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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2012	Feb. 11, 2013	Jun. 30, 2012
Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Trading Symbol	AA
Entity Registrant Name	ALCOA INC
Entity Central Index Key	0000004281
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,069,326,205
Entity Public Float			$ 9

Statement of Consolidated Operations - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Sales (Q)	$ 23,700	$ 24,951	$ 21,013
Cost of goods sold (exclusive of expenses below)	20,486	20,480	17,174
Selling, general administrative, and other expenses	997	1,027	961
Research and development expenses	197	184	174
Provision for depreciation, depletion, and amortization	1,460	1,479	1,450
Restructuring and other charges (D)	87	281	207
Interest expense (V)	490	524	494
Other (income) expenses, net (O)	(341)	(87)	5
Total costs and expenses	23,376	23,888	20,465
Income from continuing operations before income taxes	324	1,063	548
Provision for income taxes (T)	162	255	148
Income from continuing operations	162	808	400
Loss from discontinued operations (B)		(3)	(8)
Net income	162	805	392
Less: Net (loss) income attributable to noncontrolling interests	(29)	194	138
Net income	191	611	254
Amounts Attributable to Alcoa Common Shareholders:
Income from continuing operations	191	614	262
Loss from discontinued operations		(3)	(8)
Net income	$ 191	$ 611	$ 254
Basic:
Income from continuing operations	$ 0.18	$ 0.58	$ 0.25
Loss from discontinued operations		(0.01)
Net income	0.18	0.57	0.25
Diluted:
Income from continuing operations	0.18	0.55	0.25
Loss from discontinued operations			(0.01)
Net income	$ 0.18	$ 0.55	$ 0.24

Statement of Consolidated Comprehensive (Loss) Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net income (loss)	$ 162	$ 805	$ 392
Other comprehensive (loss) income, net of tax:
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits (W)	(507)	(652)	(144)
Foreign currency translation adjustments (A)	(296)	(708)	775
Unrealized gains on available-for-sale securities (I):
Unrealized holding gains (losses)	2		(5)
Net amount reclassified to earnings			4
Net change in unrealized gains on available-for-sale securities	2		(1)
Unrecognized losses on derivatives (X):
Net change from periodic revaluations	(13)	57	(17)
Net amount reclassified to earnings	(34)	122	138
Net change in unrecognized losses on derivatives	(47)	179	121
Total Other comprehensive (loss) income, net of tax	(848)	(1,181)	751
Comprehensive (loss) income	(686)	(376)	1,143
Alcoa [Member]
Net income (loss)	191	611	254
Other comprehensive (loss) income, net of tax:
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits (W)	(529)	(593)	(140)
Foreign currency translation adjustments (A)	(202)	(543)	441
Unrealized gains on available-for-sale securities (I):
Unrealized holding gains (losses)	2		(5)
Net amount reclassified to earnings			4
Net change in unrealized gains on available-for-sale securities	2		(1)
Unrecognized losses on derivatives (X):
Net change from periodic revaluations	(12)	63	(21)
Net amount reclassified to earnings	(34)	121	138
Net change in unrecognized losses on derivatives	(46)	184	117
Total Other comprehensive (loss) income, net of tax	(775)	(952)	417
Comprehensive (loss) income	(584)	(341)	671
Noncontrolling Interests [Member]
Net income (loss)	(29)	194	138
Other comprehensive (loss) income, net of tax:
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits (W)	22	(59)	(4)
Foreign currency translation adjustments (A)	(94)	(165)	334
Unrecognized losses on derivatives (X):
Net change from periodic revaluations	(1)	(6)	4
Net amount reclassified to earnings		1
Net change in unrecognized losses on derivatives	(1)	(5)	4
Total Other comprehensive (loss) income, net of tax	(73)	(229)	334
Comprehensive (loss) income	$ (102)	$ (35)	$ 472

Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents (X)	$ 1,861	$ 1,939
Receivables from customers, less allowances of $39 in 2012 and $46 in 2011 (U)	1,399	1,571
Other receivables	340	371
Inventories (G)	2,825	2,899
Prepaid expenses and other current assets	1,275	933
Total current assets	7,700	7,713
Properties, plants, and equipment, net (H)	18,947	19,282
Goodwill (E)	5,170	5,157
Investments (I)	1,860	1,626
Deferred income taxes (T)	3,790	3,546
Other noncurrent assets (J)	2,712	2,796
Total Assets	40,179	40,120
Current liabilities:
Short-term borrowings (K & X)	53	62
Commercial paper (K & X)		224
Accounts payable, trade	2,702	2,692
Accrued compensation and retirement costs	1,058	985
Taxes, including income taxes	366	438
Other current liabilities	1,298	1,167
Long-term debt due within one year (K & X)	465	445
Total current liabilities	5,942	6,013
Long-term debt, less amount due within one year (K & X)	8,311	8,640
Accrued pension benefits (W)	3,722	3,261
Accrued other postretirement benefits (W)	2,603	2,583
Other noncurrent liabilities and deferred credits (L)	3,078	2,428
Total liabilities	23,656	22,925
Contingencies and commitments (N)
Alcoa shareholders' equity:
Preferred stock (R)	55	55
Common stock (R)	1,178	1,178
Additional capital	7,560	7,561
Retained earnings	11,689	11,629
Treasury stock, at cost	(3,881)	(3,952)
Accumulated other comprehensive loss	(3,402)	(2,627)
Total Alcoa shareholders' equity	13,199	13,844
Noncontrolling interests (M)	3,324	3,351
Total equity	16,523	17,195
Total Liabilities and Equity	$ 40,179	$ 40,120

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Receivables from customers, allowance	$ 39	$ 46

Statement of Consolidated Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash from Operations
Net income	$ 162	$ 805	$ 392
Adjustments to reconcile net income to cash from operations:
Depreciation, depletion, and amortization	1,462	1,481	1,451
Deferred income taxes (T)	(99)	(181)	(287)
Equity loss (income), net of dividends	2	(26)	(22)
Restructuring and other charges (D)	87	281	207
Net gain from investing activities-asset sales (O)	(321)	(41)	(9)
Loss from discontinued operations (B)		3	8
Stock-based compensation (R)	67	83	84
Excess tax benefits from stock-based payment arrangements	(1)	(6)	(1)
Other	63	53	151
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments:
Decrease (increase) in receivables	104	(115)	(102)
Decrease (increase) in inventories	96	(339)	(217)
Decrease in prepaid expenses and other current assets		74	27
(Decrease) increase in accounts payable, trade	(12)	394	328
(Decrease) in accrued expenses	(83)	(38)	(239)
(Decrease) increase in taxes, including income taxes	(47)	118	503
Pension contributions (W)	(561)	(336)	(113)
(Increase) in noncurrent assets	9	(154)	(83)
Increase in noncurrent liabilities	572	147	183
(Increase) in net assets held for sale (B)			(7)
Cash provided from continuing operations	1,500	2,203	2,254
Cash (used for) provided from discontinued operations	(3)	(10)	7
Cash provided from operations	1,497	2,193	2,261
Financing Activities
Net change in short-term borrowings (original maturities of three months or less) (K)	(10)	(31)	(44)
Net change in commercial paper (K)	(224)	224
Additions to debt (original maturities greater than three months) (K)	972	1,256	1,126
Debt issuance costs (K)	(5)	(17)	(6)
Payments on debt (original maturities greater than three months) (K)	(1,489)	(1,194)	(1,757)
Proceeds from exercise of employee stock options (R)	12	37	13
Excess tax benefits from stock-based payment arrangements	1	6	1
Dividends paid to shareholders	(131)	(131)	(125)
Distributions to noncontrolling interests	(95)	(257)	(256)
Contributions from noncontrolling interests (M)	171	169	162
Acquisitions of noncontrolling interests (P)			(66)
Cash (used for) provided from financing activities	(798)	62	(952)
Investing Activities
Capital expenditures	(1,261)	(1,287)	(1,015)
Acquisitions, net of cash acquired (F & P)		(240)	(72)
Proceeds from the sale of assets and businesses (F)	615	38	4
Additions to investments (I & N)	(300)	(374)	(352)
Sales of investments (I)	31	54	141
Net change in restricted cash (P)	87	(4)	7
Other	69	(39)	15
Cash used for investing activities	(759)	(1,852)	(1,272)
Effect of exchange rate changes on cash and cash equivalents	(18)	(7)	25
Net change in cash and cash equivalents	(78)	396	62
Cash and cash equivalents at beginning of year	1,939	1,543	1,481
Cash and cash equivalents at end of year	$ 1,861	$ 1,939	$ 1,543

Statement of Changes in Consolidated Equity - USD ($) $ in Millions	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Noncontrolling Interests [Member]
Balance at Dec. 31, 2009	$ 15,520	$ 55	$ 1,097	$ 6,608	$ 11,020	$ (4,268)	$ (2,092)	$ 3,100
Net income (loss)	392				254			138
Other comprehensive Income (loss)	751						417	334
Cash dividends declared:
Preferred @ $3.75 per share	(2)				(2)
Common @ $0.12 per share	(123)				(123)
Stock-based compensation (R)	84			84
Common stock issued: compensation plans (R)	(17)			(139)		122
Issuance of common stock (R)	600		44	556
Distributions	(256)							(256)
Contributions (M)	162							162
Purchase of equity from noncontrolling interest (P)	(6)			(2)				(4)
Other	(19)			(20)				1
Balance at Dec. 31, 2010	17,086	55	1,141	7,087	11,149	(4,146)	(1,675)	3,475
Net income (loss)	805				611			194
Other comprehensive Income (loss)	(1,181)						(952)	(229)
Cash dividends declared:
Preferred @ $3.75 per share	(2)				(2)
Common @ $0.12 per share	(129)				(129)
Stock-based compensation (R)	83			83
Common stock issued: compensation plans (R)	22			(172)		194
Issuance of common stock (R)	600		37	563
Distributions	(257)							(257)
Contributions (M)	169							169
Other	(1)							(1)
Balance at Dec. 31, 2011	17,195	55	1,178	7,561	11,629	(3,952)	(2,627)	3,351
Net income (loss)	162				191			(29)
Other comprehensive Income (loss)	(848)						(775)	(73)
Cash dividends declared:
Preferred @ $3.75 per share	(2)				(2)
Common @ $0.12 per share	(129)				(129)
Stock-based compensation (R)	67			67
Common stock issued: compensation plans (R)	3			(68)		71
Distributions	(95)							(95)
Contributions (M)	171							171
Other	(1)							(1)
Balance at Dec. 31, 2012	$ 16,523	$ 55	$ 1,178	$ 7,560	$ 11,689	$ (3,881)	$ (3,402)	$ 3,324

Statement of Changes in Consolidated Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Preferred, dividends per share	$ 3.75	$ 3.75	$ 3.75
Common stock, dividends per share	$ 0.12	$ 0.12	$ 0.12

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies

A. Summary of Significant Accounting Policies

Basis of Presentation. The Consolidated Financial Statements of Alcoa Inc. and subsidiaries (“Alcoa” or the “Company”) are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and require management to make certain judgments, estimates, and assumptions. These may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates upon subsequent resolution of identified matters. Certain amounts in previously issued financial statements were reclassified to conform to the 2012 presentation (see Note B).

Principles of Consolidation. The Consolidated Financial Statements include the accounts of Alcoa and companies in which Alcoa has a controlling interest. Intercompany transactions have been eliminated. The equity method of accounting is used for investments in affiliates and other joint ventures over which Alcoa has significant influence but does not have effective control. Investments in affiliates in which Alcoa cannot exercise significant influence are accounted for on the cost method.

Management also evaluates whether an Alcoa entity or interest is a variable interest entity and whether Alcoa is the primary beneficiary. Consolidation is required if both of these criteria are met. Alcoa does not have any variable interest entities requiring consolidation.

Related Party Transactions. Alcoa buys products from and sells products to various related companies, consisting of entities in which Alcoa retains a 50% or less equity interest, at negotiated arms-length prices between the two parties. These transactions were not material to the financial position or results of operations of Alcoa for all periods presented.

Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less.

Inventory Valuation. Inventories are carried at the lower of cost or market, with cost for a substantial portion of U.S. and Canadian inventories determined under the last-in, first-out (LIFO) method. The cost of other inventories is principally determined under the average-cost method.

Properties, Plants, and Equipment. Properties, plants, and equipment are recorded at cost. Depreciation is recorded principally on the straight-line method at rates based on the estimated useful lives of the assets. For greenfield assets, which refer to the construction of new assets on undeveloped land, the units of production method is used to record depreciation. These assets require a significant period (generally greater than one-year) to ramp-up to full production capacity. As a result, the units of production method is deemed a more systematic and rational method for recognizing depreciation on these assets. Depreciation is recorded on temporarily idled facilities until such time management approves a permanent shutdown. The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years):


Segment	Structures		Machinery and equipment
Alumina:
Alumina refining		30		25
Bauxite mining		33		19
Primary Metals:
Aluminum smelting		35		21
Power generation		34		24
Global Rolled Products		32		21
Engineered Products and Solutions		29		18

Gains or losses from the sale of assets are generally recorded in other income or expenses (see policy that follows for assets classified as held for sale and discontinued operations). Repairs and maintenance are charged to expense as incurred. Interest related to the construction of qualifying assets is capitalized as part of the construction costs.

Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable. Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the operations related to the assets (asset group) to their carrying amount. An impairment loss would be recognized when the carrying amount of the assets (asset group) exceeds the estimated undiscounted net cash flows. The amount of the impairment loss to be recorded is calculated as the excess of the carrying value of the assets (asset group) over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow model (DCF model). The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of assets also require significant judgments.

Mineral Rights. Alcoa recognizes mineral rights upon specific acquisitions of land that include such underlying rights, primarily in Jamaica. This land is purchased for the sole purpose of mining bauxite. The underlying bauxite reserves are known at the time of acquisition based on associated drilling and analysis and are considered to be proven reserves. The acquisition cost of the land and mineral rights are amortized as the bauxite is produced based on the level of minable tons determined at the time of purchase. Mineral rights are included in Properties, plants, and equipment on the accompanying Consolidated Balance Sheet.

Deferred Mining Costs. Alcoa recognizes deferred mining costs during the development stage of a mine life cycle. Such costs include the construction of access and haul roads, detailed drilling and geological analysis to further define the grade and quality of the known bauxite, and overburden removal costs. These costs relate to sections of the related mines where Alcoa is either currently extracting bauxite or is preparing for production in the near term. These sections are outlined and planned incrementally and generally are mined over periods ranging from one to five years, depending on mine specifics. The amount of geological drilling and testing necessary to determine the economic viability of the bauxite deposit being mined is such that the reserves are considered to be proven, and the mining costs are amortized based on this level of reserves. Deferred mining costs are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet.

Goodwill and Other Intangible Assets. Goodwill is not amortized; instead, it is reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell a business. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods, among others. The fair value that could be realized in an actual transaction may differ from that used to evaluate the impairment of goodwill.

Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Alcoa has nine reporting units, of which five are included in the Engineered Products and Solutions segment. The remaining four reporting units are the Alumina segment, the Primary Metals segment, the Global Rolled Products segment, and the soft alloy extrusions business in Brazil, which is included in Corporate. Almost 90% of Alcoa’s total goodwill is allocated to three reporting units as follows: Alcoa Fastening Systems (AFS) ($1,160) and Alcoa Power and Propulsion (APP) ($1,628) businesses, both of which are included in the Engineered Products and Solutions segment, and Primary Metals ($1,748). These amounts include an allocation of Corporate’s goodwill.

In September 2011, the Financial Accounting Standards Board issued new accounting guidance for testing goodwill for impairment (see Recently Adopted Accounting Guidance section of Note A below). The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the existing two-step quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform the qualitative assessment or proceeds directly to the two-step quantitative impairment test.

In the 2011 fourth quarter, in conjunction with management’s annual review of goodwill, Alcoa early adopted the new guidance. As a result, Alcoa instituted a policy for its annual review of goodwill to perform the qualitative assessment for all reporting units not subjected directly to the two-step quantitative impairment test. Management will proceed directly to the two-step quantitative impairment test for a minimum of three reporting units (based on facts and circumstances) during each annual review of goodwill. This policy will result in each of the nine reporting units being subjected to the two-step quantitative impairment test at least once during every three-year period.

Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators above). These factors are then classified by the type of impact they would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions. Additionally, an assessment of the level of impact that a particular factor would have on the estimated fair value is determined using high, medium, and low weighting. Furthermore, management considers the results of the most recent two-step quantitative impairment test completed for a reporting unit (this would be 2011 and 2010 in which the estimated fair values of three and nine reporting units, respectively, were substantially in excess of their carrying values) and compares the weighted average cost of capital (WACC) between the current and prior years for each reporting unit.

During the 2012 annual review of goodwill, management performed the qualitative assessment for six reporting units. Management concluded that it was not more likely than not that the estimated fair values of the six reporting units were less than their carrying values. As such, no further analysis was required.

Under the two-step quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. Alcoa uses a DCF model to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including markets and market share, sales volumes and prices, costs to produce, tax rates, capital spending, discount rate, and working capital changes. Most of these assumptions vary significantly among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years. The betas used in calculating the individual reporting units’ WACC rate are estimated for each business with the assistance of valuation experts.

In the event the estimated fair value of a reporting unit per the DCF model is less than the carrying value, additional analysis would be required. The additional analysis would compare the carrying amount of the reporting unit’s goodwill with the implied fair value of that goodwill, which may involve the use of valuation experts. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the fair value amounts assigned to all of the assets and liabilities of that unit as if the reporting unit was acquired in a business combination and the fair value of the reporting unit represented the purchase price. If the carrying value of goodwill exceeds its implied fair value, an impairment loss equal to such excess would be recognized, which could significantly and adversely impact reported results of operations and shareholders’ equity.

During the 2012 annual review of goodwill, management proceeded directly to the two-step quantitative impairment test for three reporting units as follows: the Primary Metals segment, the Alumina segment, and the Global Rolled Products segment. For Global Rolled Products, the estimated fair value exceeded carrying value by more than 150%, resulting in no impairment. For Primary Metals and Alumina, the estimated fair values exceeded their carrying values by 9.2% and 7.4%, respectively, resulting in no impairment. These two reporting units have goodwill of $1,748 and $171, respectively. In developing the fair value of these reporting units, the Company estimates future cash flows using London Metal Exchange (LME) forward curve pricing and operating cost assumptions management believes are reasonable based on expected and historical performance. The following could have a negative impact on the estimated fair values of Primary Metals and Alumina: a significant, protracted decrease in LME and alumina prices; decrease in long-term profitability; decrease in the long-term demand for aluminum; substantial reductions in Alcoa’s end markets and volume assumptions; and an increase in discount rates.

As part of the 2012 annual review of goodwill, management considered the market capitalization of Alcoa’s common stock in relation to the Company’s total shareholders’ equity. At December 31, 2012, the market capitalization of Alcoa’s common stock was $9,263. While this amount is less than the Company’s total shareholders’ equity at December 31, 2012, the estimated aggregate fair value of Alcoa’s reporting units was substantially in excess of the aforementioned market capitalization amount. In management’s judgment, the main reason for the difference between Alcoa’s market capitalization and total shareholders’ equity at December 31, 2012 is significantly lower commodity prices for aluminum. Management believes these commodity prices are being adversely impacted by turmoil in the macroeconomic environment, which do not necessarily reflect aluminum industry fundamentals. For example, there was, and continues to be, significant uncertainty of the sovereign debt of many European countries. This uncertainty has affected the liquidity of many companies that either operate or are located in Europe, although, Alcoa has not been impacted significantly. Additionally, during 2012, there was great concern over what was labeled the fiscal cliff in the U.S. and a slowdown in the growth of China. The combination of this economic uncertainty and the continuing decline in commodity prices caused the price of Alcoa’s common stock to remain depressed. As a result, management believes the quoted market price of Alcoa’s common stock does not fully reflect the underlying value of the future aggregate cash flows of the Company’s reporting units. Accordingly, management does not believe that the comparison of Alcoa’s market capitalization and total shareholders’ equity as of December 31, 2012 is an indication that goodwill is impaired.

Intangible assets with indefinite useful lives are not amortized while intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years):


Segment	Software		Other intangible assets
Alumina		10		-
Primary Metals		9		36
Global Rolled Products		10		13
Engineered Products and Solutions		9		19

Equity Investments. Alcoa invests in a number of privately-held companies, primarily through joint ventures and consortia, which are accounted for on the equity method. The equity method is applied in situations where Alcoa has the ability to exercise significant influence, but not control, over the investee. Management reviews equity investments for impairment whenever certain indicators are present suggesting that the carrying value of an investment is not recoverable. This analysis requires a significant amount of judgment from management to identify events or circumstances indicating that an equity investment is impaired. The following items are examples of impairment indicators: significant, sustained declines in an investee’s revenue, earnings, and cash flow trends; adverse market conditions of the investee’s industry or geographic area; the investee’s ability to continue operations measured by several items, including liquidity; and other factors. Once an impairment indicator is identified, management uses considerable judgment to determine if the impairment is other than temporary, in which case the equity investment is written down to its estimated fair value. An impairment that is other than temporary could significantly and adversely impact reported results of operations.

Revenue Recognition. Alcoa recognizes revenue when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel).

Alcoa periodically enters into long-term supply contracts with alumina and aluminum customers and receives advance payments for product to be delivered in future periods. These advance payments are recorded as deferred revenue, and revenue is recognized as shipments are made and title, ownership, and risk of loss pass to the customer during the term of the contracts. Deferred revenue is included in Other current liabilities and Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet.

Environmental Matters. Expenditures for current operations are expensed or capitalized, as appropriate. Expenditures relating to existing conditions caused by past operations, which will not contribute to future revenues, are expensed. Liabilities are recorded when remediation costs are probable and can be reasonably estimated. The liability may include costs such as site investigations, consultant fees, feasibility studies, outside contractors, and monitoring expenses. Estimates are generally not discounted or reduced by potential claims for recovery. Claims for recovery are recognized as agreements are reached with third parties. The estimates also include costs related to other potentially responsible parties to the extent that Alcoa has reason to believe such parties will not fully pay their proportionate share. The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations.

Litigation Matters. For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a matter is deemed to be probable and the loss is reasonably estimable. Management determines the likelihood of an unfavorable outcome based on many factors such as the nature of the matter, available defenses and case strategy, progress of the matter, views and opinions of legal counsel and other advisors, applicability and success of appeals processes, and the outcome of similar historical matters, among others. Once an unfavorable outcome is deemed probable, management weighs the probability of estimated losses, and the most reasonable loss estimate is recorded. If an unfavorable outcome of a matter is deemed to be reasonably possible, then the matter is disclosed and no liability is recorded. With respect to unasserted claims or assessments, management must first determine that the probability that an assertion will be made is likely, then, a determination as to the likelihood of an unfavorable outcome and the ability to reasonably estimate the potential loss is made. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss.

Asset Retirement Obligations. Alcoa recognizes asset retirement obligations (AROs) related to legal obligations associated with the normal operation of Alcoa’s bauxite mining, alumina refining, and aluminum smelting facilities. These AROs consist primarily of costs associated with spent pot lining disposal, closure of bauxite residue areas, mine reclamation, and landfill closure. Alcoa also recognizes AROs for any significant lease restoration obligation, if required by a lease agreement, and for the disposal of regulated waste materials related to the demolition of certain power facilities. The fair values of these AROs are recorded on a discounted basis, at the time the obligation is incurred, and accreted over time for the change in present value. Additionally, Alcoa capitalizes asset retirement costs by increasing the carrying amount of the related long-lived assets and depreciating these assets over their remaining useful life.

Certain conditional asset retirement obligations (CAROs) related to alumina refineries, aluminum smelters, and fabrication facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. A CARO is a legal obligation to perform an asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may or may not be within Alcoa’s control. Such uncertainties exist as a result of the perpetual nature of the structures, maintenance and upgrade programs, and other factors. At the date a reasonable estimate of the ultimate settlement date can be made, Alcoa would record an ARO for the removal, treatment, transportation, storage, and (or) disposal of various regulated assets and hazardous materials such as asbestos, underground and aboveground storage tanks, polychlorinated biphenyls (PCBs), various process residuals, solid wastes, electronic equipment waste, and various other materials. Such amounts may be material to the Consolidated Financial Statements in the period in which they are recorded.

Income Taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid, and result from differences between the financial and tax bases of Alcoa’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted.

Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitation has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized.

Stock-Based Compensation. Alcoa recognizes compensation expense for employee equity grants using the non-substantive vesting period approach, in which the expense (net of estimated forfeitures) is recognized ratably over the requisite service period based on the grant date fair value. The fair value of new stock options is estimated on the date of grant using a lattice-pricing model. Determining the fair value of stock options at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield, volatility, annual forfeiture rate, and exercise behavior. These assumptions may differ significantly between grant dates because of changes in the actual results of these inputs that occur over time.

Most plan participants can choose whether to receive their award in the form of stock options, stock awards, or a combination of both. This choice is made before the grant is issued and is irrevocable.

