Discontinued Operations And Assets Held For Sale

9 Months Ended

Sep. 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 third quarter and nine months ended September 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:

	Third quarter  ended September 30,				Nine months  ended September 30,
	2011		2010		2011			2010
Sales	$	—	$	—	$	—		$	—
Loss from operations before income taxes	$	—	$	—	$	(7	)	$	(13	)
Benefit for income taxes		—		—		2			5
Loss from discontinued operations	$	—	$	—	$	(5	)	$	(8	)

In the 2011 nine-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 and an additional loss of $2 ($2 pretax) 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 nine-month period, discontinued operations 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 and an additional loss of $2 ($4 pretax) related to the electronics portion of the EES business for the settling of working capital, which was not included in the divestiture transaction.

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:

	September 30, 2011		December 31, 2010
Assets:
Receivables	$	29	$	28
Inventories		22		22
Properties, plants, and equipment		21		35
Other assets		6		14
Assets held for sale	$	78	$	99
Liabilities:
Accounts payable, trade	$	8	$	10
Accrued expenses		17		21
Liabilities of operations held for sale	$	25	$	31