Segment Information

3 Months Ended

Mar. 31, 2013

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
First quarter ended March 31, 2013
Sales:
Third-party sales	$	826		$	1,758		$	1,779		$	1,423	$	5,786
Intersegment sales		595			727			51			—		1,373
Total sales	$	1,421		$	2,485		$	1,830		$	1,423	$	7,159
Profit and loss:
Equity income (loss)	$	1		$	(9	)	$	(4	)	$	—	$	(12	)
Depreciation, depletion, and amortization		109			135			57			40		341
Income taxes		14			1			39			84		138
ATOI		58			39			81			173		351
First quarter ended March 31, 2012
Sales:
Third-party sales	$	775		$	1,944		$	1,845		$	1,390	$	5,954
Intersegment sales		617			761			44			—		1,422
Total sales	$	1,392		$	2,705		$	1,889		$	1,390	$	7,376
Profit and loss:
Equity income (loss)	$	1		$	(2	)	$	(1	)	$	—	$	(2	)
Depreciation, depletion, and amortization		114			135			57			40		346
Income taxes		(1	)		(13	)		51			73		110
ATOI		35			10			102			157		304

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

	First quarter ended March  31,
	2013			2012
Total segment ATOI	$	351		$	304
Unallocated amounts (net of tax):
Impact of LIFO		(2	)		—
Interest expense		(75	)		(80	)
Noncontrolling interests		(21	)		(5	)
Corporate expense		(67	)		(64	)
Restructuring and other charges		(5	)		(7	)
Other		(32	)		(54	)
Consolidated net income attributable to Alcoa	$	149		$	94

Items required to reconcile total segment ATOI to consolidated net 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.