Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Information

H. Segment Information – On January 1, 2013, management revised the inventory-costing method used by certain locations within the Global Rolled Products and Engineered Products and Solutions segments, which affects the determination of the respective segment’s profitability measure, After-tax operating income (ATOI). Management made the change in order to improve internal consistency and enhance industry comparability. This revision does not impact the consolidated results of Alcoa. Segment information for all prior periods presented was revised to reflect this change.

The operating results of Alcoa’s reportable segments were as follows (differences between segment totals and consolidated totals are in Corporate):

	Alumina		Primary Metals		Global Rolled Products		Engineered Products and Solutions		Total
Second quarter ended June 30, 2013
Sales:
Third-party sales	$	822	$	1,620	$	1,877	$	1,468	$	5,787
Intersegment sales		581		677		43		—		1,301
Total sales	$	1,403	$	2,297	$	1,920	$	1,468	$	7,088
Profit and loss:
Equity loss	$	(1)	$	(7)	$	(2)	$	—	$	(10)
Depreciation, depletion, and amortization		115		132		55		39		341
Income taxes		14		(25)		32		94		115
ATOI		64		(32)		79		193		304
Second quarter ended June 30, 2012
Sales:
Third-party sales	$	750	$	1,804	$	1,913	$	1,420	$	5,887
Intersegment sales		576		782		44		—		1,402
Total sales	$	1,326	$	2,586	$	1,957	$	1,420	$	7,289
Profit and loss:
Equity income (loss)	$	1	$	(9)	$	(2)	$	—	$	(10)
Depreciation, depletion, and amortization		114		133		57		39		343
Income taxes		(6)		(19)		34		76		85
ATOI		23		(3)		78		157		255
	Alumina		Primary Metals		Global Rolled Products		Engineered Products and Solutions		Total
Six months ended June 30, 2013
Sales:
Third-party sales	$	1,648	$	3,378	$	3,656	$	2,891	$	11,573
Intersegment sales		1,176		1,404		94		—		2,674
Total sales	$	2,824	$	4,782	$	3,750	$	2,891	$	14,247
Profit and loss:
Equity loss	$	—	$	(16)	$	(6)	$	—	$	(22)
Depreciation, depletion, and amortization		224		267		112		79		682
Income taxes		28		(24)		71		178		253
ATOI		122		7		160		366		655
Six months ended June 30, 2012
Sales:
Third-party sales	$	1,525	$	3,748	$	3,758	$	2,810	$	11,841
Intersegment sales		1,193		1,543		88		—		2,824
Total sales	$	2,718	$	5,291	$	3,846	$	2,810	$	14,665
Profit and loss:
Equity income (loss)	$	2	$	(11)	$	(3)	$	—	$	(12)
Depreciation, depletion, and amortization		228		268		114		79		689
Income taxes		(7)		(32)		85		149		195
ATOI		58		7		180		314		559

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

	Second quarter ended June  30,						Six months ended June 30,
	2013			2012			2013			2012
Total segment ATOI	$	304		$	255		$	655		$	559
Unallocated amounts (net of tax):
Impact of LIFO		5			19			3			19
Interest expense		(76	)		(80	)		(151	)		(160	)
Noncontrolling interests		29			17			8			12
Corporate expense		(71	)		(69	)		(138	)		(133	)
Restructuring and other charges		(211	)		(10	)		(216	)		(17	)
Other		(99	)		(134	)		(131	)		(188	)
Consolidated net (loss) income attributable to Alcoa	$	(119	)	$	(2	)	$	30		$	92

Items required to reconcile total segment ATOI to consolidated net (loss) income 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, 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.