Alcoa 2010 Annual Report Download - page 147
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Benefit payments expected to be paid to pension and other postretirement benefit plans’ participants and expected
Medicare Part D subsidy receipts are as follows:
Year ended December 31,
Pension
benefits
Gross Other Post-
retirement
benefits
Medicare Part D
subsidy receipts
Net Other Post-
retirement
benefits
2011 $ 870 $ 305 $ 30 $ 275
2012 850 310 30 280
2013 860 310 35 275
2014 870 305 35 270
2015 870 305 35 270
2016 through 2020 4,490 1,370 155 1,215
$8,810 $2,905 $320 $2,585
Defined Contribution Plans
Alcoa sponsors savings and investment plans in several countries, including the U.S. and Australia. Expenses related to
these plans were $119 in 2010, $97 in 2009, and $134 in 2008. 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 were 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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