Discontinued Operations And Assets Held For Sale

6 Months Ended

Jun. 30, 2011

Discontinued Operations And Assets Held For Sale

Discontinued Operations And Assets Held for Sale

C. Discontinued Operations and Assets Held for Sale – For the second quarter and six months ended June 30, 2011 and 2010, there were no active businesses classified as discontinued operations. Activity of discontinued operations in all periods presented represents post-closing and other adjustments related to divested businesses previously classified as discontinued operations.

The following table details selected financial information of discontinued operations:

	Second quarter ended June  30,						Six months ended June  30,
	2011			2010			2011			2010
Sales	$	—		$	—		$	—		$	—
Loss from operations before income taxes	$	(6	)	$	(1	)	$	(7	)	$	(13	)
Benefit for income taxes		2			—			2			5
Loss from discontinued operations	$	(4	)	$	(1	)	$	(5	)	$	(8	)

In the 2011 second quarter and six-month period, discontinued operations included an additional loss of $3 ($5 pretax) related to the wire harness and electrical portion (divested in June 2009) of the Electrical and Electronic Solutions (EES) business as a result of a negotiated preliminary settlement related to claims filed in 2010 against Alcoa by Platinum Equity in an insolvency proceeding in Germany. The 2011 second quarter and six-month period also included an additional loss of $1 ($1 pretax) and $2 ($2 pretax), respectively, related to both the wire harness and electrical portion and the electronics portion (divested in December 2009) of the EES business for a number of small post-closing and other adjustments. In the 2010 second quarter and six-month period, discontinued operations included an additional loss of $1 ($1 pretax) and $2 ($4 pretax), respectively, related to the electronics portion of the EES business for the settling of working capital, which was not included in the divestiture transaction. The 2010 six-month period also included an additional loss of $6 ($9 pretax) related to the wire harness and electrical portion of the EES business as a result of a contract settlement with a former customer of this business.

For both periods presented in the accompanying Consolidated Balance Sheet, the assets and liabilities of operations classified as held for sale included the Global Foil business (one remaining plant located in Brazil), the electronics portion of the EES business (working capital components), and the Hawesville, KY automotive casting facility.

The major classes of assets and liabilities of operations held for sale were as follows:

	June 30, 2011		December 31, 2010
Assets:
Receivables	$	33	$	28
Inventories		26		22
Properties, plants, and equipment		36		35
Other assets		11		14
Assets held for sale	$	106	$	99
Liabilities:
Accounts payable, trade	$	9	$	10
Accrued expenses		20		21
Liabilities of operations held for sale	$	29	$	31