Derivatives and Hedging. Derivatives are held for purposes other than trading and are part of a formally documented risk management program. For derivatives designated as fair value hedges, Alcoa measures hedge effectiveness by formally assessing, at least quarterly, the historical high correlation of changes in the fair value of the hedged item and the derivative hedging instrument. For derivatives designated as cash flow hedges, Alcoa measures hedge effectiveness by formally assessing, at least quarterly, the probable high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The ineffective portions of both types of hedges are recorded in sales or other income or expense in the current period. If the hedging relationship ceases to be highly effective or it becomes probable that an expected transaction will no longer occur, future gains or losses on the derivative instrument are recorded in other income or expense.

Alcoa accounts for interest rate swaps related to its existing long-term debt and hedges of firm customer commitments for aluminum as fair value hedges. As a result, the fair values of the derivatives and changes in the fair values of the underlying hedged items are reported in other current and noncurrent assets and liabilities in the Consolidated Balance Sheet. Changes in the fair values of these derivatives and underlying hedged items generally offset and are recorded each period in sales or interest expense, consistent with the underlying hedged item.

Alcoa accounts for hedges of foreign currency exposures and certain forecasted transactions as cash flow hedges. The fair values of the derivatives are recorded in other current and noncurrent assets and liabilities in the Consolidated Balance Sheet. The effective portions of the changes in the fair values of these derivatives are recorded in other comprehensive income and are reclassified to sales, cost of goods sold, or other income or expense in the period in which earnings are impacted by the hedged items or in the period that the transaction no longer qualifies as a cash flow hedge. These contracts cover the same periods as known or expected exposures, generally not exceeding five years.

If no hedging relationship is designated, the derivative is marked to market through earnings.

Cash flows from derivatives are recognized in the Statement of Consolidated Cash Flows in a manner consistent with the underlying transactions.

Foreign Currency. The local currency is the functional currency for Alcoa’s significant operations outside the U.S., except for certain operations in Canada, Russia and Iceland, where the U.S. dollar is used as the functional currency. The determination of the functional currency for Alcoa’s operations is made based on the appropriate economic and management indicators.

Effective January 1, 2010, the functional currency of a subsidiary located in Brazil (that is part of Alcoa World Alumina and Chemicals, which is 60% owned by Alcoa and 40% owned by Alumina Limited) was changed from the U.S. dollar to the Brazilian real (BRL). This change was made as a result of changes in the operations of the business following the completion of the São Luís refinery expansion and Juruti bauxite mine development. In connection with this change, on January 1, 2010, an adjustment of $309 was recorded as an increase to the net nonmonetary assets of this subsidiary (primarily properties, plants, and equipment) with a corresponding adjustment to the foreign currency translation component of Accumulated other comprehensive loss. The functional currency of all of Alcoa’s Brazilian operations is now BRL.

Acquisitions. Alcoa’s business acquisitions are accounted for using the acquisition method. The purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. For all acquisitions, operating results are included in the Statement of Consolidated Operations since the dates of the acquisitions.

Discontinued Operations and Assets Held For Sale. For those businesses where management has committed to a plan to divest, each business is valued at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, an impairment loss is recognized. Fair value is estimated using accepted valuation techniques such as a DCF model, valuations performed by third parties, earnings multiples, or indicative bids, when available. A number of significant estimates and assumptions are involved in the application of these techniques, including the forecasting of markets and market share, sales volumes and prices, costs and expenses, and multiple other factors. Management considers historical experience and all available information at the time the estimates are made; however, the fair value that is ultimately realized upon the divestiture of a business may differ from the estimated fair value reflected in the Consolidated Financial Statements. Depreciation, depletion, and amortization expense is not recorded on assets of a business to be divested once they are classified as held for sale. Businesses to be divested are classified in the Consolidated Financial Statements as either discontinued operations or held for sale.

For businesses classified as discontinued operations, the balance sheet amounts and results of operations are reclassified from their historical presentation to assets and liabilities of operations held for sale on the Consolidated Balance Sheet and to discontinued operations on the Statement of Consolidated Operations, respectively, for all periods presented. The gains or losses associated with these divested businesses are recorded in discontinued operations on the Statement of Consolidated Operations. The Statement of Consolidated Cash Flows is also reclassified for assets and liabilities of operations held for sale and discontinued operations for all periods presented. Additionally, segment information does not include the assets or operating results of businesses classified as discontinued operations for all periods presented. Management does not expect any continuing involvement with these businesses following their divestiture, and these businesses are expected to be disposed of within one year.

For businesses classified as held for sale that do not qualify for discontinued operations treatment, the balance sheet and cash flow amounts are reclassified from their historical presentation to assets and liabilities of operations held for sale for all periods presented. The results of operations continue to be reported in continuing operations. The gains or losses associated with these divested businesses are recorded in restructuring and other charges on the Statement of Consolidated Operations. The segment information includes the assets and operating results of businesses classified as held for sale for all periods presented. Management expects that Alcoa will have continuing involvement with these businesses following their divestiture, primarily in the form of equity participation, or ongoing aluminum or other significant supply contracts.

Recently Adopted Accounting Guidance.

Fair Value Accounting—On January 1, 2012, Alcoa adopted changes issued by the Financial Accounting Standards Board (FASB) to conform existing guidance regarding fair value measurement and disclosure between GAAP and International Financial Reporting Standards. These changes both clarify the FASB’s intent about the application of existing fair value measurement and disclosure requirements and amend certain principles or requirements for measuring fair value or for disclosing information about fair value measurements. The clarifying changes relate to the application of the highest and best use and valuation premise concepts, measuring the fair value of an instrument classified in a reporting entity’s shareholders’ equity, and disclosure of quantitative information about unobservable inputs used for Level 3 fair value measurements. The amendments relate to measuring the fair value of financial instruments that are managed within a portfolio; application of premiums and discounts in a fair value measurement; and additional disclosures concerning the valuation processes used and sensitivity of the fair value measurement to changes in unobservable inputs for those items categorized as Level 3, a reporting entity’s use of a nonfinancial asset in a way that differs from the asset’s highest and best use, and the categorization by level in the fair value hierarchy for items required to be measured at fair value for disclosure purposes only. Other than the additional disclosure requirements (see Note X), the adoption of these changes had no impact on the Consolidated Financial Statements.

On January 1, 2011, Alcoa adopted changes issued by the FASB to disclosure requirements for fair value measurements. Specifically, the changes require a reporting entity to disclose, in the reconciliation of fair value measurements using significant unobservable inputs (Level 3), separate information about purchases, sales, issuances, and settlements (that is, on a gross basis rather than as one net number). These changes were applied to the disclosures in Note W and the Derivatives section of Note X to the Consolidated Financial Statements.

Effective January 1, 2010, Alcoa adopted changes issued by the FASB on January 21, 2010 to disclosure requirements for fair value measurements. Specifically, the changes require a reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers. The changes also clarify existing disclosure requirements related to how assets and liabilities should be grouped by class and valuation techniques used for recurring and nonrecurring fair value measurements. The adoption of these changes had no impact on the Consolidated Financial Statements.

Business Combinations and Consolidation Accounting—On January 1, 2011, Alcoa adopted changes issued by the FASB to the disclosure of pro forma information for business combinations. These changes clarify that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. Also, the existing supplemental pro forma disclosures were expanded to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The adoption of these changes had no impact on the Consolidated Financial Statements.

On January 1, 2010, Alcoa adopted changes issued by the FASB to accounting for variable interest entities. These changes require an enterprise to perform an analysis to determine whether the enterprise’s variable interest or interests give it a controlling financial interest in a variable interest entity; to require ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity; to eliminate the solely quantitative approach previously required for determining the primary beneficiary of a variable interest entity; to add an additional reconsideration event for determining whether an entity is a variable interest entity when any changes in facts and circumstances occur such that holders of the equity investment at risk, as a group, lose the power from voting rights or similar rights of those investments to direct the activities of the entity that most significantly impact the entity’s economic performance; and to require enhanced disclosures that will provide users of financial statements with more transparent information about an enterprise’s involvement in a variable interest entity. The adoption of these changes had no impact on the Consolidated Financial Statements.

Effective January 1, 2010, Alcoa adopted changes issued by the FASB on January 6, 2010 for a scope clarification to the FASB’s previously-issued guidance (in December 2007) on accounting for noncontrolling interests in consolidated financial statements. These changes clarify the accounting and reporting guidance for noncontrolling interests and changes in ownership interests of a consolidated subsidiary. An entity is required to deconsolidate a subsidiary when the entity ceases to have a controlling financial interest in the subsidiary. Upon deconsolidation of a subsidiary, an entity recognizes a gain or loss on the transaction and measures any retained investment in the subsidiary at fair value. The gain or loss includes any gain or loss associated with the difference between the fair value of the retained investment in the subsidiary and its carrying amount at the date the subsidiary is deconsolidated. In contrast, an entity is required to account for a decrease in its ownership interest of a subsidiary that does not result in a change of control of the subsidiary as an equity transaction. The adoption of these changes had no impact on the Consolidated Financial Statements.

Goodwill and Other Intangible Assets—On January 1, 2011, Alcoa adopted changes issued by the FASB to the testing of goodwill for impairment. These changes require an entity to perform all steps in the test for a reporting unit whose carrying value is zero or negative if it is more likely than not (more than 50%) that a goodwill impairment exists based on qualitative factors. This will result in the elimination of an entity’s ability to assert that such a reporting unit’s goodwill is not impaired and additional testing is not necessary despite the existence of qualitative factors that indicate otherwise. Based on the then most recent impairment review of Alcoa’s goodwill (2011 fourth quarter), the adoption of these changes had no impact on the Consolidated Financial Statements.

In September 2011, the FASB issued changes to the testing of goodwill for impairment. These changes provide an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the fair value of a reporting unit is less than its carrying amount. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the existing two-step quantitative impairment test, otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. Under either option, the ultimate outcome of the goodwill impairment test should be the same. These changes are required to become effective for Alcoa for any goodwill impairment test performed on January 1, 2012 or later; however, early adoption is permitted. Alcoa elected to early adopt these changes in conjunction with management’s annual review of goodwill in the fourth quarter of 2011 (see the Goodwill and Other Intangible Assets section of Note A above). The adoption of these changes had no impact on the Consolidated Financial Statements.

Other—On January 1, 2012, Alcoa adopted changes issued by the FASB to the presentation of comprehensive income. These changes give an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements; the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity was eliminated. The items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income were not changed. Additionally, no changes were made to the calculation and presentation of earnings per share. Management elected to present the two-statement option. Other than the change in presentation, the adoption of these changes had no impact on the Consolidated Financial Statements.

On January 1, 2011, Alcoa adopted changes issued by the FASB to revenue recognition for multiple-deliverable arrangements. These changes require separation of consideration received in such arrangements by establishing a selling price hierarchy (not the same as fair value) for determining the selling price of a deliverable, which will be based on available information in the following order: vendor-specific objective evidence, third-party evidence, or estimated selling price; eliminate the residual method of allocation and require that the consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method, which allocates any discount in the arrangement to each deliverable on the basis of each deliverable’s selling price; require that a vendor determine its best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis; and expand the disclosures related to multiple-deliverable revenue arrangements. The adoption of these changes had no impact on the Consolidated Financial Statements, as Alcoa does not currently have any such arrangements with its customers.

On January 1, 2011, Alcoa adopted changes issued by the FASB to the classification of certain employee share-based payment awards. These changes clarify that there is not an indication of a condition that is other than market, performance, or service if an employee share-based payment award’s exercise price is denominated in the currency of a market in which a substantial portion of the entity’s equity securities trade and differs from the functional currency of the employer entity or payroll currency of the employee. An employee share-based payment award is required to be classified as a liability if the award does not contain a market, performance, or service condition. Prior to this guidance, the difference between the currency denomination of an employee share-based payment award’s exercise price and the functional currency of the employer entity or payroll currency of the employee was not a factor considered by management when determining the proper classification of a share-based payment award. The adoption of these changes had no impact on the Consolidated Financial Statements.

On January 1, 2010, Alcoa adopted changes issued by the FASB to accounting for transfers of financial assets. These changes remove the concept of a qualifying special-purpose entity and remove the exception from the application of variable interest accounting to variable interest entities that are qualifying special-purpose entities; limit the circumstances in which a transferor derecognizes a portion or component of a financial asset; define a participating interest; require a transferor to recognize and initially measure at fair value all assets obtained and liabilities incurred as a result of a transfer accounted for as a sale; and require enhanced disclosure. The adoption of these changes had no impact on the Consolidated Financial Statements. In March 2010, management terminated the Company’s accounts receivable securitization program; had this program not been terminated, the adoption of these changes would have resulted in a $250 increase to both Receivables from customers and Short-term borrowings on the accompanying Consolidated Balance Sheet.

Effective January 1, 2010, Alcoa adopted changes issued by the FASB on February 24, 2010 to accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued, otherwise known as “subsequent events.” Specifically, these changes clarify that an entity that is required to file or furnish its financial statements with the Securities and Exchange Commission is not required to disclose the date through which subsequent events have been evaluated, as had been previously required by changes issued by the FASB in May 2009. Other than the elimination of disclosing the date through which management has performed its evaluation for subsequent events (see Note Y), the adoption of these changes had no impact on the Consolidated Financial Statements.

On July 1, 2010, Alcoa adopted changes to existing accounting requirements for embedded credit derivatives. Specifically, the changes clarify the scope exception regarding when embedded credit derivative features are not considered embedded derivatives subject to potential bifurcation and separate accounting. The adoption of these changes had no impact on the Consolidated Financial Statements.

Recently Issued Accounting Guidance. In July 2012, the FASB issued changes to the testing of indefinite-lived intangible assets for impairment, similar to the goodwill changes issued in September 2011. These changes provide an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the fair value of an indefinite-lived intangible asset is less than its carrying amount. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the existing two-step quantitative impairment test, otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. These changes become effective for Alcoa for any indefinite-lived intangible asset impairment test performed on January 1, 2013 or later, although early adoption is permitted. Upon adoption of these changes, management plans to proceed directly to the two-step quantitative test for Alcoa’s indefinite-lived intangible assets. As these changes should not affect the outcome of the impairment analysis of an indefinite-lived intangible asset, management has determined these changes will not have an impact on the Consolidated Financial Statements.

In December 2011, the FASB issued changes to the disclosure of offsetting assets and liabilities. These changes require an entity to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The enhanced disclosures will enable users of an entity’s financial statements to understand and evaluate the effect or potential effect of master netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. These changes become effective for Alcoa on January 1, 2013. Other than the additional disclosure requirements, management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements.

Discontinued Operations and Assets Held for Sale

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Assets Held for Sale

B. Discontinued Operations and Assets Held for Sale

For the years ended December 31, 2012, 2011, and 2010, there were no active businesses classified as discontinued operations in the accompanying Statement of Consolidated Operations.

The following table details selected financial information of discontinued operations:


	2012		2011			2010
Sales	$	-	$	-		$	-
Loss from operations before income taxes	$	-	$	(4	)	$	(11	)
Benefit for income taxes		-		1			3
Loss from discontinued operations	$	-	$	(3	)	$	(8	)

In 2011, 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, a net gain of $2 ($3 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, and a $2 ($2 pretax) reversal of the gain recognized in 2006 related to the sale of the home exteriors business for an adjustment to an outstanding obligation, which was part of the terms of sale. In 2010, 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 electronics portion of the EES business (working capital components) and the Hawesville, KY automotive casting facility. Additionally, assets of the Tapoco Hydroelectric Project (“Tapoco”), along with an allocation of goodwill from the Primary Metals reporting unit, were classified as held for sale as of December 31, 2011.

In June 2012, management committed to a plan to sell the assets, consisting of properties, plants, and equipment and intangible assets, of Tapoco. As a result, these assets were reclassified to held for sale. The Consolidated Financial Statements for all prior periods presented were reclassified to reflect this change. In November 2012, Alcoa completed the sale of Tapoco (see Note F).

The major classes of assets and liabilities of operations held for sale were as follows:


December 31,	2012		2011
Assets:
Properties, plants, and equipment	$	2	$	136
Goodwill		-		94
Other assets		-		13
Assets held for sale*	$	2	$	243
Liabilities:
Accounts payable, trade	$	-	$	1
Accrued expenses		1		5
Liabilities of operations held for sale*	$	1	$	6

*	Assets held for sale were included in Other noncurrent assets and Liabilities of operations held for sale were included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Asset Retirement Obligations

12 Months Ended

Dec. 31, 2012

Asset Retirement Obligations

C. Asset Retirement Obligations

Alcoa has recorded AROs related to legal obligations associated with the normal operations of bauxite mining, alumina refining, and aluminum smelting facilities. These AROs consist primarily of costs associated with spent pot lining disposal, closure of bauxite residue areas, mine reclamation, and landfill closure. Alcoa also recognizes AROs for any significant lease restoration obligation, if required by a lease agreement, and for the disposal of regulated waste materials related to the demolition of certain power facilities.

In addition to AROs, certain CAROs related to alumina refineries, aluminum smelters, and fabrication facilities have not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement date. Such uncertainties exist as a result of the perpetual nature of the structures, maintenance and upgrade programs, and other factors. At the date a reasonable estimate of the ultimate settlement date can be made (e.g., planned demolition), Alcoa would record an ARO for the removal, treatment, transportation, storage, and (or) disposal of various regulated assets and hazardous materials such as asbestos, underground and aboveground storage tanks, PCBs, various process residuals, solid wastes, electronic equipment waste, and various other materials. If Alcoa was required to demolish all such structures immediately, the estimated CARO as of December 31, 2012 ranges from less than $1 to $52 per structure (132 structures) in today’s dollars.

The following table details the carrying value of recorded AROs by major category (of which $75 and $76 was classified as a current liability as of December 31, 2012 and 2011, respectively):


December 31,	2012		2011
Spent pot lining disposal	$	182	$	187
Closure of bauxite residue areas		190		173
Mine reclamation		189		164
Demolition*		28		34
Landfill closure		17		17
Other		4		4
	$	610	$	579

*	In 2011, AROs were recorded as a result of management’s decision to permanently shut down and demolish certain structures, each of which was previously temporarily idled for different reasons (see Note D).

The following table details the changes in the total carrying value of recorded AROs:


December 31,	2012			2011
Balance at beginning of year	$	579		$	534
Accretion expense		25			22
Payments		(81	)		(86	)
Liabilities incurred		80			115
Foreign currency translation and other		7			(6	)
Balance at end of year	$	610		$	579

Restructuring and Other Charges

12 Months Ended

Dec. 31, 2012

Restructuring and Other Charges

D. Restructuring and Other Charges

Restructuring and other charges for each year in the three-year period ended December 31, 2012 were comprised of the following:


	2012			2011			2010
Asset impairments	$	40		$	150		$	139
Layoff costs		47			93			43
Other exit costs		21			61			58
Reversals of previously recorded layoff and other exit costs		(21	)		(23	)		(33	)
Restructuring and other charges	$	87		$	281		$	207

Layoff costs were recorded based on approved detailed action plans submitted by the operating locations that specified positions to be eliminated, benefits to be paid under existing severance plans, union contracts or statutory requirements, and the expected timetable for completion of the plans.

2012 Actions. In 2012, Alcoa recorded Restructuring and other charges of $87 ($73 after-tax and noncontrolling interests), which were comprised of the following components: $47 ($29 after-tax and noncontrolling interests) for the layoff of approximately 800 employees (390 in the Engineered Products and Solutions segment, 250 in the Primary Metals segment, 85 in the Alumina segment, and 75 in Corporate), including $10 ($7 after-tax) for the layoff of an additional 170 employees related to the previously reported smelter curtailments in Spain (see 2011 Actions below); $30 ($30 after-tax) in asset impairments and $6 ($6 after-tax) for lease and contract termination costs due to a decision to exit the lithographic sheet business in Bohai, China; $11 ($11 after-tax) in costs to idle the Portovesme smelter (see 2011 Actions below); $10 ($8 after-tax) in other asset impairments; a net charge of $4 ($4 after-tax and noncontrolling interests) for other miscellaneous items; and $21 ($15 after-tax and noncontrolling interests) for the reversal of a number of layoff reserves related to prior periods, including $10 ($7 after-tax) related to the smelters in Spain. The reversal related to the smelters in Spain is due to lower than expected costs based on agreements with employee representatives and the government, as well as a reduction of 55 in the number of layoffs due to the anticipation of the restart of a portion of the previously curtailed capacity based on an agreement with the Spanish government that will provide interruptibility rights (i.e. compensation for power interruptions when grids are overloaded) to the smelters during 2013. A portion of this reversal relates to layoff costs recorded at the end of 2011 (see 2011 Actions below) and a portion of this reversal relates to layoff costs recorded during 2012 (see above).

As of December 31, 2012, approximately 270 of the 800 employees were separated. The remaining separations for the 2012 restructuring programs are expected to be completed by the end of 2013. In 2012, cash payments of $16 were made against layoff reserves related to the 2012 restructuring programs.

2011 Actions. In 2011, Alcoa recorded Restructuring and other charges of $281 ($181 after-tax and noncontrolling interests), which were comprised of the following components: $127 ($82 after-tax) in asset impairments and $36 ($23 after-tax) in other exit costs related to the permanent shutdown and planned demolition of certain idled structures at two U.S. locations (see below); $93 ($68 after-tax and noncontrolling interests) for the layoff of approximately 1,600 employees (820 in the Primary Metals segment, 470 in the Global Rolled Products segment, 160 in the Alumina segment, 20 in the Engineered Products and Solutions segment, and 130 in Corporate), including the effects of planned smelter curtailments (see below); $23 ($12 after-tax and noncontrolling interests) for other asset impairments, including the write-off of the carrying value of an idled structure in Australia that processed spent pot lining and adjustments to the fair value of the one remaining foil location while it was classified as held for sale due to foreign currency movements; $20 ($8 after-tax and noncontrolling interests) for a litigation matter related to the former St. Croix location (see the Litigation section of Note N); a net charge of $5 ($4 after-tax) for other small items; and $23 ($16 after-tax) for the reversal of previously recorded layoff reserves due to normal attrition and changes in facts and circumstances, including a change in plans for Alcoa’s aluminum powder facility in Rockdale, TX.

In late 2011, management approved the permanent shutdown and demolition of certain facilities at two U.S. locations, each of which was previously temporarily idled for various reasons. The identified facilities are the smelter located in Alcoa, TN (capacity of 215 kmt-per-year) and two potlines (capacity of 76 kmt-per-year) at the smelter located in Rockdale, TX (remaining capacity of 191 kmt-per-year composed of four potlines). Demolition and remediation activities related to these actions began in 2012 and are expected to be completed in 2015 for the Tennessee smelter and in 2013 for the two potlines at the Rockdale smelter. This decision was made after a comprehensive strategic analysis was performed to determine the best course of action for each facility. Factors leading to this decision were in general focused on achieving sustained competitiveness and included, among others: lack of an economically viable, long-term power solution; changed market fundamentals; cost competitiveness; required future capital investment; and restart costs. The asset impairments of $127 represent the write off of the remaining book value of properties, plants, and equipment related to these facilities. Additionally, remaining inventories, mostly operating supplies, were written down to their net realizable value resulting in a charge of $6 ($4 after-tax), which was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. The other exit costs of $36 represent $18 ($11 after-tax) in environmental remediation (see Note N) and $17 ($11 after-tax) in asset retirement obligations (see Note C), both triggered by the decision to permanently shut down and demolish these structures, and $1 ($1 after-tax) in other related costs.

Also, at the end of 2011, management approved a partial or full curtailment of three European smelters as follows: Portovesme, Italy (150 kmt-per-year); Avilés, Spain (46 kmt out of 93 kmt-per-year); and La Coruña, Spain (44 kmt out of 87 kmt-per-year). These curtailments were completed by the end of 2012. The curtailment of the Portovesme smelter may lead to the permanent closure of the facility, which would result in future charges, while the curtailments at the two smelters in Spain are planned to be temporary. These actions were the result of uncompetitive energy positions, combined with rising material costs and falling aluminum prices (mid-2011 to late 2011). As a result of these decisions, Alcoa recorded costs of $33 ($31 after-tax) for the layoff of approximately 650 employees. As Alcoa engaged in discussions with the respective employee representatives and governments, additional charges were recognized in 2012 (see 2012 Actions above).

As of December 31, 2012, approximately 895 of the 1,475 employees were separated. The total number of employees associated with the 2011 restructuring programs was updated to reflect changes in plans (agreement related to the smelters in Spain – see 2012 Actions above), better than expected operating performance at certain locations, and natural attrition. The remaining separations for the 2011 restructuring programs are expected to be completed by the end of 2013. In 2012 and 2011, cash payments of $23 and $24, respectively, were made against layoff reserves related to the 2011 restructuring programs.

2010 Actions. In 2010, Alcoa recorded Restructuring and other charges of $207 ($130 after-tax and noncontrolling interests), which were comprised of the following components: $127 ($80 after-tax and noncontrolling interests) in asset impairments and $46 ($29 after-tax and noncontrolling interests) in other exit costs related to the permanent shutdown and planned demolition of certain idled structures at five U.S. locations (see below); $43 ($29 after-tax and noncontrolling interests) for the layoff of approximately 875 employees (625 in the Engineered Products and Solutions segment; 75 in the Primary Metals segment; 60 in the Alumina segment; 25 in the Global Rolled Products segment; and 90 in Corporate); $22 ($14 after-tax) in net charges (including $12 ($8 after-tax) for asset impairments) related to divested and to be divested businesses (Automotive Castings, Global Foil, Transportation Products Europe, and Packaging and Consumer) for, among other items, the settlement of a contract with a former customer, foreign currency movements, working capital adjustments, and a tax indemnification; $2 ($2 after-tax and noncontrolling interests) for various other exit costs; and $33 ($24 after-tax and noncontrolling interests) for the reversal of prior periods’ layoff reserves, including a portion of those related to the Portovesme smelter in Italy due to the execution of a new power agreement (see the European Commission Matters section of Note N).

