Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

J. Segment Information – The operating results of Alcoa's reportable segments were as follows (differences between segment totals and consolidated totals are in Corporate):

	Alumina		Primary Metals			Flat- Rolled Products		Engineered Products and Solutions		Total
Second quarter ended June 30, 2011
Sales:
Third-party sales	$	926	$	2,145		$	2,085	$	1,370	$	6,526
Intersegment sales		723		922			62		—		1,707
Total sales	$	1,649	$	3,067		$	2,147	$	1,370	$	8,233
Profit and loss:
Equity income (loss)	$	22	$	(1	)	$	—	$	—	$	21
Depreciation, depletion, and amortization		112		142			60		41		355
Income taxes		60		55			35		72		222
After-tax operating income (ATOI)		186		201			99		149		635
Second quarter ended June 30, 2010
Sales:
Third-party sales	$	701	$	1,710		$	1,574	$	1,122	$	5,107
Intersegment sales		530		693			40		—		1,263
Total sales	$	1,231	$	2,403		$	1,614	$	1,122	$	6,370
Profit and loss:
Equity income	$	4	$	1		$	—	$	—	$	5
Depreciation, depletion, and amortization		107		142			57		38		344
Income taxes		41		—			28		48		117
ATOI		94		109			71		107		381

	Alumina		Primary Metals		Flat- Rolled Products		Engineered Products and Solutions		Total
Six months ended June 30, 2011
Sales:
Third-party sales	$	1,736	$	4,125	$	3,977	$	2,617	$	12,455
Intersegment sales		1,356		1,761		131		—		3,248
Total sales	$	3,092	$	5,886	$	4,108	$	2,617	$	15,703
Profit and loss:
Equity income	$	25	$	—	$	—	$	1	$	26
Depreciation, depletion, and amortization		215		283		118		79		695
Income taxes		104		108		68		134		414
ATOI		328		403		180		279		1,190
Six months ended June 30, 2010
Sales:
Third-party sales	$	1,339	$	3,412	$	3,009	$	2,196	$	9,956
Intersegment sales		1,121		1,316		86		—		2,523
Total sales	$	2,460	$	4,728	$	3,095	$	2,196	$	12,479
Profit and loss:
Equity income	$	6	$	1	$	—	$	1	$	8
Depreciation, depletion, and amortization		199		289		116		79		683
Income taxes		68		18		46		79		211
ATOI		166		232		101		188		687

The following table reconciles total segment ATOI to consolidated net income (loss) attributable to Alcoa:

	Second quarter ended June  30,						Six months ended June 30,
	2011			2010			2011			2010
Total segment ATOI	$	635		$	381		$	1,190		$	687
Unallocated amounts (net of tax):
Impact of LIFO		(27	)		(3	)		(51	)		(17	)
Interest expense		(106	)		(77	)		(178	)		(154	)
Noncontrolling interests		(55	)		(34	)		(113	)		(56	)
Corporate expense		(76	)		(59	)		(143	)		(126	)
Restructuring and other charges		(22	)		(21	)		(28	)		(143	)
Discontinued operations		(4	)		(1	)		(5	)		(8	)
Other		(23	)		(50	)		(42	)		(248	)
Consolidated net income (loss) attributable to Alcoa	$	322		$	136		$	630		$	(65	)

Items required to reconcile total segment ATOI to consolidated net income (loss) attributable to Alcoa include: the impact of LIFO inventory accounting; interest expense; noncontrolling interests; corporate expense (general administrative and selling expenses of operating the corporate headquarters and other global administrative facilities, along with depreciation and amortization on corporate-owned assets); restructuring and other charges; discontinued operations; and other items, including intersegment profit eliminations and other metal adjustments, 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 details segment assets:

	June 30,		December 31,
	2011		2010
Alumina	$	10,560	$	9,967
Primary Metals		12,749		11,947
Flat-Rolled Products		5,248		4,606
Engineered Products and Solutions		5,995		5,434
Total segment assets	$	34,552	$	31,954