Alcoa 2010 Annual Report Download - page 124

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Additionally, Alcoa has entered into other purchase commitments for energy, raw materials, and other goods and
services, which total $2,966 in 2011, $1,831 in 2012, $1,216 in 2013, $1,148 in 2014, $1,074 in 2015, and $9,396
thereafter.
Operating Leases. Certain computer equipment, plant equipment, vehicles, and buildings are under operating lease
agreements. Total expense from continuing operations for all leases was $260 in 2010, $249 in 2009, and $275 in 2008.
Under long-term operating leases, minimum annual rentals are $244 in 2011, $205 in 2012, $121 in 2013, $95 in 2014,
$84 in 2015, and $199 thereafter.
Letters of Credit. Alcoa has outstanding letters of credit primarily related to workers’ compensation, derivative
contracts, and leasing obligations. The total amount committed under these letters of credit, which expire at various
dates, mostly in 2011, was $350 at December 31, 2010.
Guarantees. Alcoa has outstanding bank guarantees related to legal, customs duties, and leasing obligations, among
others. The total amount committed under these guarantees, which expire at various dates, was $425 at December 31,
2010. Alcoa has also issued guarantees of third-party obligations related to project financing for hydroelectric power
projects in Brazil and the aluminum complex in Saudi Arabia (see Note I), which expire in 2015 through 2027, that
total $553 at December 31, 2010.
Surety Bonds. Alcoa has outstanding surety bonds primarily related to customs duties, self-insurance, and legal
obligations. The total amount committed under these bonds, which automatically renew or expire at various dates,
mostly in 2011, was $154 at December 31, 2010.
O. Other Expenses (Income), Net
2010 2009 2008
Equity (income) loss $(14) $ 14 $(41)
Interest income (19) (18) (53)
Foreign currency losses (gains), net 13 (82) 74
Net gain from asset sales (9) (106) (50)
Net loss (gain) on mark-to-market derivative contracts (X) 37 62 (38)
Other, net (3) (31) 49
$ 5 $(161) $(59)
In 2009, Net gain from asset sales included a $188 gain related to the Elkem/Sapa AB exchange transaction (see
Note F), a $182 loss on the sale of the SPPL investment (see Note I), and a $92 gain related to the acquisition of a BHP
subsidiary (see Note F).
116