In early 2010, management approved the permanent shutdown and demolition of the following structures, each of which was previously temporarily idled for different reasons: the Eastalco smelter located in Frederick, MD (capacity of 195 kmt-per-year); the smelter located in Badin, NC (capacity of 60 kmt-per-year); an aluminum fluoride plant in Point Comfort, TX; a paste plant and cast house in Massena, NY; and one potline at the smelter in Warrick, IN (capacity of 40 kmt-per-year). This decision was made after a comprehensive strategic analysis was performed to determine the best course of action for each facility. Factors leading to this decision included current market fundamentals, cost competitiveness, other existing idle capacity, required future capital investment, and restart costs, as well as the elimination of ongoing holding costs. The asset impairments of $127 represent the write off of the remaining book value of properties, plants, and equipment related to these facilities. Additionally, remaining inventories, mostly operating supplies, were written down to their net realizable value resulting in a charge of $8 ($5 after-tax and noncontrolling interests), which was recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations. The other exit costs of $46 represent $30 ($19 after-tax and noncontrolling interests) in asset retirement obligations and $14 ($9 after-tax) in environmental remediation, both triggered by the decision to permanently shut down and demolish these structures, and $2 ($1 after-tax and noncontrolling interests) in other related costs.

As of December 31, 2012, the separations associated with 2010 restructuring programs were essentially complete. In 2012 and 2011, cash payments of $3 and $7, respectively, were made against layoff reserves related to 2010 restructuring programs.

Alcoa does not include Restructuring and other charges in the results of its reportable segments. The pretax impact of allocating such charges to segment results would have been as follows:


	2012		2011			2010
Alumina	$	3	$	39		$	12
Primary Metals		20		212			145
Global Rolled Products		43		19			(11	)
Engineered Products and Solutions		13		(3	)		18
Segment total		79		267			164
Corporate		8		14			43
Total restructuring and other charges	$	87	$	281		$	207

Activity and reserve balances for restructuring charges were as follows:


	Layoff costs			Other exit costs			Total
Reserve balances at December 31, 2009	$	160		$	66		$	226
2010:
Cash payments		(93	)		(15	)		(108	)
Restructuring charges		43			53			96
Other*		(57	)		(41	)		(98	)
Reserve balances at December 31, 2010		53			63			116
2011:
Cash payments		(45	)		(9	)		(54	)
Restructuring charges		93			37			130
Other*		(24	)		(34	)		(58	)
Reserve balances at December 31, 2011		77			57			134
2012:
Cash payments		(44	)		(13	)		(57	)
Restructuring charges		47			13			60
Other*		(21	)		(5	)		(26	)
Reserve balances at December 31, 2012	$	59		$	52		$	111

Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In 2011, Other for other exit costs also included a reclassification of the following restructuring charges: $18 in environmental and $17 in asset retirement obligations, as these liabilities are included in Alcoa’s separate reserves for environmental remediation (see Note N) and asset retirement obligations (see Note C), respectively. In 2010, Other for other exit costs also included a reclassification of the following restructuring charges: $30 in asset retirement and $14 in environmental obligations, as these liabilities are included in Alcoa’s separate reserves for asset retirement obligations and environmental remediation, respectively.

The remaining reserves are expected to be paid in cash during 2013, with the exception of approximately $50 to $55, which is expected to be paid over the next several years for lease termination costs, special separation benefit payments, and ongoing site remediation work.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Other Intangible Assets

E. Goodwill and Other Intangible Assets

The following table details the changes in the carrying amount of goodwill:


	Alumina			Primary Metals			Global Rolled Products		Engineered Products and Solutions			Corporate*			Total
Balance at December 31, 2010:
Goodwill	$	12		$	993		$	207	$	2,551		$	1,293		$	5,056
Accumulated impairment losses		-			-			-		(28	)		-			(28	)
		12			993			207		2,523			1,293			5,028
Acquisition of businesses		-			-			-		150			-			150
Translation		(1	)		(2	)		1		(7	)		(12	)		(21	)
Balance at December 31, 2011:
Goodwill		11			991			208		2,694			1,281			5,185
Accumulated impairment losses		-			-			-		(28	)		-			(28	)
		11			991			208		2,666			1,281			5,157
Acquisition of businesses		-			-			-		(1	)		-			(1	)
Translation		(1	)		6			6		12			(9	)		14
Balance at December 31, 2012:
Goodwill		10			997			214		2,705			1,272			5,198
Accumulated impairment losses		-			-			-		(28	)		-			(28	)
	$	10		$	997		$	214	$	2,677		$	1,272		$	5,170

As of December 31, 2012, $1,247 of the amount reflected in Corporate is allocated to each of Alcoa’s four reportable segments ($161 to Alumina, $751 to Primary Metals, $62 to Global Rolled Products, and $273 to Engineered Products and Solutions) included in the table above for purposes of impairment testing (see Note A). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the four reportable segments.

Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows:


December 31, 2012	Gross carrying amount		Accumulated amortization
Computer software	$	907	$	(664	)
Patents and licenses		133		(88	)
Other intangibles		101		(28	)
Total amortizable intangible assets		1,141		(780	)
Indefinite-lived trade names and trademarks		46		-
Total other intangible assets	$	1,187	$	(780	)


December 31, 2011	Gross carrying amount		Accumulated amortization
Computer software	$	902	$	(595	)
Patents and licenses		133		(83	)
Other intangibles*		101		(23	)
Total amortizable intangible assets		1,136		(701	)
Indefinite-lived trade names and trademarks*		46		-
Total other intangible assets	$	1,182	$	(701	)

In 2011, customer relationships were identified as an intangible asset ($31) related to the acquisition of an aerospace fastener business (see Note F) and were preliminarily classified as indefinite-lived in the table above. Upon the completion of the final valuation in 2012, it was determined that the customer relationships should have a finite life. As a result, the 2011 gross carrying amounts for indefinite-lived intangible assets and other intangible assets were revised to conform to the 2012 presentation.

Computer software consists primarily of software costs associated with an enterprise business solution (EBS) within Alcoa to drive common systems among all businesses.

Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2012, 2011, and 2010 was $82, $86, and $86, respectively, and is expected to be in the range of approximately $80 to $90 annually from 2013 to 2017.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2012

Acquisitions and Divestitures

F. Acquisitions and Divestitures

Pro forma results of the Company, assuming all acquisitions described below were made at the beginning of the earliest prior period presented, would not have been materially different from the results reported.

2012 Divestitures. In November 2012, Alcoa completed the sale of its 351-megawatt Tapoco Hydroelectric Project (“Tapoco”) to Brookfield Renewable Energy Partners for $597 in cash. Alcoa recognized a gain of $320 ($173 after-tax) in Other income, net on the accompanying Statement of Consolidated Operations, of which a gain of $426 ($275 after-tax) was reflected in the Primary Metals segment and a loss of $106 ($102 after-tax) was reflected in Corporate. The amount in Corporate represents the write-off of goodwill and capitalized interest related to Tapoco that were not included in the assets of the Primary Metals segment. This transaction is subject to certain post-closing adjustments as defined in the purchase agreement. Tapoco is a four-station hydroelectric project located on the Little Tennessee and Cheoah Rivers in eastern Tennessee and western North Carolina. The transaction included four generating stations and dams, 86 miles of transmission lines, and approximately 14,500 acres of land associated with and surrounding Tapoco. The power generated by Tapoco was primarily consumed by Alcoa’s smelter in Tennessee, which was temporarily idled in 2009 and permanently shut down in 2011. Since 2009, the power generated from Tapoco was sold into the open market. Prior to November 2012, the carrying value of the assets sold, which consisted of properties, plants, and equipment and intangible assets, along with an allocation of goodwill ($94) from the Primary Metals reporting unit, were classified as held for sale (see Note B).

2011 Acquisitions. On March 9, 2011, Alcoa completed an acquisition of the aerospace fastener business of TransDigm Group Inc. for $240 (cash acquired and post-closing adjustments resulted in a net purchase price of $239). This business is a leading global designer, producer, and supplier of highly engineered aircraft components, with three locations (one in the state of California and two in the United Kingdom) that employ a combined 400 people. Specifically, this business provides a wide variety of high-strength, high temperature nickel alloy specialty engine fasteners, airframe bolts, and slotted entry bearings. In 2010, this business generated sales of $61. The assets and liabilities of this business were included in the Engineered Products and Solutions segment as of March 31, 2011; this business’ results of operations were included in this segment beginning March 9, 2011. Based on the preliminary purchase price allocation, goodwill of $154 was recorded for this transaction. In 2012, the purchase price allocation was finalized based on the completion of a valuation study resulting in a $1 reduction of the initial goodwill amount. Approximately $60 of goodwill is deductible for income tax purposes. No other intangible assets were identified as a result of the final valuation. This transaction is no longer subject to post-closing adjustments. This acquisition is part of a strategic plan to accelerate the growth of Alcoa’s fastener business, while adding efficiencies, broadening the existing technology base, and expanding product offerings to better serve customers and increase shareholder value.

2010 Acquisitions. In July 2010, Alcoa completed an acquisition of the commercial building and construction business of a privately-held company, Traco, for $77. This business, located in Cranberry, Pennsylvania, employing 650 people, is a premier manufacturer of windows and doors for the commercial building and construction market and generated sales of approximately $100 in 2009. The assets and liabilities of this business were included in the Engineered Products and Solutions segment as of the end of July 2010 and this business’ results of operations were included in this segment since the beginning of August 2010. Based on the preliminary purchase price allocation, goodwill of $28 was recorded for this transaction. In 2011, the purchase price allocation was finalized based on the completion of a valuation study resulting in a reduction in the initial goodwill amount of $4. All of the $24 in goodwill is deductible for income tax purposes. Also in 2011, Alcoa paid an additional $1 to settle working capital, as provided for in the acquisition agreement, reflecting an adjustment to the purchase price. This transaction is no longer subject to post-closing adjustments.

2010 Divestitures. In April 2010, Alcoa completed the divestiture of the Transportation Products Europe business, the assets and liabilities of which were classified as held for sale in 2008, to two separate buyers. Combined, this business sold for $14, which was included in Proceeds from the sale of assets and businesses on the accompanying Statement of Consolidated Cash Flows; a gain of $5 ($5 after-tax) was recognized in Restructuring and other charges on the accompanying Statement of Consolidated Operations. These two transactions are no longer subject to post-closing adjustments. This business generated sales of $78 in 2009 and, at the time of divestiture, had approximately 360 employees at three locations.

Contingent Payments. In connection with the 2005 acquisition of two fabricating facilities in Russia, Alcoa could be required to make contingent payments of approximately $50 through 2015 based upon the achievement of various financial and operating targets. Any such payment would be reflected as additional goodwill.

Inventories

12 Months Ended

Dec. 31, 2012

Inventories

G. Inventories


December 31,	2012		2011
Finished goods	$	542	$	537
Work-in-process		866		911
Bauxite and alumina		618		656
Purchased raw materials		536		532
Operating supplies		263		263
	$	2,825	$	2,899

At December 31, 2012 and 2011, the total amount of inventories valued on a LIFO basis was 35%. If valued on an average-cost basis, total inventories would have been $770 and $801 higher at December 31, 2012 and 2011, respectively. During the three-year period ended December 31, 2012, reductions in LIFO inventory quantities caused partial liquidations of the lower cost LIFO inventory base. These liquidations resulted in the recognition of income of $1 ($1 after-tax) in 2012, $2 ($1 after-tax) in 2011, and $27 ($17 after-tax) in 2010.

Properties, Plants, and Equipment, Net

12 Months Ended

Dec. 31, 2012

Properties, Plants, and Equipment, Net

H. Properties, Plants, and Equipment, Net


December 31,	2012		2011
Land and land rights, including mines	$	676	$	665
Structures:
Alumina:
Alumina refining		3,319		3,280
Bauxite mining		1,563		1,597
Primary Metals:
Aluminum smelting		4,042		3,950
Power generation		604		667
Global Rolled Products		1,232		1,204
Engineered Products and Solutions		678		648
Other		760		714
		12,198		12,060
Machinery and equipment:
Alumina:
Alumina refining		5,279		5,223
Bauxite mining		650		661
Primary Metals:
Aluminum smelting		8,114		8,266
Power generation		994		1,012
Global Rolled Products		5,174		5,059
Engineered Products and Solutions		2,415		2,252
Other		883		764
		23,509		23,237
		36,383		35,962
Less: accumulated depreciation, depletion, and amortization		19,190		18,326
		17,193		17,636
Construction work-in-progress		1,754		1,646
	$	18,947	$	19,282

As of December 31, 2012 and 2011, the net carrying value of temporarily idled smelting assets was $325 and $166, representing 591 kmt and 353 kmt of idle capacity, respectively. Additionally, the net carrying value of permanently idled smelting assets, representing 291 kmt, was written off at the end of 2011 (see Note D). Also, the net carrying value of temporarily idled refining assets was $68 and $65 as of December 31, 2012 and 2011, representing 1,277 and 1,177 kmt of idle capacity, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Investments

12 Months Ended

Dec. 31, 2012

Investments

I. Investments


December 31,	2012		2011
Equity investments	$	1,782	$	1,524
Other investments		78		102
	$	1,860	$	1,626

Equity Investments. As of December 31, 2012 and 2011, Equity investments included an interest in a project to develop a fully-integrated aluminum complex in Saudi Arabia (see below), hydroelectric power projects in Brazil (see Note N), a smelter operation in Canada (50% of Pechiney Reynolds Quebec, Inc.), bauxite mining interests in Guinea (45% of Halco Mining, Inc.) and Brazil (18.2% of Mineração Rio do Norte S.A.), and a natural gas pipeline in Australia (see Note N). Pechiney Reynolds Quebec, Inc. owns a 50.1% interest in the Bécancour smelter in Quebec, Canada thereby entitling Alcoa to a 25.05% interest in the smelter. Through two wholly-owned Canadian subsidiaries, Alcoa also owns 49.9% of the Bécancour smelter. Halco Mining, Inc. owns 100% of Boké Investment Company, which owns 51% of Compagnie des Bauxites de Guinée. The investments in the bauxite mining interests in Guinea and Brazil and the natural gas pipeline in Australia are held by wholly-owned subsidiaries of Alcoa World Alumina and Chemicals (AWAC), which is owned 60% by Alcoa and 40% by Alumina Limited. In 2012, 2011, and 2010, Alcoa received $101, $100, and $33, respectively, in dividends from its equity investments.

Alcoa and Saudi Arabian Mining Company (known as “Ma’aden”) have a 30-year joint venture shareholders’ agreement (automatic extension for an additional 20 years, unless the parties agree otherwise or unless earlier terminated) setting forth the terms for the development, construction, ownership, and operation of an integrated bauxite mine, alumina refinery, aluminum smelter, and rolling mill, in Saudi Arabia. Specifically, the project to be developed by the joint venture will consist of: (i) a bauxite mine for the extraction of approximately 4,000 kmt of bauxite from the Al Ba’itha bauxite deposit near Quiba in the northern part of Saudi Arabia; (ii) an alumina refinery with an initial capacity of 1,800 kmt; (iii) a primary aluminum smelter with an initial capacity of 740 kmt; and (iv) a rolling mill with an initial capacity of 380 kmt. The refinery, smelter, and rolling mill are being constructed in an industrial area at Ras Al Khair (formerly Ras Az Zawr) on the east coast of Saudi Arabia. The facilities will use critical infrastructure, including power generation derived from reserves of natural gas, as well as port and rail facilities, developed by the government of Saudi Arabia. First production from the smelter occurred in December 2012. For the rolling mill and mine and refinery, first production is expected in 2013 and 2014, respectively.

In 2012, Alcoa and Ma’aden agreed to expand the capabilities of the rolling mill to include a capacity of 100 kmt dedicated to supplying aluminum automotive, building and construction, and foil stock sheet. First production related to the expanded capacity is expected in 2014. This expansion is not expected to result in additional equity investment (see below) due to significant savings anticipated from a change in the project execution strategy of the initial 380 kmt capacity of the rolling mill.

The joint venture is owned 74.9% by Ma’aden and 25.1% by Alcoa and consists of three separate companies as follows: one each for the mine and refinery, the smelter, and the rolling mill. Following the signing of the joint venture shareholders’ agreement, Alcoa paid Ma’aden $80 representing the initial investment in the project. In addition, Alcoa paid $22 and $34 to Ma’aden in 2011 and 2010, respectively, representing Alcoa’s pro rata share of certain agreed upon pre-incorporation costs incurred by Ma’aden before formation of the joint venture.

Ma’aden and Alcoa have put and call options, respectively, whereby Ma’aden can require Alcoa to purchase from Ma’aden, or Alcoa can require Ma’aden to sell to Alcoa, a 14.9% interest in the joint venture at the then fair market value. These options may only be exercised in a six-month window that opens five years after the Commercial Production Date (as defined in the joint venture shareholders’ agreement) and, if exercised, must be exercised for the full 14.9% interest.

The Alcoa affiliate that holds Alcoa’s interests in the smelting company and the rolling mill company is wholly owned by Alcoa, and the Alcoa affiliate that holds Alcoa’s interests in the mining and refining company is wholly owned by AWAC. Except in limited circumstances, Alcoa may not sell, transfer or otherwise dispose of or encumber or enter into any agreement in respect of the votes or other rights attached to its interests in the joint venture without Ma’aden’s prior written consent.

A number of Alcoa employees perform various types of services for the smelting, rolling mill, and refining and mining companies as part of the construction of the fully-integrated aluminum complex. At December 31, 2012 and 2011, Alcoa had an outstanding receivable of $28 and $25, respectively, from the smelting, rolling mill, and refining and mining companies for labor and other employee-related expenses.

Capital investment in the project is expected to total approximately $10,800 (SAR 40.5 billion). Alcoa’s equity investment in the joint venture will be approximately $1,100 over a five-year period (2010 through 2014), and Alcoa will be responsible for its pro rata share of the joint venture’s project financing. Alcoa has contributed $661, including $253 and $249 in 2012 and 2011, respectively, towards the $1,100 commitment. As of December 31, 2012 and 2011, the carrying value of Alcoa’s investment in this project was $816 and $565, respectively.

In late 2010, the smelting and rolling mill companies entered into project financing totaling $4,035, of which $1,013 represents Alcoa’s share (the equivalent of Alcoa’s 25.1% interest in the smelting and rolling mill companies). Also, in late 2012, the smelting and rolling mill companies entered into additional project financing totaling $480, of which $120 represents Alcoa’s share. In conjunction with the financings, Alcoa issued guarantees on behalf of the smelting and rolling mill companies to the lenders in the event that such companies default on their debt service requirements through June 2017 and December 2018, respectively, (Ma’aden issued similar guarantees for its 74.9% interest). Alcoa’s guarantees for the smelting and rolling mill companies cover total debt service requirements of $121 in principal and up to a maximum of approximately $60 in interest per year (based on projected interest rates). At December 31, 2012 and 2011, the combined fair value of the guarantees was $10 and $8, respectively, and was included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet. Under the project financings, a downgrade of Alcoa’s credit ratings below investment grade by at least two agencies would require Alcoa to provide a letter of credit or fund an escrow account for a portion or all of Alcoa’s remaining equity commitment to the joint venture project in Saudi Arabia.

In late 2011, the refining and mining company entered into project financing totaling $1,992, of which $500 represents AWAC’s 25.1% interest in the refining and mining company. In conjunction with the financing, Alcoa, on behalf of AWAC, issued guarantees to the lenders in the event that the refining and mining company defaults on its debt service requirements through June 2019 (Ma’aden issued similar guarantees for its 74.9% interest). Alcoa’s guarantees for the refining and mining company cover total debt service requirements of $60 in principal and up to a maximum of approximately $25 in interest per year (based on projected interest rates). At December 31, 2012 and 2011, the combined fair value of the guarantees was $4. In the event Alcoa would be required to make payments under the guarantees, 40% of such amount would be contributed to Alcoa by Alumina Limited, consistent with its ownership interest in AWAC. Under the project financing, a downgrade of Alcoa’s credit ratings below investment grade by at least two agencies would require Alcoa to provide a letter of credit or fund an escrow account for a portion or all of Alcoa’s remaining equity commitment to the joint venture project in Saudi Arabia.

Power for the refinery, smelter, and rolling mill will be supplied under a gas allocation from Saudi Aramco, based on authorization of the Ministry of Petroleum and Mineral Resources of Saudi Arabia (the “Ministry of Petroleum”). The letter authorizing the gas allocation provides for gas to be tolled and power to be supplied to the refinery, smelter, and rolling mill from an adjacent power and water desalination plant being constructed by a company ultimately owned by the government of Saudi Arabia, with the major tolling elements fixed at cost. The gas allocation is contingent on the finalization of implementing contractual arrangements and on the achievement of certain milestones, as defined in the joint venture shareholders’ agreement, and includes possible penalties if the milestones are not met, including the following: (i) potential forfeiture of a $350 letter of credit required to be provided to the Ministry of Petroleum by Ma’aden (with Alcoa responsible for its pro rata share) to ensure completion of the refinery, (ii) potential forfeiture of the gas allocation if the smelter is not completed, (iii) a potential requirement for the smelter to allocate 275 kmt of aluminum to other entities determined by the Ministry of Petroleum if the rolling mill is not constructed, and (iv) under a new version of the gas allocation (issued in early 2011 and further extended in May 2012), forfeiture of a $60 letter of credit if certain auxiliary rolling facilities are not completed.

The parties subject to the joint venture shareholders’ agreement may not sell, transfer, or otherwise dispose of, pledge, or encumber any interests in the joint venture until certain milestones have been met as defined in both agreements. Under the joint venture shareholders’ agreement, upon the occurrence of an unremedied event of default by Alcoa, Ma’aden may purchase, or, upon the occurrence of an unremedied event of default by Ma’aden, Alcoa may sell, its interest for consideration that varies depending on the time of the default.

Other Investments. As of December 31, 2012 and 2011, Other investments included $67 and $92, respectively, in exchange-traded fixed income and equity securities, which are classified as available-for-sale and are carried at fair value with unrealized gains and losses recognized in other comprehensive income. Unrealized and realized gains and losses related to these securities were immaterial in 2012, 2011, and 2010.

- Definition

Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. This item also represents the entire disclosure related to Investments in Certain Debt and Equity Securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References + Details

Other Noncurrent Assets

12 Months Ended

Dec. 31, 2012

Other Noncurrent Assets

J. Other Noncurrent Assets


December 31,	2012		2011
Intangibles, net (E)	$	407	$	481
Cash surrender value of life insurance		464		455
Value-added tax receivable		408		510
Fair value of derivative contracts (X)		364		44
Prepaid gas transmission contract (N)		363		346
Deferred mining costs, net		223		221
Prepaid pension benefit (W)		86		109
Unamortized debt expense		86		98
Assets held for sale (B)		2		243
Other		309		289
	$	2,712	$	2,796

Debt

12 Months Ended

Dec. 31, 2012

Debt

K. Debt

Long-Term Debt.


December 31,	2012		2011
6% Notes, due 2012	$	-	$	322
6% Notes, due 2013		422		422
5.25% Convertible Notes, due 2014		575		575
5.55% Notes, due 2017		750		750
6.5% Bonds, due 2018		250		250
6.75% Notes, due 2018		750		750
5.72% Notes, due 2019		750		750
6.15% Notes, due 2020		1,000		1,000
5.40% Notes, due 2021		1,250		1,250
5.87% Notes, due 2022		627		627
5.9% Notes, due 2027		625		625
6.75% Bonds, due 2028		300		300
5.95% Notes due 2037		625		625
BNDES Loans, due 2013-2029 (see below for weighted average rates)		397		627
Iowa Finance Authority Loan, due 2042 (4.75%)		250		-
Other*		205		212
		8,776		9,085
Less: amount due within one year		465		445
	$	8,311	$	8,640

Other includes various financing arrangements related to subsidiaries, unamortized debt discounts related to the outstanding notes and bonds listed in the table above, a beneficial conversion feature related to the convertible notes, and adjustments to the carrying value of long-term debt related to interest swap contracts accounted for as fair value hedges (see the Derivatives section of Note X).

The principal amount of long-term debt maturing in each of the next five years is $465 in 2013, $661 in 2014, $34 in 2015, $33 in 2016, and $780 in 2017.

Public Debt—In January 2012, Alcoa repaid the $322 in outstanding principal of its 6% Notes as scheduled using available cash on hand.

