income Minority interests' share of earnings of majority-owned subsidiaries without fixed ...

  • Page 162
    ... Alcoa Inter-America, Inc. Alcoa International (Asia) Limited Alcoa Australian Holdings Pty. Ltd. Alcoa of Australia Limited Alcoa UK Holdings Limited Alcoa Manufacturing (G.B.) Limited Sapa AB1 Alcoa World Alumina LLC2 AAC Holdings Company Alcoa Minerals of Jamaica, L.L.C. Suriname Aluminum Company...

  • Page 163
    ... International Holdings Company holds 27.81% of Alcoa's 45.45% equity investment. Alcoa agreed to exchange its interest in Sapa AB for an interest in Elkem Aluminium ANS, as described above in this report. Registered to do business in Alabama, Arkansas, California, Florida, Georgia, Louisiana, North...

  • Page 164
    ...INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...Alcoa Inc. and its subsidiaries of our report dated February 13, 2009 relating to the financial statements, financial schedule, and the effectiveness of internal control over financing reporting, which appears in this Form 10-K. Pittsburgh, Pennsylvania...

  • Page 165
    ...'s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have...

  • Page 166
    ...'s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have...

  • Page 167
    ...undersigned officers of Alcoa Inc., a Pennsylvania corporation (the "Company"), does hereby certify that: The Annual Report on Form 10-K for the year ended December 31, 2008 (the "Form 10-K") of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act...

  • Page 168

  • Page 169
    ... Diluted (loss) earnings per share (3) (0.09) 2.95 2.57 Dividends declared 0.680 0.680 0.600 Book value (4) 14.60 19.30 16.80 Price range: High 44.77 48.77 36.96 Low 6.80 28.09 26.39 Operating Data (thousands of metric tons) Alumina shipments (5) 8,041 7,834 8,420 Aluminum product shipments: Primary...

  • Page 170
    ... (loss) earnings per share on net (loss) income. (4) Book value = (Total shareholders' equity minus Preferred stock) divided by Common stock outstanding, end of year. (5) Alumina shipments for 2003 through 2005 were restated to reflect total alumina shipments rather than only smelter-grade alumina...

  • Page 171
    ..., Former Chief Executive Officer, Alcatel-Lucent Henry B. Schacht, Managing Director and Senior Advisor, Warburg Pincus LLC Ratan N. Tata, Chairman, Tata Sons Limited Franklin A. Thomas, Consultant, The Study Group Ernesto Zedillo, Director, Yale Center for the Study of Globalization Officers...

  • Page 172
    ... shareholder questions on other matters related to Alcoa, write to Corporate Secretary, Alcoa, 390 Park Avenue, New York, NY 10022-4608, call 1 212 836 2732, or e-mail [email protected]. Company News Visit www.alcoa.com for Securities and Exchange Commission filings, quarterly earnings...

  • Page 173
    Values Integrity Alcoa's foundation is our integrity. We are open, honest and trustworthy in dealing with customers, suppliers, coworkers, shareholders and the communities where we have an impact. Environment, Health and Safety We work safely in a manner that protects and promotes the health and ...