Alcoa 2009 Annual Report Download - page 142
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appropriate. In 2009 and 2008, contributions to Alcoa’s pension plans were $128 and $523 ($433 were voluntary). The
minimum required cash contribution to the pension plans in 2010 is estimated to be $100, all of which is for
international plans. There is no minimum required cash contribution for U.S. plans in 2010 based on the provisions of
the Worker, Retiree, and Employer Recovery Act of 2008 (see Note Y).
Benefit payments expected to be paid to pension and postretirement benefit plans’ participants and expected Medicare
Part D subsidy receipts are as follows:
Year ended December 31,
Pension
benefits
Gross Post-
retirement
benefits
Medicare Part D
subsidy receipts
Net Post-
retirement
benefits
2010 $ 830 $ 315 $ 30 $ 285
2011 820 320 30 290
2012 830 320 30 290
2013 840 315 35 280
2014 850 315 35 280
2015 through 2019 4,370 1,435 155 1,280
$8,540 $3,020 $315 $2,705
Defined Contribution Plans
Alcoa sponsors savings and investment plans in several countries, including the U.S. and Australia. Expenses related to
these plans were $97 in 2009, $134 in 2008, and $139 in 2007. In the U.S., employees may contribute a portion of their
compensation to the plans, and Alcoa matches, mostly in company stock, a portion of these contributions. Effective in
2009, employees are permitted to diversify all or any portion of their company stock match. In early 2009, Alcoa
suspended employer-matching contributions for U.S. salaried participants for one year.
X. Derivatives and Other Financial Instruments
Derivatives. Alcoa is exposed to certain risks relating to its ongoing business operations, including financial, market,
political, and economic risks. The following discussion provides information regarding Alcoa’s exposure to the risks of
changing commodity prices, interest rates, and foreign currency exchange rates.
Alcoa’s commodity and derivative activities are subject 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 scope of its activities.
The aluminum, energy, interest rate, and foreign exchange contracts are held for purposes other than trading. They are
used primarily to mitigate uncertainty and volatility, and to cover underlying exposures. Alcoa is not involved in
trading activities for energy, weather derivatives, or other nonexchange commodity trading activities.
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