In August 2012, Alcoa and the Iowa Finance Authority entered into a loan agreement for the proceeds from the issuance of $250 in Midwestern Disaster Area Revenue Bonds Series 2012 due 2042 (the “Bonds”). The Bonds were issued by the Iowa Finance Authority pursuant to the Heartland Disaster Tax Relief Act of 2008 for the purpose of financing all or part of the cost of acquiring, constructing, reconstructing, and renovating certain facilities at Alcoa’s rolling mill plant in Davenport, IA. Alcoa received $248 in net proceeds (reflecting payment of financing costs), which was classified as restricted cash. This transaction is not reflected in the accompanying Statement of Consolidated Cash Flows as it represents a non-cash financing and investing activity. At December 31, 2012, Alcoa had $171 of restricted cash remaining, all of which was classified in Prepaid expenses and other current assets on the accompanying Consolidated Balance Sheet. Interest on the Bonds is at a rate of 4.75% per annum and will be paid semi-annually in February and August, which will commence in February 2013. Alcoa has the option through the loan agreement to redeem the Bonds, as a whole or in part, on or after August 1, 2022, on at least 30 days, but not more than 60 days, prior notice to the holders of the Bonds at a redemption price equal to 100% of the principal amount thereof, without premium, plus accrued interest, if any, to the redemption date. The loan agreement ranks pari passu with Alcoa’s other unsecured senior unsubordinated indebtedness.

In February 2011, Alcoa filed an automatic shelf registration statement with the Securities and Exchange Commission for an indeterminate amount of securities for future issuance. This shelf registration statement replaced Alcoa’s existing shelf registration statement (filed in March 2008). As of December 31, 2012 and 2011, $1,250 in senior debt securities were issued under the current shelf registration statement.

In April 2011, Alcoa completed a public debt offering under its current shelf registration statement (dated February 18, 2011) for $1,250 of 5.40% Notes due 2021 (the “2021 Notes”). Alcoa received $1,241 in net proceeds from the public debt offering reflecting an original issue discount and payment of financing costs. The net proceeds were used for the early retirement of $881 in outstanding notes (see below), early repayment of $101 in outstanding loans related to the bauxite mine development in Brazil (see BNDES Loans below), and the remainder was used for general corporate purposes. The original issue discount and financing costs were deferred and are being amortized to interest expense over the term of the 2021 Notes. Interest on the 2021 Notes is paid semi-annually in April and October, which commenced in October 2011. Alcoa has the option to redeem the 2021 Notes, as a whole or in part, at any time or from time to time, on at least 30 days, but not more than 60 days, prior notice to the holders of the 2021 Notes at a redemption price specified in the 2021 Notes. The 2021 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the 2021 Notes) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2021 Notes repurchased, plus any accrued and unpaid interest on the 2021 Notes repurchased. The 2021 Notes rank pari passu with Alcoa’s other unsecured senior unsubordinated indebtedness.

In May 2011, Alcoa completed the following tender offers: (i) any and all of its 5.375% Notes due 2013 (the “5.375% Notes”) and (ii) up to $400 of its 6.00% Notes due 2013 (the “6.00% Notes” and collectively with the 5.375% Notes, the “Notes”). Upon expiration of the tender offers, $269 and $328 of the aggregate outstanding principal amount of the 5.375% Notes and 6.00% Notes, respectively, were validly tendered and accepted. Additionally in May 2011, subsequent to the expiration of the tender offer for the 5.375% Notes, Alcoa elected to call for redemption the remaining outstanding principal of $284 under the provisions of the 5.375% Notes. The total cash paid to the holders of the tendered 5.375% Notes and 6.00% Notes and the called 5.375% Notes was $972, which consisted of $881 in debt principal, $74 in purchase premiums, and $17 in accrued and unpaid interest from the respective last interest payment dates up to, but not including, the respective settlement dates. The $74 was recorded in Interest expense on the accompanying Statement of Consolidated Operations. Subsequent to the respective tender offer, the 6.00% Notes had a remaining outstanding principal of $422.

In conjunction with the early retirement of the 5.375% Notes, Alcoa terminated interest rate swaps with a notional amount totaling $550. These swaps were accounted for as fair value hedges and were used to convert the stated interest rate of the 5.375% Notes from fixed to floating. At the time of termination, the swaps were “in-the-money” resulting in a gain of $33, which was recorded in Interest expense on the accompanying Statement of Consolidated Operations.

BNDES Loans—In March 2008, Alcoa Alumínio (Alumínio) entered into two separate loan agreements (the “First Loans”) with Brazil’s National Bank for Economic and Social Development (BNDES) related to the Juruti bauxite mine development and the São Luís refinery expansion.

The first loan agreement provides for a commitment of $248 (R$500), which is divided into five subloans, and was used to pay for certain expenditures of the Juruti bauxite mine development. Interest on four of the subloans totaling $233 (R$470) is a Brazil real rate of interest equal to BNDES’ long-term interest rate, 5.00% and 6.00% as of December 31, 2012 and 2011, respectively, plus a weighted-average margin of 2.13%. Interest on the fifth subloan of $15 (R$30) is a U.S. dollar rate of interest equal to the average cost incurred by BNDES in raising capital outside of Brazil, 3.56% and 3.59% as of December 31, 2012 and 2011, respectively, plus a margin of 2.40%.

Principal and interest were payable monthly beginning in September 2009 and ending in November 2014 for the four subloans totaling $233 (R$470) and beginning in November 2009 and ending in January 2015 for the subloan of $15 (R$30). Prior to these dates, interest was payable quarterly on borrowed amounts.

As of December 31, 2012, Alumínio had no outstanding borrowings under any of the subloans. During 2012, Alumínio repaid $51 (R$102) and $3 (R$7) of outstanding borrowings related to the subloans totaling $233 (R$470) and the subloan of $15 (R$30), respectively.

As of December 31, 2011, Alumínio’s outstanding borrowings were $55 (R$102) and $3 (R$7) and the weighted-average interest rate was 8.13% and 5.99% for the subloans totaling $233 (R$470) and the subloan of $15 (R$30), respectively. During 2011, Alumínio repaid $131 (R$209) and $7 (R$11) of outstanding borrowings related to the subloans totaling $233 (R$470) and the subloan of $15 (R$30), respectively.

The second loan agreement provides for a commitment of $374 (R$650), which is divided into three subloans, and was used to pay for certain expenditures of the São Luís refinery expansion. Interest on two of the subloans totaling $339 (R$589) is a Brazil real rate of interest equal to BNDES’ long-term interest rate plus a weighted-average margin of 1.99%. Interest on the third subloan of $35 (R$61) is a U.S. dollar rate of interest equal to the average cost incurred by BNDES in raising capital outside of Brazil plus a margin of 2.02%.

Principal and interest were payable monthly beginning in December 2009 and ending in February 2015 for the two subloans totaling $339 (R$589) and beginning in February 2010 and ending in April 2015 for the subloan of $35 (R$61). Prior to these dates, interest was payable quarterly on borrowed amounts.

As of December 31, 2012, Alumínio had no outstanding borrowings under any of the subloans. During 2012, Alumínio repaid $176 (R$356) and $22 (R$46) of outstanding borrowings related to the subloans totaling $339 (R$589) and the subloan of $35 (R$61), respectively.

As of December 31, 2011, Alumínio’s outstanding borrowings were $191 (R$356) and $23 (R$42) and the weighted-average interest rate was 7.99% and 5.61% for the subloans totaling $339 (R$589) and the subloan of $35 (R$61), respectively. During 2011, Alumínio repaid $67 (R$113) and $7 (R$11) of outstanding borrowings related to the subloans totaling $339 (R$589) and the subloan of $35 (R$61), respectively.

The First Loans were repaid early without penalty under the approval of BNDES. With the full repayment of the First Loans, the commitments were effectively terminated.

In June 2008, Alumínio finalized certain documents related to another loan agreement with BNDES. This loan agreement provides for a commitment of $397 (R$687), which is divided into three subloans, and is being used to pay for certain expenditures of the Estreito hydroelectric power project. Interest on the three subloans is a Brazil real rate of interest equal to BNDES’ long-term interest rate plus a weighted-average margin of 1.48%. Principal and interest are payable monthly beginning in October 2011 and ending in September 2029 for two of the subloans totaling R$667 and beginning in July 2012 and ending in June 2018 for the subloan of R$20. This loan may be repaid early without penalty with the approval of BNDES.

As of December 31, 2012 and 2011, Alumínio’s outstanding borrowings were $311 (R$637) and $355 (R$661), respectively, and the weighted-average interest rate was 6.49% and 7.50%, respectively. During 2012 and 2011, Alumínio repaid $20 (R$38) and $5 (R$9), respectively, of outstanding borrowings. Additionally, Alumínio borrowed $7 (R$13) and $5 (R$8), under the loan in 2012 and 2011, respectively.

In December 2012, Alumínio finalized certain documents related to another loan agreement with BNDES. This loan agreement provides for a commitment of $85 (R$177) and is being used to pay for certain expenditures of the Estreito hydroelectric power project. Due to the timing of the finalization of the loan documents and the expenditures of the project, Alumínio advanced the cash necessary to the consortium to pay for the expenditures supported by this loan. Interest on the loan is a Brazil real rate of interest equal to BNDES’ long-term interest rate plus a margin of 1.55%. Principal and interest are payable monthly beginning in January 2013 and ending in September 2029. This loan may be repaid early without penalty with the approval of BNDES. As of December 31, 2012, Alumínio’s outstanding borrowings were $86 (R$177) and the interest rate was 6.55%.

Commercial Paper. Alcoa had no outstanding commercial paper at December 31, 2012. Outstanding commercial paper was $224 at December 31, 2011. In 2012 and 2011, the average outstanding commercial paper was $354 and $197. Commercial paper matures at various times within one year and had an annual weighted average interest rate of 0.8%, 0.6%, and 0.7% during 2012, 2011, and 2010, respectively.

On July 25, 2011, Alcoa entered into a Five-Year Revolving Credit Agreement (the “Credit Agreement”) with a syndicate of lenders and issuers named therein. The Credit Agreement provides a $3,750 senior unsecured revolving credit facility (the “Credit Facility”), the proceeds of which are to be used to provide working capital or for other general corporate purposes of Alcoa, including support of Alcoa’s commercial paper program. Subject to the terms and conditions of the Credit Agreement, Alcoa may from time to time request increases in lender commitments under the Credit Facility, not to exceed $500 in aggregate principal amount, and may also request the issuance of letters of credit, subject to a letter of credit sublimit of $1,000 under the Credit Facility.

The Credit Facility was scheduled to mature on July 25, 2016; however, on December 7, 2012, Alcoa received approval for a one-year extension of the maturity date by the lenders and issuers that support $3,700 of the Credit Facility (approval for the remaining $50 was received on January 8, 2013). As such, the Credit Facility now matures on July 25, 2017, unless extended or earlier terminated in accordance with the provisions of the Credit Agreement. Alcoa may make one additional one-year extension request during the remaining term of the Credit Facility, subject to the lender consent requirements set forth in the Credit Agreement. Under the provisions of the Credit Agreement, Alcoa will pay a fee of 0.25% (based on Alcoa’s long-term debt ratings as of December 31, 2012) of the total commitment per annum to maintain the Credit Facility.

The Credit Facility is unsecured and amounts payable under it will rank pari passu with all other unsecured, unsubordinated indebtedness of Alcoa. Borrowings under the Credit Facility may be denominated in U.S. dollars or euros. Loans will bear interest at a base rate or a rate equal to LIBOR, plus, in each case, an applicable margin based on the credit ratings of Alcoa’s outstanding senior unsecured long-term debt. The applicable margin on base rate loans and LIBOR loans will be 0.50% and 1.50% per annum, respectively, based on Alcoa’s long-term debt ratings as of December 31, 2012. Loans may be prepaid without premium or penalty, subject to customary breakage costs.

The Credit Facility replaces Alcoa’s Five-Year Revolving Credit Agreement, dated as of October 2, 2007 (the “Former Credit Agreement”), which was scheduled to mature on October 2, 2012. The Former Credit Agreement, which had a total capacity (excluding the commitment of Lehman Commercial Paper Inc.) of $3,275 and was undrawn, was terminated effective July 25, 2011.

The Credit Agreement includes covenants substantially similar to those in the Former Credit Agreement, including, among others, (a) a leverage ratio, (b) limitations on Alcoa’s ability to incur liens securing indebtedness for borrowed money, (c) limitations on Alcoa’s ability to consummate a merger, consolidation or sale of all or substantially all of its assets, and (d) limitations on Alcoa’s ability to change the nature of its business. As of December 31, 2012 and 2011, Alcoa was in compliance with all such covenants.

The obligation of Alcoa to pay amounts outstanding under the Credit Facility may be accelerated upon the occurrence of an “Event of Default” as defined in the Credit Agreement. Such Events of Default include, among others, (a) Alcoa’s failure to pay the principal of, or interest on, borrowings under the Credit Facility, (b) any representation or warranty of Alcoa in the Credit Agreement proving to be materially false or misleading, (c) Alcoa’s breach of any of its covenants contained in the Credit Agreement, and (d) the bankruptcy or insolvency of Alcoa.

There were no amounts outstanding at December 31, 2012 and 2011 and no amounts were borrowed during 2012 or 2011 under the Credit Facility.

Short-Term Borrowings. At December 31, 2012 and 2011, Short-term borrowings were $53 and $62, respectively. These amounts included $48 and $53 at December 31, 2012 and 2011, respectively, related to accounts payable settlement arrangements with certain vendors and third-party intermediaries. These arrangements provide that, at the vendor’s request, the third-party intermediary advances the amount of the scheduled payment to the vendor, less an appropriate discount, before the scheduled payment date and Alcoa makes payment to the third-party intermediary on the date stipulated in accordance with the commercial terms negotiated with its vendors. Alcoa records imputed interest related to these arrangements as interest expense in the Statement of Consolidated Operations.

In January 2012, Alcoa entered into two term loan agreements, totaling $350, with two separate financial institutions. Additionally, throughout 2012, Alcoa entered into six revolving credit agreements, providing a combined $640 in credit facilities, with six different financial institutions. The purpose of any borrowings under all eight arrangements will be to provide working capital and for other general corporate purposes, including contributions to Alcoa’s pension plans ($561 was contributed in 2012).

The two term loans were fully drawn on the same dates as the agreements and were subject to an interest rate equivalent to the 1-month LIBOR (changed from the 3-month LIBOR in April 2012) plus a 1.5% margin. A $150 term loan was repaid between October and November 2012 and a $200 term loan was repaid in December 2012, effectively terminating both agreements. In February 2012, Alcoa fully borrowed $100 under one of the credit facilities, which was repaid in August 2012. This borrowing was subject to an interest rate equivalent to the 6-month LIBOR plus a 1.25% margin. In July 2012, Alcoa fully borrowed $150 under one of the credit facilities, which was repaid in December 2012. This borrowing was subject to an interest rate equivalent to the 3-month LIBOR plus a 1.375% margin.

The six revolving credit facilities expire as follows: $150 in March 2013; $100 in September 2013 (originally December 2012, extended in September 2012); $100 in September 2013; $140 in October 2013; $100 in December 2013 (originally December 2012, extended in December 2012); and $50 in December 2015. The covenants contained in all eight arrangements are the same as the Credit Agreement (see the Commercial Paper section above).

During 2012, Alcoa’s subsidiary, Alumínio, borrowed and repaid a total of $280 in new loans with a weighted-average interest rate of 2.32% and a weighted-average maturity of 172 days from two financial institutions. The purpose of these borrowings was to support Alumínio’s export operations.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Other Noncurrent Liabilities and Deferred Credits

12 Months Ended

Dec. 31, 2012

Other Noncurrent Liabilities and Deferred Credits

L. Other Noncurrent Liabilities and Deferred Credits


December 31,	2012		2011
Fair value of derivative contracts (X)	$	606	$	624
Asset retirement obligations (C)		535		503
Environmental remediation (N)		458		289
Deferred income taxes (T)		460		395
Deferred credit related to derivative contract (X)		330		-
Accrued compensation and retirement costs		322		304
Deferred alumina sales revenue		108		116
Other		259		197
	$	3,078	$	2,428

Noncontrolling Interests

12 Months Ended

Dec. 31, 2012

Noncontrolling Interests

M. Noncontrolling Interests

The following table summarizes the noncontrolling shareholders’ interests in the equity of Alcoa’s majority-owned consolidated subsidiaries:


December 31,	2012		2011
Alcoa World Alumina and Chemicals	$	3,295	$	3,324
Other		29		27
	$	3,324	$	3,351

In 2012, 2011, and 2010, Alcoa received $171, $169, and $162, respectively, in contributions from the noncontrolling shareholder (Alumina Limited) of Alcoa World Alumina and Chemicals.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

+ References + Details

Contingencies and Commitments

12 Months Ended

Dec. 31, 2012

Contingencies and Commitments

N. Contingencies and Commitments

Contingencies

Litigation

Alba Civil Suit

On February 27, 2008, Alcoa Inc. (“Alcoa”) received notice that Aluminium Bahrain B.S.C. (“Alba”) had filed suit against Alcoa, Alcoa World Alumina LLC (“AWA”), and William Rice (collectively, the “Alcoa Parties”), and others, in the U.S. District Court for the Western District of Pennsylvania (the “Court”), Civil Action number 08-299, styled Aluminium Bahrain B.S.C. v. Alcoa Inc., Alcoa World Alumina LLC, William Rice, and Victor Phillip Dahdaleh. The complaint alleged that certain Alcoa entities and their agents, including Victor Phillip Dahdaleh, had engaged in a conspiracy over a period of 15 years to defraud Alba. The complaint further alleged that Alcoa and its employees or agents (1) illegally bribed officials of the government of Bahrain and/or officers of Alba in order to force Alba to purchase alumina at excessively high prices, (2) illegally bribed officials of the government of Bahrain and/or officers of Alba and issued threats in order to pressure Alba to enter into an agreement by which Alcoa would purchase an equity interest in Alba, and (3) assigned portions of existing supply contracts between Alcoa and Alba for the sole purpose of facilitating alleged bribes and unlawful commissions. The complaint alleged that Alcoa and the other defendants violated the Racketeer Influenced and Corrupt Organizations Act (RICO) and committed fraud. Alba claimed damages in excess of $1,000. Alba’s complaint sought treble damages with respect to its RICO claims; compensatory, consequential, exemplary, and punitive damages; rescission of the 2005 alumina supply contract; and attorneys’ fees and costs.

In response to a motion filed by the U.S. Department of Justice (“DOJ”) on March 27, 2008 (see “Government Investigations” below), the Court ordered the Alba civil suit administratively closed and stayed all discovery to allow the DOJ to fully conduct an investigation. On November 8, 2011, at Alcoa’s request, the Court removed the case from administrative stay and ordered Alba to file an Amended Complaint by November 28, 2011, and a RICO Case Statement 30 days thereafter for the limited purpose of allowing Alcoa to move to dismiss Alba’s lawsuit. Alcoa filed a motion to dismiss, which was denied on June 11, 2012.

During the second quarter of 2012, Alcoa proposed to settle the suit by offering Alba a cash payment of $45. Alcoa also offered Alba a long-term alumina supply contract. Based on the cash offer, Alcoa recorded a $45 ($18 after-tax and noncontrolling interest) charge in the 2012 second quarter representing Alcoa’s estimate of the minimum end of the range probable to settle the case, and estimated an additional reasonably possible charge of up to $75 to settle the suit.

On October 9, 2012, the Alcoa Parties, without admitting any liability, entered into a settlement agreement with Alba. The agreement called for AWA to pay Alba $85 in two equal installments, one-half at time of settlement and one-half one year later, and for the case against the Alcoa Parties to be dismissed with prejudice. Additionally, AWA and Alba entered into a long-term alumina supply agreement. On October 9, 2012, pursuant to the settlement agreement, AWA paid Alba $42.5, and all claims against the Alcoa Parties were dismissed with prejudice. Under the agreement, AWA is obligated to pay an additional $42.5, without interest or contingency, on October 9, 2013. Based on the settlement agreement, in the 2012 third quarter, Alcoa recorded a $40 ($15 after-tax and noncontrolling interest) charge in addition to the $45 ($18 after-tax and noncontrolling interest) charge it recorded in the 2012 second quarter in respect of the suit. In addition, based on an agreement between Alcoa and Alumina Limited (which holds a 40% equity interest in AWA), Alcoa estimates an additional reasonably possible after-tax charge of between $25 to $30 to reallocate a portion of the costs (including legal fees) of the Alba civil settlement from AWA to Alcoa, but this would occur only if a settlement is reached with the DOJ and the Securities and Exchange Commission (the “SEC”) regarding their investigations (see “Government Investigations” below).

Government Investigations

On February 26, 2008, Alcoa Inc. advised the DOJ and the SEC that it had recently become aware of the claims by Alba as alleged in the Alba civil suit, had already begun an internal investigation, and intended to cooperate fully in any investigation that the DOJ or the SEC may commence. On March 17, 2008, the DOJ notified Alcoa that it had opened a formal investigation and Alcoa has been cooperating with the government since that time.

Alcoa is actively negotiating with the DOJ and the SEC to reach a resolution of their investigations of the Alba matter; however, Alcoa has not reached any agreement with either agency. Given the uncertainty regarding whether a settlement can be reached and, if reached, on what terms, Alcoa is not able to estimate a range of reasonably possible loss with regard to any such settlement. If a settlement of the government investigations is reached, Alcoa believes that the settlement amount would be material to Alcoa’s results of operations for the relevant fiscal period. If a settlement cannot be reached, Alcoa will proceed to trial with the DOJ and the SEC and under those circumstances is unable to predict an outcome or to estimate its reasonably possible loss. There can be no assurance that the final outcome of the government’s investigations will not have a material adverse effect on Alcoa.

Other Matters

In November 2006, in Curtis v. Alcoa Inc., Civil Action No. 3:06cv448 (E.D. Tenn.), a class action was filed by plaintiffs representing approximately 13,000 retired former employees of Alcoa or Reynolds Metals Company and spouses and dependents of such retirees alleging violation of the Employee Retirement Income Security Act (ERISA) and the Labor-Management Relations Act by requiring plaintiffs, beginning January 1, 2007, to pay health insurance premiums and increased co-payments and co-insurance for certain medical procedures and prescription drugs. Plaintiffs alleged these changes to their retiree health care plans violated their rights to vested health care benefits. Plaintiffs additionally alleged that Alcoa had breached its fiduciary duty to plaintiffs under ERISA by misrepresenting to them that their health benefits would never change. Plaintiffs sought injunctive and declaratory relief, back payment of benefits, and attorneys’ fees. Alcoa had consented to treatment of plaintiffs’ claims as a class action. During the fourth quarter of 2007, following briefing and argument, the court ordered consolidation of the plaintiffs’ motion for preliminary injunction with trial, certified a plaintiff class, bifurcated and stayed the plaintiffs’ breach of fiduciary duty claims, struck the plaintiffs’ jury demand, but indicated it would use an advisory jury, and set a trial date of September 17, 2008. In August 2008, the court set a new trial date of March 24, 2009 and, subsequently, the trial date was moved to September 22, 2009. In June 2009, the court indicated that it would not use an advisory jury at trial. Trial in the matter was held over eight days commencing September 22, 2009 and ending on October 1, 2009 in federal court in Knoxville, TN before the Honorable Thomas Phillips, U.S. District Court Judge. At the conclusion of evidence, the court set a post-hearing briefing schedule for submission of proposed findings of fact and conclusions of law by the parties and for replies to the same. Post trial briefing was submitted on December 4, 2009.

On March 9, 2011, the court issued a judgment order dismissing plaintiffs’ lawsuit in its entirety with prejudice for the reasons stated in its Findings of Fact and Conclusions of Law. On March 23, 2011, plaintiffs filed a motion for clarification and/or amendment of the judgment order, which seeks, among other things, a declaration that plaintiffs’ retiree benefits are vested subject to an annual cap and an injunction preventing Alcoa, prior to 2017, from modifying the plan design to which plaintiffs are subject or changing the premiums and deductibles that plaintiffs must pay. Also on March 23, 2011, plaintiffs filed a motion for award of attorney’s fees and expenses. Alcoa filed its opposition to both motions on April 11, 2011. On June 11, 2012, the court issued its memorandum and order denying plaintiffs’ motion for clarification and/or amendment to the original judgment order. On July 6, 2012, plaintiffs filed a notice of appeal of the court’s March 9, 2011 judgment. On July 12, 2012, the trial court stayed Alcoa’s motion for assessment of costs pending resolution of plaintiffs’ appeal. The appeal is docketed in the United States Court of Appeals for the Sixth Circuit as case number 12-5801. On July 26, 2012, the appellate court issued a briefing schedule requiring briefing to be complete by the end of October 2012. On August 29, 2012, the trial court dismissed plaintiffs’ motion for attorneys’ fees without prejudice to refiling the motion following the resolution of the appeal at the Sixth Circuit Court of Appeals. Briefing on the appeal is complete and oral argument is scheduled for March 6, 2013.

