Alcoa 2013 Annual Report Download - page 82

operations; and other items, including intersegment profit eliminations, differences between tax rates applicable to the
segments and the consolidated effective tax rate, the results of the soft alloy extrusions business in Brazil, and other
nonoperating items such as foreign currency transaction gains/losses and interest income.
The following table reconciles total segment ATOI to consolidated net (loss) income attributable to Alcoa:
2013 2012 2011
Total segment ATOI $ 1,217 $1,357 $1,885
Unallocated amounts (net of tax):
Impact of LIFO 52 20 (38)
Interest expense (294) (319) (340)
Noncontrolling interests (41) 29 (194)
Corporate expense (284) (282) (290)
Impairment of goodwill (1,731) - -
Restructuring and other charges (607) (142) (196)
Discontinued operations - - (3)
Other (597) (472) (213)
Consolidated net (loss) income attributable to Alcoa $(2,285) $ 191 $ 611
The significant changes in the reconciling items between total segment ATOI and consolidated net (loss) income
attributable to Alcoa for 2013 compared with 2012 consisted of:
• a change in the Impact of LIFO, mostly due to lower prices for aluminum, driven by lower LME prices, and
significant reductions in LIFO inventory quantities, which caused a partial liquidation of the lower cost LIFO
inventory base;
• a decrease in Interest expense, principally caused by a 7% lower average debt level, which was mostly
attributable to lower outstanding long-term debt due to the June 2013 repayment of $422 in 6.00% Notes and
payments associated with the loans supporting growth projects in Brazil;
• a change in Noncontrolling interests, mainly due to improved operating results of AWAC, principally driven
by net favorable foreign currency movements and net productivity improvements, somewhat offset by an
increase in input costs, and a favorable change in charges allocated to Noncontrolling interest related to a
legal matter (see Noncontrolling Interests in Earnings Summary above);
• an Impairment of goodwill related to the annual impairment review of the Primary Metals segment (see
Goodwill in Critical Accounting Policies and Estimates below);
• an increase in Restructuring and other charges, mostly due to a charge for a legal matter ($322) and exit costs
related to the permanent shutdown and demolition of certain structures at three smelter locations ($183),
slightly offset by the absence of a charge for the civil portion of a legal matter ($67); and
• a change in Other, primarily due to a $372 discrete income tax charge for valuation allowances on certain
deferred tax assets in Spain and the U.S., partially offset by the absence of both a net charge for five
environmental remediation matters ($129) and a charge for the write-off of goodwill and capitalized interest
related to the 2012 sale of U.S. hydroelectric power assets that were not included in the assets of the Primary
Metals segment ($102).
The significant changes in the reconciling items between total segment ATOI and consolidated net income attributable
to Alcoa for 2012 compared with 2011 consisted of:
• a change in the Impact of LIFO, due to lower prices for alumina and metal, both of which were driven by a
decline in LME prices, and lower costs for calcined coke;
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