Alcoa 2011 Annual Report Download - page 40

common global infrastructure across Alcoa for data, processes and supporting software). There is no assurance that
these initiatives will all be completed or beneficial to Alcoa or that estimated cost savings from such activities will be
realized.
Alcoa may not be able to successfully develop and implement technology initiatives.
Alcoa is working on developments in advanced smelting process technologies, including inert anode and carbothermic
technology, in addition to multi-alloy casting processes. There can be no assurance that such technologies will be
commercially feasible or beneficial to Alcoa.
Alcoa’s business and growth prospects may be negatively impacted by reductions in its capital expenditures.
Alcoa requires substantial capital to invest in greenfield and brownfield projects and to maintain and prolong the life
and capacity of its existing facilities. For 2012, Alcoa has targeted generating positive cash flow from operations that
will exceed capital spending. Insufficient cash generation may negatively impact Alcoa’s ability to fund as planned its
sustaining and growth capital projects. Over the long term, Alcoa’s ability to take advantage of forecasted global
demand growth for aluminum may be constrained by earlier capital expenditure restrictions, and the long-term value of
its business could be adversely impacted. The company’s position in relation to its competitors may also deteriorate.
Alcoa may also need to address commercial and political issues in relation to its reductions in capital expenditures in
certain of the jurisdictions in which it operates. If Alcoa’s interest in its joint ventures is diluted or it loses key
concessions, its growth could be constrained. Any of the foregoing could have a material adverse effect on the
company’s business, results of operations, financial condition and prospects.
Unexpected events may increase Alcoa’s cost of doing business or disrupt Alcoa’s operations.
Unexpected events, including fires or explosions at facilities, natural disasters, war or terrorist activities, unplanned
outages, supply disruptions, or failure of equipment or processes to meet specifications may increase the cost of doing
business or otherwise impact Alcoa’s financial performance. Further, existing insurance arrangements may not provide
protection for all of the costs that may arise from such events.
Cyber attacks may threaten the integrity of Alcoa’s trade secrets and sensitive intellectual property.
The company has identified attempts to gain unauthorized access through the Internet to our information systems. The
purpose of these attempts appears to have been to establish command and control and then export company-sensitive
data. To our knowledge, no such attack was ultimately successful. However, the success of such attacks and the
resulting damage may only be clear over time and after intensive analysis. Should such an attack succeed, the impact
may be material to the company in terms of lost intellectual property, trade secrets, product development data, and
other business development data.
The above list of important factors is not all-inclusive or necessarily in order of importance.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Alcoa’s principal office is located 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.
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