On April 23, 2004, St. Croix Renaissance Group, L.L.L.P. (SCRG), Brownfield Recovery Corp., and Energy Answers Corporation of Puerto Rico (collectively referred to as “Plaintiffs”) filed a suit against St. Croix Alumina L.L.C. and Alcoa World Alumina, LLC (collectively referred to as “Alcoa”) in the Territorial Court of the Virgin Islands, Division of St. Croix for claims related to the sale of Alcoa’s former St. Croix alumina refinery to Plaintiffs. Alcoa thereafter removed the case to federal court and after a several year period of discovery and motion practice, a jury trial on the matter took place in St. Croix from January 11, 2011 to January 20, 2011. The jury returned a verdict in favor of Plaintiffs and awarded damages as described: on a claim of breaches of warranty, the jury awarded $13; on the same claim, the jury awarded punitive damages in the amount of $6; and on a negligence claim for property damage, the jury awarded $10. Plaintiffs filed a motion seeking pre-judgment interest on the jury award. On February 17, 2011, Alcoa filed post-trial motions seeking judgment notwithstanding the verdict or, in the alternative, a new trial. On May 31, 2011, the court granted Alcoa’s motion for judgment regarding Plaintiffs’ $10 negligence award and denied the remainder of Alcoa’s motions. Additionally, the court awarded Plaintiffs pre-judgment interest of $2 on the breach of warranty award. As a result of the court’s post-trial decisions, Alcoa recorded a charge of $20 in 2011 (see Note D). On June 14, 2011, Alcoa filed a notice of appeal with the U.S. Court of Appeals for the Third Circuit regarding Alcoa’s denied post-trial motions. On June 22, 2011, SCRG filed a notice of cross appeal with the Third Circuit Court related to certain pre-trial decisions of the court and of the court’s post-trial ruling on the negligence claim. The Third Circuit Court referred this matter to mediation as is its standard practice in appeals. Following mediation and further, separate settlement discussions, the parties executed an agreement dated September 30, 2011 resolving the matter in its entirety, and subsequently jointly petitioned (i) the District Court to release Alcoa from the jury verdict and (ii) the Third Circuit Court of Appeals to dismiss the matter. On March 13, 2012, the District Court entered an order discharging Alcoa from the jury verdict and, on March 14, 2012, the Third Circuit Court of Appeals dismissed the matter. This matter is now fully resolved.

Before 2002, Alcoa purchased power in Italy in the regulated energy market and received a drawback of a portion of the price of power under a special tariff in an amount calculated in accordance with a published resolution of the Italian Energy Authority, Energy Authority Resolution n. 204/1999 (“204/1999”). In 2001, the Energy Authority published another resolution, which clarified that the drawback would be calculated in the same manner, and in the same amount, in either the regulated or unregulated market. At the beginning of 2002, Alcoa left the regulated energy market to purchase energy in the unregulated market. Subsequently, in 2004, the Energy Authority introduced regulation no. 148/2004 which set forth a different method for calculating the special tariff that would result in a different drawback for the regulated and unregulated markets. Alcoa challenged the new regulation in the Administrative Court of Milan and received a favorable judgment in 2006. Following this ruling, Alcoa continued to receive the power price drawback in accordance with the original calculation method, through 2009, when the European Commission declared all such special tariffs to be impermissible “state aid.” In 2010, the Energy Authority appealed the 2006 ruling to the Consiglio di Stato (final court of appeal). On December 2, 2011, the Consiglio di Stato ruled in favor of the Energy Authority and against Alcoa, thus presenting the opportunity for the energy regulators to seek reimbursement from Alcoa of an amount equal to the difference between the actual drawback amounts received over the relevant time period, and the drawback as it would have been calculated in accordance with regulation 148/2004. On February 23, 2012, Alcoa filed its appeal of the decision of the Consiglio di Stato, and that appeal remains pending. On March 26, 2012, Alcoa received a letter from the agency (Cassa Conguaglio per il Settore Eletrico (CCSE)) responsible for making and collecting payments on behalf of the Energy Authority demanding payment in the amount of approximately $110 (€85), including interest. By letter dated April 5, 2012, Alcoa informed CCSE that it disputes the payment demand of CCSE since (i) CCSE was not authorized by the Consiglio di Stato decisions to seek payment of any amount, (ii) the decision of the Consiglio di Stato has been appealed and that appeal remains pending, and (iii) in any event, no interest should be payable. On April 29, 2012, Law No. 44 of 2012 (“44/2012”) came into effect, changing the method to calculate the drawback. Alcoa believes that under 44/2012 its range of reasonably possible loss is from $0 to $50 (€39). Following the effectiveness of 44/2012, Alcoa has received no further demands from CCSE. At this time, the company is unable to reasonably predict an outcome for this matter.

European Commission Matters. In July 2006, the European Commission (EC) announced that it had opened an investigation to establish whether an extension of the regulated electricity tariff granted by Italy to some energy-intensive industries complies with European Union (EU) state aid rules. The Italian power tariff extended the tariff that was in force until December 31, 2005 through November 19, 2009 (Alcoa has been incurring higher power costs at its smelters in Italy subsequent to the tariff end date). The extension was originally through 2010, but the date was changed by legislation adopted by the Italian Parliament effective on August 15, 2009. Prior to expiration of the tariff in 2005, Alcoa had been operating in Italy for more than 10 years under a power supply structure approved by the EC in 1996. That measure provided a competitive power supply to the primary aluminum industry and was not considered state aid from the Italian Government. The EC’s announcement expressed concerns about whether Italy’s extension of the tariff beyond 2005 was compatible with EU legislation and potentially distorted competition in the European market of primary aluminum, where energy is an important part of the production costs.

On November 19, 2009, the EC announced a decision in this matter stating that the extension of the tariff by Italy constituted unlawful state aid, in part, and, therefore, the Italian Government is to recover a portion of the benefit Alcoa received since January 2006 (including interest). The amount of this recovery will be based on a calculation that is being prepared by the Italian Government (see below). In late 2009, after discussions with legal counsel and reviewing the bases on which the EC decided, including the different considerations cited in the EC decision regarding Alcoa’s two smelters in Italy, Alcoa recorded a charge of $250 (€173), which included $20 (€14) to write off a receivable from the Italian Government for amounts due under the now expired tariff structure and $230 (€159) to establish a reserve. On April 19, 2010, Alcoa filed an appeal of this decision with the General Court of the EU. Alcoa will pursue all substantive and procedural legal steps available to annul the EC’s decision. On May 22, 2010, Alcoa also filed with the General Court a request for injunctive relief to suspend the effectiveness of the decision, but, on July 12, 2010, the General Court denied such request. On September 10, 2010, Alcoa appealed the July 12, 2010 decision to the European Court of Justice (ECJ); this appeal was dismissed on December 16, 2011.

In June 2012, Alcoa received formal notification from the Italian Government with a calculated recovery amount of $375 (€303); this amount was reduced by $65 (€53) of amounts owed by the Italian Government to Alcoa, resulting in a net payment request of $310 (€250). In a notice published in the Official Journal of the European Union on September 22, 2012, the EC announced that it had filed an action against the Italian Government on July 18, 2012 to compel it to collect the recovery amount. On September 27, 2012, Alcoa received a request for payment in full of the $310 (€250) by October 31, 2012. Since then, Alcoa has been in discussions with the Italian Government regarding the timing of such payment. Alcoa commenced payment of the requested amount in five quarterly installments of $66 (€50), paying the first installment on October 31, 2012. It is possible that Alcoa may be required to accelerate payment or pay in a lump sum. Notwithstanding the payment request or the timing of such payments, Alcoa’s estimate of the most probable loss of the ultimate outcome of this matter and the low end of the range of reasonably possible loss, which is $209 (€159) to $375 (€303), remains the $209 (€159) (the U.S. dollar amount reflects the effects of foreign currency movements since 2009) recorded in November 2009. At December 31, 2012, Alcoa’s reserve for this matter stands at $143 (€109), reflecting the payment made in October 2012. The full extent of the loss will not be known until the final judicial determination, which could be a period of several years.

Separately, on November 29, 2006, Alcoa filed an appeal before the General Court (formerly the European Court of First Instance) seeking the annulment of the EC’s decision to open an investigation alleging that such decision did not follow the applicable procedural rules. On March 25, 2009, the General Court denied Alcoa’s appeal. On May 29, 2009, Alcoa appealed the March 25, 2009 ruling before the ECJ. The hearing of the May 29, 2009 appeal was held on June 24, 2010. On July 21, 2011, the ECJ denied Alcoa’s appeal.

As a result of the EC’s November 19, 2009 decision, management had contemplated ceasing operations at its Italian smelters due to uneconomical power costs. In February 2010, management agreed to continue to operate its smelters in Italy for up to six months while a long-term solution to address increased power costs could be negotiated.

Also in February 2010, the Italian Government issued a decree, which was converted into law by the Italian Parliament in March 2010, to provide interruptibility rights to certain industrial customers who were willing to be subject to temporary interruptions in the supply of power (i.e. compensation for power interruptions when grids are overloaded) over a three-year period. Alcoa applied for and was granted such rights (expired on December 31, 2012) related to its Portovesme smelter. In May 2010, the EC stated that, based on their review of the validity of the decree, the interruptibility rights should not be considered state aid. On July 29, 2010, Alcoa executed a new power agreement effective September 1, 2010 through December 31, 2012 for the Portovesme smelter, replacing the short-term, market-based power contract that was in effect since early 2010.

Additionally in May 2010, Alcoa and the Italian Government agreed to a temporary idling of the Fusina smelter. As of June 30, 2010, the Fusina smelter was fully curtailed (44 kmt-per-year).

At the end of 2011, as part of a restructuring of Alcoa’s global smelting system (see Note D), management decided to curtail operations at the Portovesme smelter during the first half of 2012. This action may lead to the permanent closure of the Portovesme smelter, due to the uncertain prospects for viable, long-term power, along with rising raw materials costs and falling global aluminum prices (mid-2011 to late 2011). In March 2012, Alcoa decided to delay the curtailment of the Portovesme smelter until the second half of 2012 based on negotiations with the Italian Government and other stakeholders. In September 2012, Alcoa began the process of curtailing the Portovesme smelter, which was fully curtailed by the end of 2012.

In January 2007, the EC announced that it had opened an investigation to establish whether the regulated electricity tariffs granted by Spain comply with EU state aid rules. At the time the EC opened its investigation, Alcoa had been operating in Spain for more than nine years under a power supply structure approved by the Spanish Government in 1986, an equivalent tariff having been granted in 1983. The investigation is limited to the year 2005 and is focused both on the energy-intensive consumers and the distribution companies. The investigation provided 30 days to any interested party to submit observations and comments to the EC. With respect to the energy-intensive consumers, the EC opened the investigation on the assumption that prices paid under the tariff in 2005 were lower than a pool price mechanism, therefore being, in principle, artificially below market conditions. Alcoa submitted comments in which the company provided evidence that prices paid by energy-intensive consumers were in line with the market, in addition to various legal arguments defending the legality of the Spanish tariff system. It is Alcoa’s understanding that the Spanish tariff system for electricity is in conformity with all applicable laws and regulations, and therefore no state aid is present in the tariff system. While Alcoa does not believe that an unfavorable decision is probable, management has estimated that the total potential impact from an unfavorable decision could be approximately $90 (€70) pretax. Also, while Alcoa believes that any additional cost would only be assessed for the year 2005, it is possible that the EC could extend its investigation to later years. If the EC’s investigation concludes that the regulated electricity tariffs for industries are unlawful, Alcoa will have an opportunity to challenge the decision in the EU courts.

Environmental Matters. Alcoa continues to participate in environmental assessments and cleanups at a number of locations (more than 100). These include owned or operating facilities and adjoining properties, previously owned or operating facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. A liability is recorded for environmental remediation when a cleanup program becomes probable and the costs or damages can be reasonably estimated.

As assessments and cleanups proceed, the liability is adjusted based on progress made in determining the extent of remedial actions and related costs and damages. The liability can change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, and technological changes, among others.

Alcoa’s remediation reserve balance was $532 and $347 at December 31, 2012 and 2011 (of which $74 and $58 was classified as a current liability), respectively, and reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated.

In 2012, the remediation reserve was increased by $206 due to charges of $165 related to the Massena West, NY site (see below), charges totaling $45 related to smelter sites in Canada and Norway (see below), a charge of $14 related to the former East St. Louis, IL site (see below), a reversal of $30 related to the former Sherwin, TX site (see below), and a net increase of $12 associated with a number of other sites. In 2011, the remediation reserve was increased by $31 due to charges of $18 related to the decision to permanently shut down and demolish a U.S. smelter (see Note D) and a net increase of $13 associated with a number of other sites. In both periods, the changes to the remediation reserve, except for the aforementioned $18 in 2011, were recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations.

Payments related to remediation expenses applied against the reserve were $22 and $19 in 2012 and 2011, respectively. These amounts include expenditures currently mandated, as well as those not required by any regulatory authority or third party. In 2012 and 2011, the change in the reserve also reflects an increase of $1 and a decrease of $1, respectively, due to the effects of foreign currency translation. Additionally, the change in the 2011 reserve reflects an increase of $3 related to the acquisition of an aerospace fasteners business (see Note F).

Included in annual operating expenses are the recurring costs of managing hazardous substances and environmental programs. These costs are estimated to be approximately 2% of cost of goods sold.

The following discussion provides details regarding the current status of certain significant reserves related to current or former Alcoa sites.

Massena West, NY—Alcoa has been conducting investigations and studies of the Grasse River, adjacent to Alcoa’s Massena plant site, under a 1989 order from the U.S. Environmental Protection Agency (EPA) issued under CERCLA. Sediments and fish in the river contain varying levels of polychlorinated biphenyls (PCBs).

Alcoa submitted various Analysis of Alternatives Reports to the EPA starting in 1998 through 2002 that reported the results of river and sediment studies, potential alternatives for remedial actions related to the PCB contamination, and additional information requested by the EPA.

In June 2003, the EPA requested that Alcoa gather additional field data to assess the potential for sediment erosion from winter river ice formation and breakup. The results of these additional studies, submitted in a report to the EPA in April 2004, suggest that this phenomenon has the potential to occur approximately every 10 years and may impact sediments in certain portions of the river under all remedial scenarios. The EPA informed Alcoa that a final remedial decision for the river could not be made without substantially more information, including river pilot studies on the effects of ice formation and breakup on each of the remedial techniques. Alcoa submitted to the EPA, and the EPA approved, a Remedial Options Pilot Study (ROPS) to gather this information. The scope of this study included sediment removal and capping, the installation of an ice control structure, and significant monitoring.

From 2004 through 2008, Alcoa completed the work outlined in the ROPS. In November 2008, Alcoa submitted an update to the EPA incorporating the new information obtained from the ROPS related to the feasibility and costs associated with various capping and dredging alternatives, including options for ice control. As a result, Alcoa increased the reserve associated with the Grasse River by $40 for the estimated costs of a proposed ice control remedy and for partial settlement of potential damages of natural resources.

In late 2009, the EPA requested that Alcoa submit a complete revised Analysis of Alternatives Report in March 2010 to address questions and comments from the EPA and various stakeholders. On March 24, 2010, Alcoa submitted the revised report, which included an expanded list of proposed remedial alternatives, as directed by the EPA. Alcoa increased the reserve associated with the Grasse River by $17 to reflect an increase in the estimated costs of the Company’s recommended capping alternative as a result of changes in scope that occurred due to the questions and comments from the EPA and various stakeholders. While the EPA reviewed the revised report, Alcoa continued with its on-going monitoring and field studies activities. In late 2010, Alcoa increased the reserve by $2 based on the then most recent estimate of costs expected to be incurred for on-going monitoring and field studies activities. In late 2011, the EPA and various stakeholders completed their review of the March 2010 revised report and submitted questions and comments to Alcoa. As a result, Alcoa increased the reserve by $1 to reflect a revision in the estimate of costs expected to be incurred for on-going monitoring and field studies activities.

In the first half of 2012, Alcoa received final questions and comments from the EPA and other stakeholders on the revised Analysis of Alternatives Report submitted in March 2010, including a requirement that would increase the scope of the recommended capping alternative. In June 2012, Alcoa submitted a revised Analysis of Alternatives Report, which included four less alternatives than the previous report and addressed the final questions and comments from all stakeholders. These final questions and comments resulted in a change to Alcoa’s recommended capping alternative by increasing the area to be remediated. Consequently, Alcoa increased the reserve associated with the Grasse River by $37 to reflect the changes to the recommended alternative.

In October 2012, the EPA selected a proposed remedy from the alternatives included in the June 2012 Analysis of Alternatives Report and released a Proposed Remedial Action Plan (PRAP). The alternative selected by the EPA recommends capping PCB contaminated sediments with concentration in excess of one part per million in the main channel of the river and dredging PCB contaminated sediments in the near-shore areas where total PCBs exceed one part per million. This alternative will result in additional estimated costs above that of the alternative recommended by Alcoa in the June 2012 Analysis of Alternatives Report. As a result, Alcoa increased the reserve associated with the Grasse River by $128 to reflect such additional estimated costs of the EPA’s proposed remedy. The PRAP was open for public comment until November 29, 2012 (extended from November 15, 2012 due to the effects of Hurricane Sandy). The EPA is in the process of reviewing the comments received and, at the conclusion of that review, will issue a final Record of Decision (ROD), which may require Alcoa to record a subsequent reserve adjustment. Once a ROD is issued, the planning and design phase is expected to take approximately two to three years, followed by the actual remediation fieldwork that is expected to take approximately four years. The majority of the project funding is expected to be spent between 2016 and 2020.

Sherwin, TX—In connection with the sale of the Sherwin alumina refinery, which was required to be divested as part of the Reynolds merger in 2000, Alcoa agreed to retain responsibility for the remediation of the then existing environmental conditions, as well as a pro rata share of the final closure of the active bauxite residue waste disposal areas (known as the Copano facility). Alcoa’s share of the closure costs is proportional to the total period of operation of the active waste disposal areas. Alcoa estimated its liability for the active waste disposal areas by making certain assumptions about the period of operation, the amount of material placed in the area prior to closure, and the appropriate technology, engineering, and regulatory status applicable to final closure. The most probable cost for remediation was reserved.

For a number of years, Alcoa has been working with Sherwin Alumina Company to develop a sustainable closure plan for the active waste disposal areas, which is partly conditioned on Sherwin’s operating plan for the Copano facility. In 2012, Alcoa received the technical analysis of the closure plan and the operating plan from Sherwin in order to develop a closure cost estimate, including an assessment of Alcoa’s potential liability. It was determined that the most probable course of action would result in a smaller liability than originally reserved due to new information related to the amount of storage capacity in the waste disposal areas and revised assumptions regarding Alcoa’s share of the obligation based on the operating plan provided by Sherwin. As such, Alcoa reduced the reserve associated with Sherwin by $30.

East St. Louis, IL—In response to questions regarding environmental conditions at the former East St. Louis operations, Alcoa and the City of East St. Louis, the owner of the site, entered into an administrative order with the EPA in December 2002 to perform a remedial investigation and feasibility study of an area used for the disposal of bauxite residue from historic alumina refining operations. A draft feasibility study was submitted to the EPA in April 2005. The feasibility study included remedial alternatives that ranged from no further action to significant grading, stabilization, and water management of the bauxite residue disposal areas. As a result, Alcoa increased the environmental reserve for this location by $15 in 2005.

In April 2012, in response to comments from the EPA and other stakeholders, Alcoa submitted a revised feasibility study to the EPA, which soon thereafter issued a PRAP identifying a soil cover as the EPA’s recommended alternative. Based on this recommendation, Alcoa submitted a detailed design and cost estimate for implementation of the remedy. A draft consent decree was issued in May 2012 by the EPA and all parties are actively engaged in negotiating a final consent decree and statement of work. As a result, Alcoa increased the reserve associated with East St. Louis by $14 to reflect the necessary costs for this remedy.

On July 30, 2012, the EPA issued a ROD for this matter and Alcoa began the process of bidding and contracting for the construction work. The ultimate outcome of negotiations and the bidding of the construction work could result in additional liability.

Fusina and Portovesme, Italy—In 1996, Alcoa acquired the Fusina smelter and rolling operations and the Portovesme smelter, both of which are owned by Alcoa’s subsidiary Alcoa Trasformazioni S.r.l. (“Trasformazioni”), from Alumix, an entity owned by the Italian Government. At the time of the acquisition, Alumix indemnified Alcoa for pre-existing environmental contamination at the sites. In 2004, the Italian Ministry of Environment (MOE) issued orders to Trasformazioni and Alumix for the development of a clean-up plan related to soil contamination in excess of allowable limits under legislative decree and to institute emergency actions and pay natural resource damages. Trasformazioni appealed the orders and filed suit against Alumix, among others, seeking indemnification for these liabilities under the provisions of the acquisition agreement. In 2009, Ligestra S.r.l. (“Ligestra”), Alumix’s successor, and Trasformazioni agreed to a stay on the court proceedings while investigations were conducted and negotiations advanced towards a possible settlement.

In December 2009, Trasformazioni and Ligestra reached an agreement for settlement of the liabilities related to Fusina while negotiations continued related to Portovesme. The agreement outlines an allocation of payments to the MOE for emergency action and natural resource damages and the scope and costs for a proposed soil remediation project, which was formally presented to the MOE in mid-2010. The agreement is contingent upon final acceptance of the remediation project by the MOE. As a result of entering into this agreement, Alcoa increased the reserve by $12 for Fusina. Based on comments received from the MOE and local and regional environmental authorities, Trasformazioni submitted a revised remediation plan in the first half of 2012; however, such revisions did not require any change to the existing reserve.

Additionally, due to new information derived from the site investigations conducted at Portovesme, Alcoa increased the reserve by $3 in 2009. In November 2011, Trasformazioni and Ligestra reached an agreement for settlement of the liabilities related to Portovesme, similar to the one for Fusina. A proposed soil remediation project for Portovesme was formally presented to the MOE in June 2012. Neither the agreement with Ligestra nor the proposal to the MOE resulted in a change to the reserve for Portovesme.

Baie Comeau, Quebec, Canada—In August 2012, Alcoa presented an analysis of remediation alternatives to the Quebec Ministry of Sustainable Development, Environment, Wildlife and Parks (MDDEP), in response to a previous request, related to known PCBs and polycyclic aromatic hydrocarbons (PAHs) contained in sediments of the Anse du Moulin bay. As such, Alcoa increased the reserve for Baie Comeau by $25 to reflect the estimated cost of Alcoa’s recommended alternative, consisting of both dredging and capping of the contaminated sediments. The ultimate selection of a remedy may result in additional liability at the time the MDDEP issues a final decision.

Mosjøen, Norway—In September 2012, Alcoa presented an analysis of remediation alternatives to the Norwegian Climate and Pollution Agency (known as “Klif”), in response to a previous request, related to known PAHs in the sediments located in the harbor and extending out into the fjord. As such, Alcoa increased the reserve for Mosjøen by $20 to reflect the estimated cost of the baseline alternative for dredging of the contaminated sediments. The ultimate selection of a remedy may result in additional liability at the time the Klif issues a final decision.

Other. In addition to the matters discussed above, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against Alcoa, including those pertaining to environmental, product liability, safety and health, and tax matters. While the amounts claimed in these other matters may be substantial, the ultimate liability cannot now be determined because of the considerable uncertainties that exist. Therefore, it is possible that the Company’s liquidity or results of operations in a particular period could be materially affected by one or more of these other matters. However, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on the financial position of the Company.

Commitments

Investments. Alumínio, a wholly-owned subsidiary of Alcoa, is a participant in four consortiums that each owns a hydroelectric power project in Brazil. The purpose of Alumínio’s participation is to increase its energy self-sufficiency and provide a long-term, low-cost source of power for its two smelters and one refinery. These projects are known as Machadinho, Barra Grande, Serra do Facão, and Estreito.

Alumínio committed to taking a share of the output of the Machadinho and Barra Grande projects each for 30 years and the Serra do Facão and Estreito projects each for 26 years at cost (including cost of financing the project). In the event that other participants in any of these projects fail to fulfill their financial responsibilities, Alumínio may be required to fund a portion of the deficiency. In accordance with the respective agreements, if Alumínio funds any such deficiency, its participation and share of the output from the respective project will increase proportionately.

The Barra Grande project reached full capacity in 2006. Alumínio’s investment in this project is 42.18% and is accounted for under the equity method. This entitles Alumínio to approximately 160 megawatts of assured power. Alumínio’s total investment in this project was $159 (R$326) and $169 (R$314) at December 31, 2012 and 2011, respectively.

The Machadinho project reached full capacity in 2002. Alumínio’s investment in this project is 30.99% and is accounted for under the equity method. This entitles Alumínio to approximately 120 megawatts of assured power. Alumínio’s total investment in this project was $95 (R$195) and $97 (R$182) at December 31, 2012 and 2011, respectively. Alumínio has also issued a third-party guarantee related to its share of the consortium’s debt. Alcoa’s maximum exposure to loss on this project is approximately $120 (R$240), which represents Alumínio’s investment and guarantee of debt as of December 31, 2012.

The Serra do Facão project reached full capacity in 2010. Alumínio’s investment in this project is 34.97% and is accounted for under the equity method. This entitles Alumínio to approximately 65 megawatts of assured power. Alumínio’s total investment in this project was $98 (R$200) and $105 (R$196) at December 31, 2012 and 2011, respectively. Alumínio previously issued a third-party guarantee related to its share of the consortium’s debt; however, in October 2012, the lender released all of the consortium’s investors from their respective guarantees.

