Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

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			Global Rolled Products			Engineered Products and Solutions		Total
Third quarter ended September 30, 2014
Sales:
Third-party sales	$	886		$	1,865		$	1,926		$	1,495	$	6,172
Intersegment sales		482			730			52			—		1,264
Total sales	$	1,368		$	2,595		$	1,978		$	1,495	$	7,436
Profit and loss:
Equity loss	$	(7	)	$	—		$	(8	)	$	—	$	(15	)
Depreciation, depletion, and amortization		100			124			62			40		326
Income taxes		26			95			42			100		263
After-tax operating income (ATOI)		62			245			103			209		619
Third quarter ended September 30, 2013
Sales:
Third-party sales	$	846		$	1,600		$	1,805		$	1,437	$	5,688
Intersegment sales		513			691			47			—		1,251
Total sales	$	1,359		$	2,291		$	1,852		$	1,437	$	6,939
Profit and loss:
Equity loss	$	(2	)	$	(13	)	$	(3	)	$	—	$	(18	)
Depreciation, depletion, and amortization		100			131			56			40		327
Income taxes		17			(16	)		32			91		124
ATOI		67			8			71			192		338

	Alumina			Primary Metals			Global Rolled Products			Engineered Products and Solutions		Total
Nine months ended September 30, 2014
Sales:
Third-party sales	$	2,492		$	4,948		$	5,463		$	4,440	$	17,343
Intersegment sales		1,472			2,182			139			—		3,793
Total sales	$	3,964		$	7,130		$	5,602		$	4,440	$	21,136
Profit and loss:
Equity loss	$	(19	)	$	(45	)	$	(19	)	$	—	$	(83	)
Depreciation, depletion, and amortization		297			377			178			121		973
Income taxes		78			114			99			293		584
ATOI		192			327			241			602		1,362
Nine months ended September 30, 2013
Sales:
Third-party sales	$	2,494		$	4,978		$	5,461		$	4,328	$	17,261
Intersegment sales		1,689			2,095			141			—		3,925
Total sales	$	4,183		$	7,073		$	5,602		$	4,328	$	21,186
Profit and loss:
Equity loss	$	(2	)	$	(29	)	$	(9	)	$	—	$	(40	)
Depreciation, depletion, and amortization		324			398			168			119		1,009
Income taxes		45			(40	)		103			269		377
ATOI		189			15			231			558		993

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

	Third quarter ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Total segment ATOI	$	619		$	338		$	1,362		$	993
Unallocated amounts (net of tax):
Impact of LIFO		(18	)		9			(33	)		12
Interest expense		(81	)		(70	)		(228	)		(221	)
Noncontrolling interests		18			(20	)		46			(12	)
Corporate expense		(74	)		(74	)		(211	)		(212	)
Restructuring and other charges		(189	)		(108	)		(587	)		(324	)
Other		(126	)		(51	)		(240	)		(182	)
Consolidated net income attributable to Alcoa	$	149		$	24		$	109		$	54

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.