Alcoa 2015 Annual Report Download - page 104

Act of 2014; and the Bipartisan Budget Act of 2015. Other postretirement benefit payments are expected to
approximate $220 to $230 annually for years 2016 through 2020 and $195 annually for years 2021 through 2025. Such
payments will be slightly offset by subsidy receipts related to Medicare Part D, which are estimated to be
approximately $15 to $20 annually for years 2016 through 2025. Alcoa has determined that it is not practicable to
present pension funding and other postretirement benefit payments beyond 2020 and 2025, respectively.
Layoff and other restructuring payments expected to be paid within one year primarily relate to severance costs.
Amounts scheduled to be paid beyond one year are related to ongoing site remediation work and special layoff benefit
payments.
Deferred revenue arrangements require Alcoa to deliver alumina and sheet and plate to certain customers over the
specified contract period (through 2027 for an alumina contract and through 2020 for a sheet and plate contract). While
these obligations are not expected to result in cash payments, they represent contractual obligations for which the
Company would be obligated if the specified product deliveries could not be made.
Uncertain tax positions taken or expected to be taken on an income tax return may result in additional payments to tax
authorities. The amount in the preceding table includes interest and penalties accrued related to such positions as of
December 31, 2015. The total amount of uncertain tax positions is included in the “Thereafter” column as the
Company is not able to reasonably estimate the timing of potential future payments. If a tax authority agrees with the
tax position taken or expected to be taken or the applicable statute of limitations expires, then additional payments will
not be necessary.
Obligations for Financing Activities
Total debt amounts in the preceding table represent the principal amounts of all outstanding debt, including short-term
borrowings and long-term debt. Maturities for long-term debt extend to 2042.
Alcoa has historically paid quarterly dividends on its preferred and common stock. Including dividends on preferred
stock, Alcoa paid $223 in dividends to shareholders during 2015. This amount includes dividends related to a new class
of preferred stock issued in September 2014 (see Financing Activities in Liquidity and Capital Resources above).
Because all dividends are subject to approval by Alcoa’s Board of Directors, amounts are not included in the preceding
table unless such authorization has occurred. There were $17 of preferred stock dividends approved to be paid on
January 1, 2016; however, Alcoa paid the dividends on December 31, 2015. As of December 31, 2015, there were
1,310,610,141 shares of outstanding common stock and 546,024 and 2,500,000 shares of outstanding Class A and
Class B preferred stock, respectively. The annual Class A and Class B preferred stock dividends are at the rate of $3.75
and $26.8750 per share, respectively, and the annual common stock dividend is $0.12 per share.
Obligations for Investing Activities
Capital projects in the preceding table only include amounts approved by management as of December 31, 2015.
Funding levels may vary in future years based on anticipated construction schedules of the projects. It is expected that
significant expansion projects will be funded through various sources, including cash provided from operations. Total
capital expenditures are anticipated to be approximately $1,400 in 2016.
Equity contributions represent Alcoa’s committed investment related to a joint venture in Saudi Arabia. Alcoa is a
participant in a joint venture to develop a new aluminum complex in Saudi Arabia, comprised of a bauxite mine,
alumina refinery, aluminum smelter, and rolling mill, which requires the Company to contribute approximately $1,100.
As of December 31, 2015, Alcoa has made equity contributions of $981. Based on changes to both the project’s capital
investment and equity and debt structure from the initial plans, the estimated $1,100 equity contribution may be
reduced. The timing of the amounts included in the preceding table may vary based on changes in anticipated
construction schedules of the project.
Payments related to acquisitions are based on provisions in certain acquisition agreements that state additional funds
are due to the seller from Alcoa if the businesses acquired achieve stated financial and operational thresholds. Amounts
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