Even though the Serra do Facão project has been fully operational since 2010, construction costs continue to be incurred to complete the facility related to environmental compliance in accordance with the installation license. Total estimated project costs are approximately $490 (R$1,000) and Alumínio’s share is approximately $170 (R$350). As of December 31, 2012, approximately $170 (R$350) of Alumínio’s commitment was expended on the project (includes both funds provided by Alumínio and Alumínio’s share of the long-term financing).

The Estreito project is expected to reach full capacity in March 2013. Alumínio’s investment in this project is 25.49%, which entitles Alumínio to approximately 150 megawatts of assured power. The Estreito consortium is an unincorporated joint venture, and, therefore, Alumínio’s share of the assets and liabilities of the consortium are reflected in the respective lines on the accompanying Consolidated Balance Sheet. Total estimated project costs are approximately $2,520 (R$5,170) and Alumínio’s share is approximately $640 (R$1,320). These amounts reflect an approved increase by the consortium in 2012 of approximately $130 (R$270) to complete the Estreito project due to fluctuations in currency, inflation, and the price and scope of construction, among other factors. As of December 31, 2012, approximately $610 (R$1,250) of Alumínio’s commitment was expended on the project.

Based on the operational capabilities of all four projects at the end of 2012, Alumínio’s current power self-sufficiency satisfies almost 70% of a total energy demand of approximately 690 megawatts from two smelters (São Luís (Alumar) and Poços de Caldas) and one refinery (Poços de Caldas) in Brazil.

In 2004, Alcoa acquired a 20% interest in a consortium, which subsequently purchased the Dampier to Bunbury Natural Gas Pipeline (DBNGP) in Western Australia, in exchange for an initial cash investment of $17 (A$24). The investment in the DBNGP, which is classified as an equity investment, was made in order to secure a competitively priced long-term supply of natural gas to Alcoa’s refineries in Western Australia. Alcoa has made additional contributions of $141 (A$176) for its share of the pipeline capacity expansion and other operational purposes of the consortium through September 2011. No further expansion of the pipeline’s capacity is planned at this time. In late 2011, the consortium initiated a three-year equity call plan to improve its capitalization structure. This plan requires Alcoa to contribute $40 (A$40), of which $12 (A$11) and $5 (A$6) was made in 2012 and 2011, respectively. In addition to its equity ownership, Alcoa has an agreement to purchase gas transmission services from the DBNGP. At December 31, 2012, Alcoa has an asset of $363 (A$349) representing prepayments made under the agreement for future gas transmission services. Alcoa’s maximum exposure to loss on the investment and the related contract is approximately $520 (A$500) as of December 31, 2012.

Purchase Obligations. Alcoa is party to unconditional purchase obligations for energy that expire between 2015 and 2036. Commitments related to these contracts total $176 in 2013, $175 in 2014, $176 in 2015, $165 in 2016, $165 in 2017, and $2,688 thereafter. Expenditures under these contracts totaled $161 in 2012, $227 in 2011, and $129 in 2010. Additionally, Alcoa has entered into other purchase commitments for energy, raw materials, and other goods and services, which total $3,502 in 2013, $2,137 in 2014, $2,085 in 2015, $1,926 in 2016, $2,496 in 2017, and $20,717 thereafter.

Operating Leases. Certain computer equipment, plant equipment, vehicles, and buildings and alumina refinery process control technology are under operating lease agreements. Total expense from continuing operations for all leases was $244 in 2012, $255 in 2011, and $260 in 2010. Under long-term operating leases, minimum annual rentals are $198 in 2013, $155 in 2014, $127 in 2015, $102 in 2016, $77 in 2017, and $597 thereafter.

Guarantees. At December 31, 2012, Alcoa has maximum potential future payments for guarantees issued on behalf of certain third parties of $621. These guarantees expire in 2015 through 2019 and relate to project financing for a hydroelectric power project in Brazil (see Investments section above) and the aluminum complex in Saudi Arabia (see Note I). Alcoa also has outstanding bank guarantees related to tax matters, outstanding debt, workers compensation, environmental obligations, energy contracts, and customs duties, among others. The total amount committed under these guarantees, which expire at various dates between 2013 and 2017, was $494 at December 31, 2012.

Letters of Credit. Alcoa has outstanding letters of credit primarily related to workers’ compensation, energy contracts, and leasing obligations. The total amount committed under these letters of credit, which automatically renew or expire at various dates, mostly in 2013, was $299 at December 31, 2012.

Surety Bonds. Alcoa has outstanding surety bonds primarily related to tax matters, contract performance, workers compensation, environmental-related matters, and customs duties. The total amount committed under these bonds, which automatically renew or expire at various dates, mostly in 2013 and 2014, was $193 at December 31, 2012.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Other (Income) Expenses, Net

12 Months Ended

Dec. 31, 2012

Other (Income) Expenses, Net

O. Other (Income) Expenses, Net


	2012			2011			2010
Equity loss (income)	$	28		$	(15	)	$	(14	)
Interest income		(31	)		(20	)		(19	)
Foreign currency (gains) losses, net		(5	)		16			13
Net gain from asset sales		(321	)		(41	)		(9	)
Net (gain) loss on mark-to-market derivative contracts (X)		(13	)		(52	)		37
Other, net		1			25			(3	)
	$	(341	)	$	(87	)	$	5

In 2012, Net gain from asset sales included a $320 gain related to the sale of the Tapoco Hydroelectric Project (see Note F). In 2011, Equity income included higher earnings from an investment in a natural gas pipeline in Australia due to the recognition of a discrete income tax benefit by the consortium (Alcoa World Alumina and Chemicals’ share of the benefit was $24). Also in 2011, Net gain from asset sales included a $43 gain related to the sale of land in Australia.

Cash Flow Information

12 Months Ended

Dec. 31, 2012

Cash Flow Information

P. Cash Flow Information

Cash paid for interest and income taxes was as follows:


	2012		2011		2010
Interest, net of amount capitalized	$	454	$	491	$	452
Income taxes, net of amount refunded		223		382		(67	)

The details related to cash paid for acquisitions were as follows:


	2012		2011			2010
Assets acquired	$	-	$	253		$	87
Liabilities assumed		-		(12	)		(15	)
Noncontrolling interests acquired		-		-			4
Redemption of convertible securities of subsidiary		-		-			40
Reduction in Alcoa shareholders’ equity		-		-			22
Cash paid		-		241			138
Less: cash acquired		-		1			-
Net cash paid	$	-	$	240		$	138

Noncash Financing and Investing Activities. In August 2012, Alcoa received a loan of $250 for the purpose of financing all or part of the cost of acquiring, constructing, reconstructing, and renovating certain facilities at Alcoa’s rolling mill plant in Davenport, IA (see Note K). Because this loan can only be used for this purpose, the net proceeds of $248 were classified as restricted cash. Since restricted cash is not part of cash and cash equivalents, this transaction was not reflected in the accompanying Statement of Consolidated Cash Flows as it represents a noncash activity. As funds are expended for the project, the release of the cash will be reflected as both an inflow on the Net change in restricted cash line and an outflow on the Capital expenditures line in the Investing Activities section of the Statement of Consolidated Cash Flows. At December 31, 2012, Alcoa had $171 of restricted cash remaining related to this transaction.

In 2011 and 2010, Alcoa issued $600 in common stock to satisfy a portion of its accrued pension benefits liability (see Notes R and W).

Segment and Geographic Area Information

12 Months Ended

Dec. 31, 2012

Segment and Geographic Area Information

Q. Segment and Geographic Area Information

Alcoa is primarily a producer of aluminum products. Aluminum and alumina represent more than 80% of Alcoa’s revenues. Nonaluminum products include precision castings and aerospace and industrial fasteners. Alcoa’s segments are organized by product on a worldwide basis. Segment performance under Alcoa’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is the after-tax operating income (ATOI) of each segment. Certain items such as 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 are excluded from segment ATOI. Segment assets exclude, among others, cash and cash equivalents; deferred income taxes; goodwill not allocated to businesses for segment reporting purposes; corporate fixed assets; LIFO reserves; and other items, including the assets of the soft alloy extrusions business in Brazil and assets classified as held for sale related to discontinued operations.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note A). Transactions among segments are established based on negotiation among the parties. Differences between segment totals and Alcoa’s consolidated totals for line items not reconciled are in Corporate.

Alcoa’s products are used worldwide in transportation (including aerospace, automotive, truck, trailer, rail, and shipping), packaging, building and construction, oil and gas, defense, and industrial applications. Total export sales from the U.S. included in continuing operations were $2,107 in 2012, $1,988 in 2011, and $1,543 in 2010.

Alcoa’s operations consist of four worldwide reportable segments as follows:

Alumina. This segment represents a portion of Alcoa’s upstream operations and consists of the Company’s worldwide refinery system, including the mining of bauxite, which is then refined into alumina. Alumina is mainly sold directly to internal and external smelter customers worldwide or is sold to customers who process it into industrial chemical products. A portion of this segment’s third-party sales are completed through the use of agents, alumina traders, and distributors. Slightly more than half of Alcoa’s alumina production is sold under supply contracts to third parties worldwide, while the remainder is used internally by the Primary Metals segment.

Primary Metals. This segment represents a portion of Alcoa’s upstream operations and consists of the Company’s worldwide smelter system. Primary Metals receives alumina, mostly from the Alumina segment, and produces primary aluminum used by Alcoa’s fabricating businesses, as well as sold to external customers, aluminum traders, and commodity markets. Results from the sale of aluminum powder, scrap, and excess power are also included in this segment, as well as the results of aluminum derivative contracts and buy/resell activity. Primary aluminum produced by Alcoa and used internally is transferred to other segments at prevailing market prices. The sale of primary aluminum represents more than 90% of this segment’s third-party sales. Buy/resell activity refers to when this segment purchases metal from external or internal sources and resells such metal to external customers or the midstream and downstream segments in order to maximize smelting system efficiency and to meet customer requirements.

Global Rolled Products. This segment represents Alcoa’s midstream operations, whose principal business is the production and sale of aluminum plate and sheet. A small portion of this segment’s operations relate to foil produced at one plant in Brazil. This segment includes rigid container sheet (RCS), which is sold directly to customers in the packaging and consumer market and is used to produce aluminum beverage cans. Seasonal increases in RCS sales are generally experienced in the second and third quarters of the year. This segment also includes sheet and plate used in the aerospace, automotive, commercial transportation, and building and construction markets (mainly used in the production of machinery and equipment and consumer durables), which is sold directly to customers and through distributors. Approximately one-half of the third-party sales in this segment consist of RCS, while the other one-half of third-party sales are derived from sheet and plate and foil used in industrial markets. While the customer base for flat-rolled products is large, a significant amount of sales of RCS, sheet, and plate is to a relatively small number of customers.

Engineered Products and Solutions. This segment represents Alcoa’s downstream operations and includes titanium, aluminum, and super alloy investment castings; forgings and fasteners; aluminum wheels; integrated aluminum structural systems; and architectural extrusions used in the aerospace, automotive, building and construction, commercial transportation, and power generation markets. These products are sold directly to customers and through distributors. Additionally, hard alloy extrusions products, which are also sold directly to customers and through distributors, serve the aerospace, automotive, commercial transportation, and industrial products markets.

The operating results and assets of Alcoa’s reportable segments were as follows:


	Alumina			Primary Metals			Global Rolled Products			Engineered Products and Solutions		Total
2012
Sales:
Third-party sales	$	3,092		$	7,432		$	7,378		$	5,525	$	23,427
Intersegment sales		2,310			2,877			163			-		5,350
Total sales	$	5,402		$	10,309		$	7,541		$	5,525	$	28,777
Profit and loss:
Equity income (loss)	$	5		$	(27	)	$	(6	)	$	-	$	(28	)
Depreciation, depletion, and amortization		455			532			229			158		1,374
Income taxes		(27	)		106			167			297		543
ATOI		90			309			358			612		1,369
2011
Sales:
Third-party sales	$	3,462		$	8,240		$	7,642		$	5,345	$	24,689
Intersegment sales		2,727			3,192			218			-		6,137
Total sales	$	6,189		$	11,432		$	7,860		$	5,345	$	30,826
Profit and loss:
Equity income (loss)	$	25		$	(7	)	$	(3	)	$	1	$	16
Depreciation, depletion, and amortization		444			556			237			158		1,395
Income taxes		179			92			104			260		635
ATOI		607			481			266			539		1,893
2010
Sales:
Third-party sales	$	2,815		$	7,070		$	6,277		$	4,584	$	20,746
Intersegment sales		2,212			2,597			180			-		4,989
Total sales	$	5,027		$	9,667		$	6,457		$	4,584	$	25,735
Profit and loss:
Equity income	$	10		$	1		$	-		$	2	$	13
Depreciation, depletion, and amortization		406			571			238			154		1,369
Income taxes		60			96			92			195		443
ATOI		301			488			220			415		1,424
2012
Assets:
Capital expenditures	$	374		$	318		$	258		$	200	$	1,150
Equity investments		658			917			188			-		1,763
Goodwill		10			997			214			2,677		3,898
Total assets		9,709			11,709			4,603			5,891		31,912
2011
Assets:
Capital expenditures	$	371		$	463		$	157		$	173	$	1,164
Equity investments		450			925			123			-		1,498
Goodwill		11			991			208			2,666		3,876
Total assets		9,782			11,867			4,559			5,831		32,039

The following tables reconcile certain segment information to consolidated totals:


	2012			2011			2010
Sales:
Total segment sales	$	28,777		$	30,826		$	25,735
Elimination of intersegment sales		(5,350	)		(6,137	)		(4,989	)
Corporate*		273			262			267
Consolidated sales	$	23,700		$	24,951		$	21,013

*	For all periods presented, the Corporate amount includes third-party sales of three soft alloy extrusion facilities located in Brazil.


	2012			2011			2010
Net income attributable to Alcoa:
Total segment ATOI	$	1,369		$	1,893		$	1,424
Unallocated amounts (net of tax):
Impact of LIFO		20			(38	)		(16	)
Interest expense		(319	)		(340	)		(321	)
Noncontrolling interests		29			(194	)		(138	)
Corporate expense		(282	)		(290	)		(291	)
Restructuring and other charges		(75	)		(196	)		(134	)
Discontinued operations		-			(3	)		(8	)
Other		(551	)		(221	)		(262	)
Consolidated net income attributable to Alcoa	$	191		$	611		$	254


December 31,	2012			2011
Assets:
Total segment assets	$	31,912		$	32,039
Elimination of intersegment receivables		(444	)		(483	)
Unallocated amounts:
Cash and cash equivalents		1,861			1,939
Deferred income taxes		4,061			3,738
Corporate goodwill		1,272			1,281
Corporate fixed assets, net		961			935
LIFO reserve		(770	)		(801	)
Other		1,326			1,472
Consolidated assets	$	40,179		$	40,120

Sales by major product grouping were as follows:


	2012		2011		2010
Sales:
Alumina	$	2,962	$	3,350	$	2,740
Primary aluminum		7,121		7,907		6,842
Flat-rolled aluminum		7,378		7,642		6,277
Investment castings		1,747		1,700		1,521
Fastening systems		1,414		1,313		1,070
Architectural aluminum systems		970		973		884
Aluminum wheels		692		656		475
Other extruded aluminum and forged products		955		1,010		930
Other		461		400		274
	$	23,700	$	24,951	$	21,013

Geographic information for sales was as follows (based upon the country where the point of sale occurred):


	2012		2011		2010
Sales:
U.S.*	$	12,361	$	12,295	$	10,560
Australia		3,222		3,587		2,842
Brazil		1,244		1,371		1,182
Spain		1,203		1,487		1,234
Netherlands**		949		1,025		940
Norway		820		927		809
France		807		825		662
Russia		713		761		584
Hungary		492		665		505
United Kingdom		438		412		331
Italy		379		537		418
China		326		283		188
Germany		216		229		231
Other		530		547		527
	$	23,700	$	24,951	$	21,013

*	Sales that occurred in the U.S. include a portion of alumina from Alcoa’s refineries in Suriname, Brazil, Australia, and Jamaica and aluminum from the Company’s smelters in Canada.

**	Sales that occurred in the Netherlands include aluminum from Alcoa’s smelter in Iceland.

Geographic information for long-lived assets was as follows (based upon the physical location of the assets):


December 31,	2012		2011
Long-lived assets:
U.S.	$	4,621	$	4,439
Brazil		4,318		4,844
Australia		3,548		3,390
Iceland		1,571		1,615
Canada		1,399		1,447
Norway		898		894
Russia		494		531
Spain		445		451
Jamaica		414		417
China		395		424
Other		844		830
	$	18,947	$	19,282

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Preferred and Common Stock

12 Months Ended

Dec. 31, 2012

Preferred and Common Stock

R. Preferred and Common Stock

Preferred Stock. Alcoa has two classes of preferred stock: Class A Preferred Stock and Class B Serial Preferred Stock. Class A Preferred Stock has 660,000 shares authorized at a par value of $100 per share with an annual $3.75 cumulative dividend preference per share. There were 546,024 of such shares outstanding at December 31, 2012 and 2011. Class B Serial Preferred Stock has 10 million shares authorized (none issued) and a par value of $1 per share.

Common Stock. There are 1.8 billion shares authorized at a par value of $1 per share, and 1,177,906,557 shares were issued at December 31, 2012 and 2011. The current dividend yield as authorized by Alcoa’s Board of Directors is $0.12 per annum or $0.03 per quarter.

In January 2011, Alcoa contributed 36,518,563 newly issued shares of its common stock to a master trust that holds the assets of certain U.S. defined benefit pension plans in a private placement transaction. These shares were valued at $16.43 per share (the closing price of Alcoa’s common stock on January 24, 2011), or $600 in the aggregate, and were issued to satisfy the estimated minimum required funding and to provide additional funding towards maintaining an approximately 80% funded status of Alcoa’s U.S. pension plans. On January 25, 2011, the 36,518,563 shares were registered under Alcoa’s then-current shelf registration statement dated March 10, 2008 (replaced by shelf registration statement dated February 18, 2011) for resale by the master trust, as selling stockholder.

In January 2010, Alcoa contributed 44,313,146 newly issued shares of its common stock to a master trust that holds the assets of certain U.S. defined benefit pension plans in a private placement transaction. These shares were valued at $13.54 per share (the closing price of Alcoa’s common stock on January 26, 2010), or $600 in the aggregate, and were issued to satisfy a portion of Alcoa’s future funding obligations to these plans, including a portion of the estimated minimum required funding for 2011. On January 27, 2010, the 44,313,146 shares were registered under Alcoa’s then-current shelf registration statement dated March 10, 2008 for resale by the master trust, as selling stockholder.

As of December 31, 2012, 110 million and 86 million shares of common stock were reserved for issuance upon conversion of convertible notes and under Alcoa’s stock-based compensation plans, respectively. Alcoa issues shares from treasury stock to satisfy the exercise of stock options and the conversion of stock awards.

Share Activity (number of shares)


	Common stock
	Treasury			Outstanding
Balance at end of 2009		122,695,718			974,378,820
Private placement		-			44,313,146
Conversion of convertible notes		-			310
Issued for stock-based compensation plans		(3,333,689	)		3,333,689
Balance at end of 2010		119,362,029			1,022,025,965
Private placement		-			36,518,563
Issued for stock-based compensation plans		(5,867,538	)		5,867,538
Balance at end of 2011		113,494,491			1,064,412,066
Issued for stock-based compensation plans		(2,799,887	)		2,799,887
Balance at end of 2012		110,694,604			1,067,211,953

Stock-based Compensation

Stock options under Alcoa’s stock-based compensation plans are granted in January each year at market prices on the dates of grant. Prior to 2011, performance stock options were also granted to certain individuals. For performance stock options granted in 2010, the final number of options earned was based on Alcoa’s adjusted free cash flow and profitability against pre-established targets. Stock option features based on date of original grant were as follows:


Date of original grant	Vesting	Term	Reload feature
2002 and prior	1 year	10 years		One reload over option term
2003	3 years (1/3 each year)	10 years		One reload in 2004 for 1/3 vesting in 2004
2004 - 2009	3 years (1/3 each year)	6 years		None
2010 and forward	3 years (1/3 each year)	10 years		None

In addition to the stock options described above, Alcoa grants stock awards that vest three years from the date of grant. In 2010, certain of these stock awards were granted with the same performance conditions described above for performance stock options. In 2012 and 2011, the final number of performance stock awards earned will be based on the achievement of sales and profitability targets over a three-year period. One-third of the award will be earned each year based on the performance against pre-established targets for that year. The performance stock awards earned over the three-year period vest at the end of the third year.

The following table summarizes the total compensation expense recognized for all stock options and stock awards (there was no stock-based compensation expense capitalized in 2012, 2011, or 2010):


	2012		2011		2010
Compensation expense recognized:
Stock option grants	$	27	$	34	$	44
Stock award grants		40		49		40
Total compensation expense before income taxes		67		83		84
Benefit for income taxes		21		27		27
Total compensation expense, net of income taxes	$	46	$	56	$	57

As part of Alcoa’s stock-based compensation plan design, individuals who are retirement-eligible have a six-month requisite service period in the year of grant. As a result, a larger portion of expense will be recognized in the first half of each year for these retirement-eligible employees. Of the total compensation expense before income taxes included in the table above, $13, $18, and $19 in 2012, 2011, and 2010, respectively, pertains to the acceleration of expense related to retirement-eligible employees.

The fair value of new options was estimated on the date of grant using a lattice-pricing model with the following assumptions:


	2012			2011			2010
Weighted average fair value per option	$	3.11		$	4.96		$	4.67
Average risk-free interest rate		0.06-1.89	%		0.19-3.44	%		0.14-3.62	%
Dividend yield		0.9	%		0.9	%		1.1	%
Volatility		39-45	%		36-43	%		47-51	%
Annual forfeiture rate		5	%		5	%		4	%
Exercise behavior		45	%		45	%		35	%
Life (years)		5.8			5.8			5.6

The range of average risk-free interest rates was based on a yield curve of interest rates at the time of the grant based on the contractual life of the option. The dividend yield was based on a one-year average. Volatility was based on historical and implied volatilities over the term of the option. Alcoa utilized historical option forfeiture data to estimate annual pre- and post-vesting forfeitures. Exercise behavior was based on a weighted average exercise ratio (exercise patterns for grants issued over the number of years in the contractual option term) of an option’s intrinsic value resulting from historical employee exercise behavior. Based upon the other assumptions used in the determination of the fair value, the life of an option was an output of the lattice-pricing model.

The activity for stock options was as follows (options in millions):


	2012			2011			2010
Outstanding, beginning of year:
Number of options		46.8			56.1			65.5
Weighted average exercise price	$	17.41		$	19.29		$	24.44
Granted:
Number of options		10.5			4.5			9.0
Weighted average exercise price	$	10.17		$	16.24		$	13.52
Exercised:
Number of options		(1.5	)		(4.3	)		(1.6	)
Weighted average exercise price	$	8.28		$	8.59		$	8.34
Expired or forfeited:
Number of options		(10.8	)		(9.5	)		(16.8	)
Weighted average exercise price	$	31.83		$	31.90		$	37.21
Outstanding, end of year:
Number of options		45.0			46.8			56.1
Weighted average exercise price	$	12.58		$	17.41		$	19.29
Exercisable, end of year:
Number of options		29.8			28.8			30.2
Weighted average exercise price	$	13.02		$	20.90		$	26.91

The total intrinsic value of options exercised during 2012, 2011, and 2010 was $2, $34, and $8, respectively. In 2012, 2011, and 2010, the cash received from option exercises was $12, $37, and $13 and the total tax benefit realized from these exercises was $1, $11, and $2, respectively.

The following tables summarize certain stock option information at December 31, 2012 (number of options and intrinsic value in millions):

Options Fully Vested and/or Expected to Vest*


Range of exercise price	Number		Weighted average remaining contractual life		Weighted average exercise price		Intrinsic Value
$6.12 - $8.33		17.9		2.06	$	8.33	$	7
$8.34 - $11.33		10.3		8.93		10.17		-
$11.34 - $17.40		11.2		7.21		14.47		-
$17.41 - $46.77		5.6		0.26		26.96		-
Total		45.0		4.69		12.58	$	7

*	Expected forfeitures are immaterial to the Company and are not reflected in the table above.

Options Fully Vested and Exercisable


Range of exercise price	Number		Weighted average remaining contractual life		Weighted average exercise price		Intrinsic Value
$6.12 - $8.33		17.9		2.06	$	8.33	$	7
$8.34 - $11.33		0.1		6.65		10.72		-
$11.34 - $17.40		6.2		7.07		14.10		-
$17.41 - $46.77		5.6		0.26		26.96		-
Total		29.8		2.77		13.02	$	7

In addition to stock option awards, the Company grants stock awards and performance share awards, both of which vest three years from the date of grant. Performance share awards are issued at target and the final award amount is determined at the end of the performance period.

The following table summarizes the outstanding stock and performance share awards (awards in millions):


	Stock Awards			Performance Share Awards			Total			Weighted average FMV per award
Outstanding, January 1, 2012		6.4			2.9			9.3		$	13.63
Granted		3.0			1.9			4.9			10.08
Converted		(1.0	)		(0.8	)		(1.8	)		8.42
Forfeited		(0.5	)		(0.2	)		(0.7	)		13.49
Performance share adjustment		-			0.2			0.2			12.74
Outstanding, December 31, 2012		7.9			4.0			11.9			12.96

At December 31, 2012, there was $22 and $35 of unrecognized compensation expense (pretax) related to non-vested stock option grants and non-vested stock award grants, respectively. This expense is expected to be recognized over a weighted average period of 1.5 years. As of December 31, 2012, the following table summarizes the unrecognized compensation expense expected to be recognized in future periods:


	Stock-based compensation expense (pretax)
2013	$	38
2014		18
2015		1
Totals	$	57

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share

S. Earnings Per Share

Basic earnings per share (EPS) amounts are computed by dividing earnings, after the deduction of preferred stock dividends declared and dividends and undistributed earnings allocated to participating securities, by the average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding not classified as participating securities.

The information used to compute basic and diluted EPS attributable to Alcoa common shareholders was as follows (shares in millions):


	2012		2011		2010
Income from continuing operations attributable to Alcoa common shareholders	$	191	$	614	$	262
Less: preferred stock dividends declared		2		2		2
Income from continuing operations available to common equity		189		612		260
Less: dividends and undistributed earnings allocated to participating securities		-		1		1
Income from continuing operations available to Alcoa common shareholders—basic		189		611		259
Add: interest expense related to convertible notes		-		30		-
Income from continuing operations available to Alcoa common shareholders—diluted	$	189	$	641	$	259
Average shares outstanding—basic		1,067		1,061		1,018
Effect of dilutive securities:
Stock options		3		7		6
Stock and performance awards		6		4		1
Convertible notes		-		89		-
Average shares outstanding—diluted		1,076		1,161		1,025

Participating securities are defined as unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) and are included in the computation of earnings per share pursuant to the two-class method. Prior to January 1, 2010, under Alcoa’s stock-based compensation programs, certain employees were granted stock and performance awards, which entitle those employees to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of Alcoa’s common stock. As such, these unvested stock and performance awards met the definition of a participating security. Under the two-class method, all earnings, whether distributed or undistributed, are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. At December 31, 2012, there were no outstanding participating securities, as all such securities have vested and were converted into shares of common stock. At December 31, 2011 and 2010 there were 2 million and 4 million participating securities outstanding, respectively.

Effective January 1, 2010, new grants of stock and performance awards do not contain a nonforfeitable right to dividends during the vesting period. As a result, an employee will forfeit the right to dividends accrued on unvested awards if that person does not fulfill their service requirement during the vesting period. As such, these awards are not treated as participating securities in the EPS calculation as the employees do not have equivalent dividend rights as common shareholders. These awards are included in the EPS calculation utilizing the treasury stock method similar to stock options. At December 31, 2012, 2011, and 2010, there were 12 million, 8 million, and 4 million such awards outstanding, respectively.

In 2012 and 2010, 89 million share equivalents related to convertible notes were not included in the computation of diluted EPS because their effect was anti-dilutive.

Options to purchase 27 million, 27 million, and 23 million shares of common stock at a weighted average exercise price of $15.41, $24.00, and $32.73 per share were outstanding as of December 31, 2012, 2011, and 2010, respectively, but were not included in the computation of diluted EPS because they were anti-dilutive, as the exercise prices of the options were greater than the average market price of Alcoa’s common stock.

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes

T. Income Taxes

The components of income from continuing operations before income taxes were as follows:


	2012			2011			2010
U.S.	$	394		$	(98	)	$	(403	)
Foreign		(70	)		1,161			951
	$	324		$	1,063		$	548

The provision for income taxes on income from continuing operations consisted of the following:


	2012			2011			2010
Current:
Federal*	$	85		$	10		$	33
Foreign		167			427			409
State and local		9			(1	)		(7	)
		261			436			435
Deferred:
Federal*		129			28			37
Foreign		(227	)		(211	)		(320	)
State and local		(1	)		2			(4	)
		(99	)		(181	)		(287	)
Total	$	162		$	255		$	148

*	Includes U.S. taxes related to foreign income

Included in discontinued operations is a tax benefit of $1 in 2011 and $3 in 2010.

The exercise of employee stock options generated a tax charge of $1 in 2012 and a tax benefit of $6 in 2011 and $2 in 2010, representing only the difference between compensation expense recognized for financial reporting and tax purposes. These amounts decreased or increased equity and increased or reduced current taxes payable in their respective periods.

Alcoa has unamortized tax-deductible goodwill of $97 resulting from intercompany stock sales and reorganizations. Alcoa recognizes the tax benefits (generally at a 30% to 34% rate) associated with this tax-deductible goodwill as it is being amortized for local income tax purposes rather than in the period in which the transaction is consummated.

A reconciliation of the U.S. federal statutory rate to Alcoa’s effective tax rate for continuing operations was as follows:


	2012			2011			2010
U.S. federal statutory rate		35.0	%		35.0	%		35.0	%
Taxes on foreign operations		(0.1	)		(11.0	)		(5.4	)
Permanent differences on restructuring charges and asset disposals		10.8			-			0.7
Audit and other adjustments to prior years’ accruals		3.5			(1.1	)		1.2
Noncontrolling interests		3.8			0.8			2.6
Statutory tax rate and law changes		(0.4	)		0.8			(5.1	)
Tax law change related to Medicare Part D		-			-			14.4
Changes in valuation allowances		15.2			2.3			(8.7	)
Amortization of goodwill related to intercompany stock sales/reorganizations		(7.7	)		(2.8	)		(5.2	)
Change in legal structure of investment		(4.1	)		-			-
Interest income related to income tax positions		(1.3	)		(0.2	)		-
Company-owned life insurance/split-dollar net premiums		(3.9	)		(0.2	)		(1.8	)
Other		(0.8	)		0.4			(0.8	)
Effective tax rate		50.0	%		24.0	%		26.9	%

On March 23, 2010, the Patient Protection and Affordable Care Act (the “PPACA”) was signed into law, and, on March 30, 2010, the Health Care and Education Reconciliation Act of 2010 (the “HCERA” and, together with PPACA, the “Acts”), which makes various amendments to certain aspects of the PPACA, was signed into law. The Acts effectively change the tax treatment of federal subsidies paid to sponsors of retiree health benefit plans that provide prescription drug benefits that are at least actuarially equivalent to the corresponding benefits provided under Medicare Part D.

Alcoa pays a portion of the prescription drug cost for eligible retirees under certain postretirement benefit plans. These benefits were determined to be actuarially equivalent to the Medicare Part D prescription drug benefit of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “MPDIMA”). Alcoa has been receiving the federal subsidy since the 2006 tax year related to the aforementioned postretirement benefit plans. Under the MPDIMA, the federal subsidy did not reduce an employer’s income tax deduction for the costs of providing such prescription drug plans nor was it subject to income tax individually.

Under the Acts, beginning in 2013, an employer’s income tax deduction for the costs of providing Medicare Part D-equivalent prescription drug benefits to retirees will be reduced by the amount of the federal subsidy. Under GAAP, any impact from a change in tax law must be recognized in earnings in the period enacted regardless of the effective date. As a result, Alcoa recognized a noncash charge of $79 in 2010 for the elimination of a related deferred tax asset to reflect the change in the tax treatment of the federal subsidy.

The components of net deferred tax assets and liabilities were as follows:


	2012					2011
December 31,	Deferred tax assets			Deferred tax liabilities		Deferred tax assets			Deferred tax liabilities
Depreciation	$	104		$	1,015	$	74		$	933
Employee benefits		2,742			46		2,668			51
Loss provisions		368			17		325			9
Deferred income/expense		53			203		45			181
Tax loss carryforwards		2,186			-		2,035			-
Tax credit carryforwards		508			-		477			-
Derivatives and hedging activities		117			16		109			43
Other		324			297		315			288
		6,402			1,594		6,048			1,505
Valuation allowance		(1,400	)		-		(1,398	)		-
	$	5,002		$	1,594	$	4,650		$	1,505

The following table details the expiration periods of the deferred tax assets presented above:


December 31, 2012	Expires within 10 years			Expires within 11-20 years			No expiration*			Other*			Total
Tax loss carryforwards	$	332		$	886		$	968		$	-		$	2,186
Tax credit carryforwards		370			73			65			-			508
Other		-			-			762			2,946			3,708
Valuation allowance		(212	)		(659	)		(244	)		(285	)		(1,400	)
	$	490		$	300		$	1,551		$	2,661		$	5,002

Deferred tax assets with no expiration may still have annual limitations on utilization. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. A substantial amount of Other relates to employee benefits that will become deductible for tax purposes over an extended period of time as contributions are made to employee benefit plans and payments are made to retirees.

The total deferred tax asset (net of valuation allowance) is supported by taxable temporary differences that reverse within the carryforward period (approximately 25%), tax planning strategies (approximately 5%), and projections of future taxable income exclusive of reversing temporary differences (approximately 70%).

Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and the Company’s experience with similar operations. Existing favorable contracts and the ability to sell product into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow the utilization of the deferred tax asset based on existing projections of income. In certain jurisdictions, deferred tax assets related to cumulative losses exist without a valuation allowance where in management’s judgment the weight of the positive evidence more than offsets the negative evidence of the cumulative losses. Upon changes in facts and circumstances, management may conclude that deferred tax assets for which no valuation allowance is currently recorded may not be realizable in future periods, resulting in a future charge to record a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays.

In December 2011, one of the Company’s subsidiaries in Brazil applied for a tax holiday related to its expanded mining and refining operations. If approved, the tax rate for this subsidiary will decrease significantly, resulting in future cash tax savings over the 10-year holiday period (would be effective as of January 1, 2013). Additionally, the net deferred tax asset of the subsidiary would be remeasured at the lower rate in the period the holiday is approved. This remeasurement would result in a decrease to the net deferred tax asset and a noncash charge to earnings of approximately $60 to $120. As of December 31, 2012, Alcoa’s subsidiary’s application is still pending.

The following table details the changes in the valuation allowance:


December 31,	2012			2011
Balance at beginning of year	$	1,398		$	1,268
Increase to allowance		45			157
Release of allowance		(48	)		(25	)
Foreign currency translation		5			(2	)
Balance at end of year	$	1,400		$	1,398

The cumulative amount of Alcoa’s foreign undistributed net earnings for which no deferred taxes have been provided was approximately $8,000 at December 31, 2012. Alcoa has a number of commitments and obligations related to the Company’s growth strategy in foreign jurisdictions. As such, management has no plans to distribute such earnings in the foreseeable future, and, therefore, has determined it is not practicable to determine the related deferred tax liability.

Alcoa and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. With a few minor exceptions, Alcoa is no longer subject to income tax examinations by tax authorities for years prior to 2002. All U.S. tax years prior to 2012 have been audited by the Internal Revenue Service. Various state and foreign jurisdiction tax authorities are in the process of examining Alcoa’s income tax returns for various tax years through 2010.

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows:


December 31,	2012			2011			2010
Balance at beginning of year	$	51		$	46		$	48
Additions for tax positions of the current year		-			-			-
Additions for tax positions of prior years		39			13			30
Reductions for tax positions of prior years		(7	)		(3	)		(5	)
Settlements with tax authorities		(18	)		(4	)		(22	)
Expiration of the statute of limitations		-			-			(5	)
Foreign currency translation		1			(1	)		-
Balance at end of year	$	66		$	51		$	46

For all periods presented, a portion of the balance at end of year pertains to state tax liabilities, which are presented before any offset for federal tax benefits. The effect of unrecognized tax benefits, if recorded, that would impact the annual effective tax rate for 2012, 2011, and 2010 would be approximately 6%, 2%, and 4%, respectively, of pretax book income. Alcoa does not anticipate that changes in its unrecognized tax benefits will have a material impact on the Statement of Consolidated Operations during 2013.

It is Alcoa’s policy to recognize interest and penalties related to income taxes as a component of the Provision for income taxes on the accompanying Statement of Consolidated Operations. In 2012, 2011, and 2010, Alcoa recognized $3, $2, and $1, respectively, in interest and penalties. Due to the expiration of the statute of limitations, settlements with tax authorities, and refunded overpayments, Alcoa also recognized interest income of $7, $2, and $4 in 2012, 2011, and 2010, respectively. As of December 31, 2012 and 2011, the amount accrued for the payment of interest and penalties was $15 and $12, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Receivables

12 Months Ended

Dec. 31, 2012

Receivables

U. Receivables

Sale of Receivables Programs

Alcoa has three arrangements, each with a different financial institution, to sell certain customer receivables outright without recourse on a continuous basis. As of December 31, 2012, sold receivables, which were derecognized from the accompanying Consolidated Balance Sheet, in the amount of $37 under the three arrangements combined were uncollected. Alcoa services the customer receivables for the financial institutions at market rates; therefore, no servicing asset or liability was recorded.

On March 30, 2012, Alcoa finalized a one-year arrangement with a financial institution to sell certain customer receivables without recourse on a revolving basis. The sale of such receivables is completed through the use of a bankruptcy remote special purpose entity, which is a consolidated subsidiary of Alcoa. This arrangement provides for minimum funding of $50 up to a maximum of $250 for receivables sold. Alcoa initially sold $304 of customer receivables in exchange for $50 in cash and $254 of deferred purchase price under this arrangement. Alcoa received additional cash funding of $155 throughout 2012. As of December 31, 2012, the deferred purchase price receivable was $18, which was included in Other receivables on the accompanying Consolidated Balance Sheet. The deferred purchase price receivable is reduced as collections of the underlying receivables occur; however, as this is a revolving program, the sale of new receivables will result in an increase in the deferred purchase price receivable. The net change in the deferred purchase price receivable was reflected in the Decrease in receivables line item on the accompanying Statement of Consolidated Cash Flows. This activity is reflected as an operating cash flow because the related customer receivables are the result of an operating activity with an insignificant, short-term interest rate risk. In 2012, the gross cash outflows and inflows associated with the deferred purchase price receivable were $3,339 and $3,321, respectively. The gross amount of receivables sold and total cash collections under this program since its inception was $3,339 and $3,116, respectively. Alcoa services the customer receivables for the financial institution at market rates; therefore, no servicing asset or liability was recorded.

Allowance for Doubtful Accounts

The following table details the changes in the allowance for doubtful accounts related to customer receivables and other receivables:


	Customer receivables						Other receivables
December 31,	2012			2011			2012			2011
Balance at beginning of year	$	46		$	46		$	79		$	87
Provision for doubtful accounts		2			19			9			7
Write off of uncollectible accounts		(8	)		(14	)		(3	)		(3	)
Recoveries of prior write-offs		(1	)		(3	)		(6	)		(5	)
Other		-			(2	)		(5	)		(7	)
Balance at end of year	$	39		$	46		$	74		$	79

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=13989330&loc=d3e107207-111719

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122596-111746

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122739-111746

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7523297&loc=d3e113969-111729

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122625-111746

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7519067&loc=SL6226446-111709

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=13989330&loc=d3e107314-111719

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 10
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph B1-B12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Interest Cost Components

12 Months Ended

Dec. 31, 2012

Interest Cost Components

V. Interest Cost Components


	2012		2011		2010
Amount charged to expense	$	490	$	524	$	494
Amount capitalized		93		101		96
	$	583	$	625	$	590

Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2012

Pension and Other Postretirement Benefits

W. Pension and Other Postretirement Benefits

Alcoa maintains pension plans covering most U.S. employees and certain employees in foreign locations. Pension benefits generally depend on length of service, job grade, and remuneration. Substantially all benefits are paid through pension trusts that are sufficiently funded to ensure that all plans can pay benefits to retirees as they become due. Most salaried and non-bargaining hourly U.S. employees hired after March 1, 2006 participate in a defined contribution plan instead of a defined benefit plan.

Alcoa also maintains health care and life insurance benefit plans covering eligible U.S. retired employees and certain retirees from foreign locations. Generally, the medical plans pay a percentage of medical expenses, reduced by deductibles and other coverages. These plans are generally unfunded, except for certain benefits funded through a trust. Life benefits are generally provided by insurance contracts. Alcoa retains the right, subject to existing agreements, to change or eliminate these benefits. All salaried and certain non-bargaining hourly U.S. employees hired after January 1, 2002 and certain bargaining hourly U.S. employees hired after July 1, 2010 are not eligible for postretirement health care benefits. All salaried and certain hourly U.S. employees that retire on or after April 1, 2008 are not eligible for postretirement life insurance benefits.

The funded status of all of Alcoa’s pension and other postretirement benefit plans are measured as of December 31 each calendar year.

On June 24, 2010, the United Steelworkers ratified a new four-year labor agreement covering approximately 5,400 employees at 11 U.S. locations; the previous labor agreement expired on May 31, 2010. In 2010, as a result of the preparation for and ratification of the new agreement, Alcoa recognized $20 ($13 after-tax) in Cost of goods sold on the accompanying Statement of Consolidated Operations for strike preparation costs, a one-time signing bonus for employees, and an increase to pension net periodic benefit cost (see below). Additionally, as a result of the provisions of the new labor agreement, a significant plan amendment was adopted by one of Alcoa’s U.S. pension plans. Accordingly, this plan was required to be remeasured, and through this process, the discount rate was updated from 6.15% at December 31, 2009 to 5.95% at May 31, 2010. The plan remeasurement resulted in an increase to both Alcoa’s pension liability of $166 and the plan’s unrecognized net actuarial loss (included in other comprehensive loss) of $108 (after-tax). The plan remeasurement also resulted in an increase to 2010 net periodic benefit cost of $9.

Obligations and Funded Status


	Pension benefits						Other postretirement benefits
December 31,	2012			2011			2012			2011
Change in benefit obligation
Benefit obligation at beginning of year	$	13,526		$	12,343		$	2,844		$	2,902
Service cost		203			183			14			17
Interest cost		647			687			132			159
Amendments		6			40			-			(1	)
Actuarial losses		1,120			1,163			107			17
Settlements		-			(32	)		-			-
Curtailments		-			(7	)		-			-
Benefits paid, net of participants’ contributions		(833	)		(813	)		(256	)		(275	)
Medicare Part D subsidy receipts		-			-			21			25
Foreign currency translation impact		82			(38	)		1			-
Benefit obligation at end of year*	$	14,751		$	13,526		$	2,863		$	2,844
Change in plan assets
Fair value of plan assets at beginning of year	$	10,311		$	9,451		$	8		$	58
Actual return on plan assets		925			783			-			2
Employer contributions		571			945			-			-
Participants’ contributions		32			35			-			-
Benefits paid		(822	)		(805	)		(8	)		(52	)
Administrative expenses		(42	)		(38	)		-			-
Settlements		-			(34	)		-			-
Foreign currency translation impact		68			(26	)		-			-
Fair value of plan assets at end of year*	$	11,043		$	10,311		$	-		$	8
Funded status*	$	(3,708	)	$	(3,215	)	$	(2,863	)	$	(2,836	)
Less: Amounts attributed to joint venture partners		(40	)		(34	)		(4	)		(5	)
Net funded status	$	(3,668	)	$	(3,181	)	$	(2,859	)	$	(2,831	)
Amounts recognized in the Consolidated Balance Sheet consist of:
Noncurrent assets	$	86		$	109		$	-		$	-
Current liabilities		(32	)		(29	)		(256	)		(248	)
Noncurrent liabilities		(3,722	)		(3,261	)		(2,603	)		(2,583	)
Net amount recognized	$	(3,668	)	$	(3,181	)	$	(2,859	)	$	(2,831	)
Amounts recognized in Accumulated Other Comprehensive Loss consist of:
Net actuarial loss	$	5,880		$	5,191		$	593		$	511
Prior service cost (benefit)		119			129			(76	)		(92	)
Total, before tax effect		5,999			5,320			517			419
Less: Amounts attributed to joint venture partners		54			46			(1	)		(1	)
Net amount recognized, before tax effect	$	5,945		$	5,274		$	518		$	420
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss consist of:
Net actuarial loss	$	1,073		$	1,216		$	107		$	17
Amortization of accumulated net actuarial loss		(384	)		(246	)		(25	)		(26	)
Prior service cost (benefit)		9			42			-			(1	)
Amortization of prior service (cost) benefit		(19	)		(19	)		16			17
Total, before tax effect		679			993			98			7
Less: Amounts attributed to joint venture partners		8			10			-			(1	)
Net amount recognized, before tax effect	$	671		$	983		$	98		$	8

At December 31, 2012, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $11,521, $8,437, and $(3,084), respectively. At December 31, 2011, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $10,702, $7,988, and $(2,714), respectively.

Pension Plan Benefit Obligations


	Pension benefits
	2012		2011
The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows:
Projected benefit obligation	$	14,751	$	13,526
Accumulated benefit obligation		14,186		13,025

The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets was as follows:
Projected benefit obligation		13,973		12,828
Fair value of plan assets		10,142		9,470

The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets was as follows:
Accumulated benefit obligation		13,421		12,184
Fair value of plan assets		10,123		9,281

Components of Net Periodic Benefit Cost


	Pension benefits⁽¹⁾									Other postretirement benefits⁽²⁾
	2012			2011			2010			2012			2011			2010
Service cost	$	186		$	165		$	148		$	14		$	17		$	20
Interest cost		639			678			682			131			158			174
Expected return on plan assets		(808	)		(806	)		(787	)		-			(2	)		(7	)
Recognized net actuarial loss		384			247			181			25			26			33
Amortization of prior service cost (benefit)		19			19			17			(16	)		(17	)		(15	)
Settlements⁽³⁾		-			2			2			-			-			(3	)
Curtailments⁽⁴⁾		-			(9	)		(10	)		-			-			-
Net periodic benefit cost⁽⁵⁾	$	420		$	296		$	233		$	154		$	182		$	202

⁽¹⁾	In 2012, 2011, and 2010, net periodic benefit cost for U.S pension plans was $288, $190, and $155, respectively.

⁽²⁾	In 2012, 2011, and 2010, net periodic benefit cost for other postretirement benefits reflects a reduction of $64, $43, and $39, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D.

⁽³⁾	In all periods presented, settlements were due to the payment of significant lump sum benefits and/or purchases of annuity contracts.

⁽⁴⁾	In each period presented, curtailments were due to elimination of benefits or workforce reductions (see Note D).

⁽⁵⁾	Amounts attributed to joint venture partners are not included.

Amounts Expected to be Recognized in Net Periodic Benefit Cost


	Pension benefits		Other postretirement benefits
	2013		2013
Net actuarial loss recognition	$	494	$	36
Prior service cost (benefit) recognition		19		(18	)

Assumptions

Weighted average assumptions used to determine benefit obligations for U.S. pension and other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially):


December 31,	2012			2011
Discount rate		4.15	%		4.90	%
Rate of compensation increase		3.5			3.5

The discount rate is determined using a Company-specific yield curve model (above-median) developed with the assistance of an external actuary. The cash flows of the plans’ projected benefit obligations are discounted using a single equivalent rate derived from yields on high quality corporate bonds, which represent a broad diversification of issuers in various sectors, including finance and banking, manufacturing, transportation, insurance, and pharmaceutical, among others. The yield curve model parallels the plans’ projected cash flows, which have an average duration of 10 years, and the underlying cash flows of the bonds included in the model exceed the cash flows needed to satisfy the Company’s plans’ obligations multiple times.

The rate of compensation increase is based upon actual experience. For 2013, the rate of compensation increase will be 3.5%, which approximates the five-year average.

Weighted average assumptions used to determine net periodic benefit cost for U.S. pension and other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially):


	2012			2011			2010
Discount rate*		4.90	%		5.75	%		6.15	%
Expected long-term rate of return on plan assets		8.50			8.50			8.75
Rate of compensation increase		3.50			3.50			3.50

In all periods presented, the respective discount rates were used to determine net periodic benefit cost for most U.S. pension plans for the full annual period. However, the discount rates for a limited number of plans were updated during 2011 and 2010 to reflect the remeasurement of these plans due to new union labor agreements, settlements, and (or) curtailments. The updated discount rates used were not significantly different from the discount rates presented.

The expected long-term rate of return on plan assets is generally applied to a five-year market-related value of plan assets (a four-year average or the fair value at the plan measurement date is used for certain non-U.S. plans). The process used by management to develop this assumption has expanded from one that relied primarily on historical asset return information to one that also incorporates forward-looking returns by asset class, as described below.

Prior to developing the expected long-term rate of return for calendar year 2009, management focused on historical actual returns (annual, 10-year moving, and 20-year moving averages) when developing this assumption. Based on that process, management utilized 9% for the expected long-term rate of return for several years through 2008. For calendar year 2009, the expected long-term rate of return was reduced to 8.75% due to lower future expected market returns as a result of the then global economic downturn. This was supported by the fact that, in 2008, the 10-year moving average of actual performance fell below 9% for the first time in 20 years, although the 20-year moving average continued to exceed 9%.

For calendar year 2010, management expanded its process by incorporating expected future returns on current and planned asset allocations using information from various external investment managers and management’s own judgment. Management considered this forward-looking analysis as well as the historical return information, and concluded the expected rate of return for calendar 2010 would remain at 8.75%, which was between the 20-year moving average actual return performance and the estimated future return developed by asset class.

For calendar year 2012 and 2011, management again incorporated both actual historical return information and expected future returns into its analysis. Based on strategic asset allocation changes and estimates of future returns by asset class, management used 8.50% as its expected long-term rate of return for both years. This rate again falls within the range of the 20-year moving average of actual performance and the expected future return developed by asset class.

For calendar year 2013, management used the same methodology as it did for 2012 and 2011 and determined that 8.50% will be the expected long-term rate of return.

Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially):


	2012			2011			2010
Health care cost trend rate assumed for next year		6.0	%		6.5	%		6.5	%
Rate to which the cost trend rate gradually declines		4.5	%		5.0	%		5.0	%
Year that the rate reaches the rate at which it is assumed to remain		2017			2016			2015

The assumed health care cost trend rate is used to measure the expected cost of gross eligible charges covered by Alcoa’s other postretirement benefit plans. For 2013, a 6.0% trend rate will be used, reflecting management’s best estimate of the change in future health care costs covered by the plans. The plans’ actual annual health care cost trend experience over the past three years has ranged from (6.2)% to 3.8%. Management does not believe this three-year range is indicative of expected increases for future health care costs over the long-term.

Assumed health care cost trend rates have an effect on the amounts reported for the health care plan. A one-percentage point change in these assumed rates would have the following effects:


	1% increase		1% decrease
Effect on other postretirement benefit obligations	$	124	$	(114	)
Effect on total of service and interest cost components		5		(5	)

Plan Assets

Alcoa’s pension and other postretirement plans’ investment policy and weighted average asset allocations at December 31, 2012 and 2011, by asset class, were as follows:


				Plan assets at December 31,
Asset class	Policy range			2012			2011
Equities		20–55	%		33	%		34	%
Fixed income		25–55	%		50			50
Other investments		15–35	%		17			16
Total					100	%		100	%

The principal objectives underlying the investment of the pension and other postretirement plans’ assets are to ensure that Alcoa can properly fund benefit obligations as they become due under a broad range of potential economic and financial scenarios, maximize the long-term investment return with an acceptable level of risk based on such obligations, and broadly diversify investments across and within the capital markets to protect asset values against adverse movements. Specific objectives for long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities and achieving risk factor diversification across the balance of the asset portfolio. A portion of the assets are matched to the interest rate profile of the benefit obligation through long duration fixed income investments and exposure to broad equity risk has been decreased and diversified through investments in macro hedge funds, equity long and short hedge funds, global and emerging market equities, and gold. Investments are further diversified by strategy, asset class, geography, and sector to enhance returns and mitigate downside risk. A large number of external investment managers are used to gain broad exposure to the financial markets and to mitigate manager-concentration risk.

Investment practices comply with the requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and any other applicable laws and regulations. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, the use of derivative instruments is not significant when compared to the overall investment portfolio.

In the course of managing the pension and other postretirement plans’ assets, trustees of the plans loan securities to brokers/dealers in exchange for a fee. The securities are subsequently returned to the plans in accordance with the brokerage agreement. In support of these transactions, the brokers/dealers provide collateral, which exceeds the value of the securities loaned (102%-105%).

The following section describes the valuation methodologies used by the trustees to measure the fair value of pension and other postretirement benefit plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note X for the definition of fair value and a description of the fair value hierarchy).

Equities. These securities consist of direct investments in the stock of publicly traded U.S. and non-U.S. companies and are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are generally classified in Level 1. Also, these securities consist of the plans’ share of commingled funds that are invested in the stock of publicly traded companies and are valued at the net asset value of shares held at December 31. As such, these securities are included in Level 1 if quoted in an active market, otherwise these investments are included in Level 2. Additionally, these securities include direct investments in short and long equity hedge funds and private equity (limited partnerships and venture capital partnerships) and are valued by investment managers based on the most recent financial information available, which typically represents significant unobservable data. As such, these investments are generally classified as Level 3.

Fixed income. These securities consist of U.S. government debt and are generally valued using quoted prices. As such, these securities are included in Level 1. Also, these securities include publicly traded U.S. and non-U.S. fixed interest obligations (principally corporate bonds and debentures) and are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data. As such, these investments are included in Level 2. Additionally, these securities include cash and cash equivalents, which consist of government securities in commingled funds, and are generally valued using observable market data. As such, these funds are included in Level 2. Furthermore, these securities consist of commercial and residential mortgage-backed securities and are valued by investment managers based on the most recent financial information available, which typically represents significant unobservable data. As such, these investments are generally classified as Level 3.

Other investments. These investments include, among others, exchange traded funds, macro hedge funds, real estate investment trusts, and direct investments of private real estate. Exchange traded funds, such as gold, and real estate investment trusts are valued based on the closing price reported in an active market on which the investments are traded, and, therefore, are included in Level 1. Also, these securities consist of the plans’ share of commingled funds that are invested in real estate investment trusts and are valued at the net asset value of shares held at December 31. As such, these securities are generally included in Level 2. Direct investments of macro hedge funds and private real estate (includes limited partnerships) are valued by investment managers based on the most recent financial information available, which typically represents significant unobservable data. As such, these investments are generally classified as Level 3. If fair value is able to be determined through the use of quoted market prices of similar assets or other observable market data, then the investments are classified in Level 2.

The fair value methods described above may not be indicative of net realizable value or reflective of future fair values. Additionally, while Alcoa believes the valuation methods used by the plans’ trustees are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table presents the fair value of pension and other postretirement plans’ assets classified under the appropriate level of the fair value hierarchy:


December 31, 2012	Level 1		Level 2		Level 3		Total
Equities:
Equity securities	$	1,016	$	1,196	$	117	$	2,329
Short and long equity hedge funds		-		-		756		756
Private equity		-		-		550		550
	$	1,016	$	1,196	$	1,423	$	3,635
Fixed income:
Intermediate and long duration government/credit	$	1,169	$	3,689	$	215	$	5,073
Other		-		507		-		507
	$	1,169	$	4,196	$	215	$	5,580
Other investments:
Real estate	$	113	$	83	$	377	$	573
Macro hedge funds		-		-		796		796
Other		212		-		247		459
	$	325	$	83	$	1,420	$	1,828
Total	$	2,510	$	5,475	$	3,058	$	11,043

December 31, 2011	Level 1		Level 2		Level 3		Total
Equities
Equity securities*	$	904	$	1,203	$	110	$	2,217
Short and long equity hedge funds		-		-		731		731
Private equity		-		-		542		542
	$	904	$	1,203	$	1,383	$	3,490
Fixed income:
Intermediate and long duration government/credit	$	1,223	$	3,540	$	211	$	4,974
Other		-		340		-		340
	$	1,223	$	3,880	$	211	$	5,314
Other investments:
Real estate	$	97	$	74	$	375	$	546
Macro hedge funds		-		-		668		668
Other		198		-		123		321
	$	295	$	74	$	1,166	$	1,535
Total**	$	2,422	$	5,157	$	2,760	$	10,339

*	At December 31, 2011, Level 1 equity securities include $36 of Alcoa common stock related to the January 2011 plan contribution (see Funding and Cash Flows section below).

**	As of December 31, 2011, the total fair value of pension and other postretirement plans’ assets excludes a net payable of $20, which represents securities purchased not yet settled less interest and dividends earned on various investments.

Pension and other postretirement benefit plans’ assets classified as Level 3 in the fair value hierarchy represent investments in which the trustees have used significant unobservable inputs in the valuation model. The following table presents a reconciliation of activity for such investments:


	2012			2011
Balance at beginning of year	$	2,760		$	1,499
Realized gains		52			67
Unrealized gains		142			100
Purchases		634			1,221
Sales		(538	)		(124	)
Issuances		-			-
Settlements		-			-
Foreign currency translation impact		8			(3	)
Transfers in and (or) out of Level 3*		-			-
Balance at end of year	$	3,058		$	2,760

*	In 2012 and 2011, there were no transfers of financial instruments into or out of Level 3

Funding and Cash Flows

It is Alcoa’s policy to fund amounts for pension plans sufficient to meet the minimum requirements set forth in applicable country benefits laws and tax laws, including the Pension Protection Act of 2006, the Worker, Retiree, and Employer Recovery Act of 2008, and the Moving Ahead for Progress in the 21^st Century Act for U.S. plans. From time to time, Alcoa contributes additional amounts as deemed appropriate. In 2012 and 2011, cash contributions to Alcoa’s pension plans were $561 and $336. Also in 2011, Alcoa contributed newly issued shares (see Note R) of its common stock (valued at $600) to a master trust that holds the assets of certain U.S. defined benefit pension plans in a private placement transaction. These shares were issued to satisfy the estimated minimum required funding and to provide additional funding towards maintaining an approximately 80% funded status of Alcoa’s U.S. pension plans. The minimum required contribution to pension plans in 2013 is estimated to be $460, of which $140 is for non-U.S. plans.

Benefit payments expected to be paid to pension and other postretirement benefit plans’ participants and expected Medicare Part D subsidy receipts are as follows:


Year ended December 31,	Pension benefits		Gross Other post- retirement benefits		Medicare Part D subsidy receipts		Net Other post- retirement benefits
2013	$	880	$	285	$	30	$	255
2014		870		280		30		250
2015		880		280		30		250
2016		890		275		30		245
2017		910		270		35		235
2018 through 2022		4,620		1,200		170		1,030
	$	9,050	$	2,590	$	325	$	2,265

Defined Contribution Plans

Alcoa sponsors savings and investment plans in several countries, including the U.S. and Australia. Expenses related to these plans were $146 in 2012, $139 in 2011, and $119 in 2010. In the U.S., employees may contribute a portion of their compensation to the plans, and Alcoa matches, mostly in company stock, a portion of these contributions.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Derivatives and Other Financial Instruments

12 Months Ended

Dec. 31, 2012

Derivatives and Other Financial Instruments

X. Derivatives and Other Financial Instruments

Derivatives. Alcoa is exposed to certain risks relating to its ongoing business operations, including financial, market, political, and economic risks. The following discussion provides information regarding Alcoa’s exposure to the risks of changing commodity prices, interest rates, and foreign currency exchange rates.

Alcoa’s commodity and derivative activities are subject to the management, direction, and control of the Strategic Risk Management Committee (SRMC), which is composed of the chief executive officer, the chief financial officer, and other officers and employees that the chief executive officer selects. The SRMC meets on a periodic basis to review derivative positions and strategy and reports to Alcoa’s Board of Directors on the scope of its activities.

The aluminum, energy, interest rate, and foreign exchange contracts are held for purposes other than trading. They are used primarily to mitigate uncertainty and volatility, and to cover underlying exposures. Alcoa is not involved in trading activities for energy, weather derivatives, or other nonexchange commodity trading activities.

The fair values and corresponding classifications under the appropriate level of the fair value hierarchy of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet were as follows:


Asset Derivatives	Level		December 31, 2012		December 31, 2011
Derivatives designated as hedging instruments:
Prepaid expenses and other current assets:
Aluminum contracts		1	$	23	$	51
Aluminum contracts		3		7		5
Interest rate contracts		2		8		8
Other noncurrent assets:
Aluminum contracts		1		3		6
Energy contracts		3		3		2
Interest rate contracts		2		37		37
Total derivatives designated as hedging instruments			$	81	$	109
Derivatives not designated as hedging instruments*:
Prepaid expenses and other current assets:
Aluminum contracts		2	$	-	$	1
Aluminum contracts		3		211		-
Other noncurrent assets:
Aluminum contracts		3		329		5
Foreign exchange contracts		1		1		1
Total derivatives not designated as hedging instruments			$	541	$	7
Less margin held**:
Prepaid expenses and other current assets:
Aluminum contracts		1	$	9	$	7
Interest rate contracts		2		8		8
Other noncurrent assets:
Interest rate contracts		2		9		7
Sub-total			$	26	$	22
Total Asset Derivatives			$	596	$	94

*	See the “Other” section within Note X for additional information on Alcoa’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies.

All margin held is in the form of cash and is valued under a Level 1 technique. The levels that correspond to the margin held in the table above reference the level of the corresponding asset for which it is held. Alcoa elected to net the margin held against the fair value amounts recognized for derivative instruments executed with the same counterparties under master netting arrangements.

The fair values and corresponding classifications under the appropriate level of the fair value hierarchy of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet were as follows:


Liability Derivatives	Level		December 31, 2012		December 31, 2011
Derivatives designated as hedging instruments:
Other current liabilities:
Aluminum contracts		1	$	13	$	47
Aluminum contracts		3		35		32
Other noncurrent liabilities and deferred credits:
Aluminum contracts		1		1		4
Aluminum contracts		3		573		570
Total derivatives designated as hedging instruments			$	622	$	653
Derivatives not designated as hedging instruments*:
Other current liabilities:
Aluminum contracts		1	$	1	$	12
Aluminum contracts		2		21		23
Embedded credit derivative		3		3		-
Other noncurrent liabilities and deferred credits:
Aluminum contracts		1		-		1
Aluminum contracts		2		5		21
Embedded credit derivative		3		27		28
Total derivatives not designated as hedging instruments			$	57	$	85
Less margin posted**:
Other current liabilities:
Aluminum contracts		1	$	-	$	1
Total Liability Derivatives			$	679	$	737

*	See the “Other” section within Note X for additional information on Alcoa’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies.

All margin posted is in the form of cash and is valued under a Level 1 technique. The levels that correspond to the margin posted in the table above reference the level of the corresponding liability for which it is posted. Alcoa elected to net the margin posted against the fair value amounts recognized for derivative instruments executed with the same counterparties under master netting arrangements.

The following table shows the net fair values of outstanding derivative contracts at December 31, 2012 and the effect on these amounts of a hypothetical change (increase or decrease of 10%) in the market prices or rates that existed at December 31, 2012:


	Fair value asset/(liability)			Index change of + / - 10%
Aluminum contracts	$	(85	)	$	111
Embedded credit derivative		(30	)		3
Energy contracts		3			249
Foreign exchange contracts		1			8
Interest rate contracts		28			1

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

•

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

•

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•

Level 3—Inputs that are both significant to the fair value measurement and unobservable.

The following section describes the valuation methodologies used by Alcoa to measure derivative contracts at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Where appropriate, the description includes details of the valuation models, the key inputs to those models, and any significant assumptions. These valuation models are reviewed and tested at least on an annual basis.

Derivative contracts are valued using quoted market prices and significant other observable and unobservable inputs. Such financial instruments consist of aluminum, energy, interest rate, and foreign exchange contracts. The fair values for the majority of these derivative contracts are based upon current quoted market prices. These financial instruments are typically exchange-traded and are generally classified within Level 1 or Level 2 of the fair value hierarchy depending on whether the exchange is deemed to be an active market or not.

For certain derivative contracts whose fair values are based upon trades in liquid markets, such as interest rate swaps, valuation model inputs can generally be verified through over-the-counter markets and valuation techniques do not involve significant management judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy.

Alcoa has other derivative contracts that do not have observable market quotes. For these financial instruments, management uses significant other observable inputs (e.g., information concerning time premiums and volatilities for certain option type embedded derivatives and regional premiums for aluminum contracts). For periods beyond the term of quoted market prices for aluminum, Alcoa uses a model that estimates the long-term price of aluminum by extrapolating the 10-year London Metal Exchange (LME) forward curve. For periods beyond the term of quoted market prices for energy, management has developed a forward curve based on independent consultant market research. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence (Level 2). In the absence of such evidence, management’s best estimate is used (Level 3). If a significant input that is unobservable in one period becomes observable in a subsequent period, the related asset or liability would be transferred to the appropriate level classification (1 or 2) in the period of such change.

The following table presents Alcoa’s derivative contract assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy (there were no transfers in or out of Levels 1 and 2 during the periods presented):


December 31,	2012			2011
Assets:
Level 1	$	27		$	57
Level 2		45			47
Level 3		550			12
Margin held		(26	)		(22	)
Total	$	596		$	94
Liabilities:
Level 1	$	15		$	64
Level 2		26			44
Level 3		638			630
Margin posted		-			(1	)
Total	$	679		$	737

Financial instruments classified as Level 3 in the fair value hierarchy represent derivative contracts in which management has used at least one significant unobservable input in the valuation model. The following tables present a reconciliation of activity for such derivative contracts:


	Assets					Liabilities
2012	Aluminum contracts			Energy contracts		Aluminum contracts			Embedded credit derivative			Energy contracts
Opening balance—January 1, 2012	$	10		$	2	$	602		$	28		$	-
Total gains or losses (realized and unrealized) included in:
Sales		(8	)		-		(33	)		-			-
Cost of goods sold		(107	)		-		-			(1	)		-
Other income, net		16			-		-			3			-
Other comprehensive loss		10			1		39			-			-
Purchases, sales, issuances, and settlements*		596			-		-			-			-
Transfers into and (or) out of Level 3*		-			-		-			-			-
Foreign currency translation		30			-		-			-			-
Closing balance—December 31, 2012	$	547		$	3	$	608		$	30		$	-
Change in unrealized gains or losses included in earnings for derivative contracts held at December 31, 2012:
Sales	$	-		$	-	$	-		$	-		$	-
Cost of goods sold		-			-		-			-			-
Other income, net		16			-		-			3			-

In July 2012, two embedded derivatives contained within existing power contracts became subject to derivative accounting under GAAP (see below). The amount reflected in this table represents the initial fair value of these embedded derivatives and was classified as an issuance of Level 3 financial instruments. There were no purchases, sales or settlements of Level 3 financial instruments. Additionally, there were no transfers of financial instruments into or out of Level 3.


	Assets					Liabilities
2011	Aluminum contracts		Energy contracts			Aluminum contracts			Embedded credit derivative			Energy contracts
Opening balance—January 1, 2011	$	-	$	9		$	702		$	24		$	62
Total gains or losses (realized and unrealized) included in:
Sales		-		-			(63	)		-			-
Cost of goods sold		-		-			-			(1	)		(14	)
Other income, net		-		-			-			5			(48	)
Other comprehensive loss		5		(7	)		(37	)		-			-
Purchases, sales, issuances, and settlements**		5		-			-			-			-
Transfers into and (or) out of Level 3**		-		-			-			-			-
Foreign currency translation		-		-			-			-			-
Closing balance—December 31, 2011	$	10	$	2		$	602		$	28		$	-
Change in unrealized gains or losses included in earnings for derivative contracts held at December 31, 2011:
Sales	$	-	$	-		$	-		$	-		$	-
Cost of goods sold		-		-			-			-			-
Other income, net		-		-			-			5			-

**	In 2011, there was an issuance of a Level 3 financial instrument related to a natural gas supply contract (see below). There were no purchases, sales, or settlements of Level 3 financial instruments. Additionally, there were no transfers of financial instruments into or out of Level 3.

As reflected in the table above, the net unrealized loss on derivative contracts using Level 3 valuation techniques was $88 and $618 as of December 31, 2012 and 2011, respectively. These losses were mainly attributed to embedded derivatives in power contracts that index the price of power to the LME price of aluminum. These embedded derivatives are primarily valued using observable market prices; however, due to the length of the contracts, the valuation model also requires management to estimate the long-term price of aluminum based upon an extrapolation of the 10-year LME forward curve. Significant increases or decreases in the actual LME price beyond 10 years would result in a higher or lower fair value measurement. An increase of actual LME price over the inputs used in the valuation model will result in a higher cost of power and a corresponding increase to the liability. The embedded derivatives have been designated as hedges of forward sales of aluminum and related realized gains and losses were included in Sales on the accompanying Statement of Consolidated Operations.

In July 2012, as provided for in the arrangements, management elected to modify the pricing for two existing power contracts, which end in 2014 and 2016 (see directly below), for Alcoa’s two smelters in Australia and the Point Henry rolling mill in Australia. These contracts contain an LME-linked embedded derivative, which previously was not recorded as an asset in Alcoa’s Consolidated Balance Sheet. Beginning on January 1, 2001, all derivative contracts were required to be measured and recorded at fair value on an entity’s balance sheet under GAAP; however, an exception existed for embedded derivatives upon meeting certain criteria. The LME-linked embedded derivative in these two contracts met such criteria at that time. Management’s election to modify the pricing of these contracts qualifies as a significant change to the contracts thereby requiring that the contracts now be evaluated under derivative accounting as if they were new contracts. As a result, Alcoa recorded a derivative asset in the amount of $596 (reflects the finalization of the valuation model) with an offsetting liability (deferred credit) recorded in Other current and non-current liabilities. Unrealized gains and losses from the embedded derivative were included in Other (income) expenses, net on the accompanying Statement of Consolidated Operations, while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations as electricity purchases are made under the contracts. The deferred credit is recognized in Other (income) expenses, net on the accompanying Statement of Consolidated Operations as power is received over the life of the contracts. The embedded derivative is valued using the probability and interrelationship of future LME prices, Australian dollar to U.S. dollar exchange rates, and the U.S. consumer price index. Significant increases or decreases in the LME price would result in a higher or lower fair value measurement. An increase in actual LME price over the inputs used in the valuation model will result in a higher cost of power and a decrease to the embedded derivative asset.

In 2010, Alcoa entered into derivative contracts that will hedge the anticipated power requirements at Alcoa’s two smelters in Australia once the existing contracts expire in 2014 and 2016. These derivatives hedge forecasted power purchases through December 2036. Beyond the term where market information is available, management has developed a forward curve, for valuation purposes, based on independent consultant market research. The effective portion of gains and losses on these contracts were recorded in Other comprehensive (loss) income on the accompanying Consolidated Balance Sheet until the designated hedge periods begin in 2014 and 2016. Once the hedge periods begin, realized gains and losses will be recorded in Cost of goods sold. Significant increases or decreases in the power market may result in a higher or lower fair value measurement. Higher prices in the power market would cause the derivative asset to increase in value.

Also, Alcoa has a six-year natural gas supply contract, which has an LME-linked ceiling. This contract is valued using probabilities of future LME aluminum prices and the price of Brent crude oil (priced on Platts), including the interrelationships between the two commodities subject to the ceiling. Any change in the interrelationship would result in a higher or lower fair value measurement. An LME ceiling was embedded into the contract price to protect against an increase in the price of oil without a corresponding increase in the price of LME. An increase in oil prices with no similar increase in the LME price would limit the increase of the price paid for natural gas. At inception, this contract had a fair value of $5. Unrealized gains and losses from this contract were included in Other (income) expenses, net on the accompanying Statement of Consolidated Operations, while realized gains and losses will be included in Cost of goods sold on the accompanying Statement of Consolidated Operations as gas purchases are made under the contract.

Additionally, an embedded derivative in a power contract that indexes the difference between the long-term debt ratings of Alcoa and the counterparty from any of the three major credit rating agencies is included in Level 3. Management uses market prices, historical relationships, and forecast services to determine fair value. Significant increases or decreases in any of these inputs would result in a lower or higher fair value measurement. A wider credit spread between Alcoa and the counterparty would result in an increase of the future liability and a higher cost of power. Realized gains and losses for this embedded derivative were included in Cost of goods sold on the accompanying Statement of Consolidated Operations and unrealized gains and losses were included in Other (income) expenses, net on the accompanying Statement of Consolidated Operations.

Furthermore, included within Level 3 measurements are derivative financial instruments that hedge the cost of electricity. Transactions involving on-peak power are observable as there is an active market. However, there are certain off-peak times when there is not an actively traded market for electricity. Therefore, management utilizes market prices, historical relationships, and various forecast services to determine the fair value. Management utilized these same valuation techniques for an existing power contract associated with a smelter in the U.S. that no longer qualified for the normal purchase normal sale exception under derivative accounting in late 2009. Unrealized gains and losses for this physical power contract were included in Other (income) expenses, net on the accompanying Statement of Consolidated Operations, while realized gains and losses were included in Cost of goods sold on the accompanying Statement of Consolidated Operations. Additionally, a financial contract related to the same U.S. smelter utilized by management to hedge the price of electricity of the aforementioned power contract no longer qualified for cash flow hedge accounting near the end of 2009. Realized gains and losses of this financial contract were included in Cost of goods sold on the accompanying Statement of Consolidated Operations. In periods prior to January 1, 2010, unrealized gains and losses were included in Other comprehensive (loss) income; in periods subsequent to December 31, 2009, such changes were included in Other (income) expenses, net on the accompanying Statement of Consolidated Operations. Both the physical power contract and the financial contract related to this U.S. smelter expired in September 2011.

The following table presents quantitative information for Level 3 derivative contracts:


	Fair value at December 31, 2012*		Valuation technique	Unobservable input	Range ($ in full amounts)
Assets:
Aluminum contract	$	2	Discounted cash flow	Interrelationship of future aluminum and oil prices	Aluminum: $2,037 per metric ton in 2013 to $2,542 per metric ton in 2018 Oil: $90 to $111 per barrel
Aluminum contract		537	Discounted cash flow	Interrelationship of future aluminum prices, foreign currency exchange rates, and the U.S. consumer price index (CPI)	Aluminum: $2,046 per metric ton in 2013 to $2,400 per metric ton in 2016 Foreign currency: A$1 = $1.03 in 2013 to $0.94 in 2016 CPI: 1982 base year of 100 and 232 in 2013 to 254 in 2016
Energy contracts		3	Discounted cash flow	Price of electricity beyond forward curve	$78 per megawatt hour in 2013 to $170 per megawatt hour in 2036
Liabilities:
Aluminum contracts		600	Discounted cash flow	Price of aluminum beyond forward curve	$2,790 per metric ton in 2023 to $3,002 per metric ton in 2027
Embedded credit derivative		30	Discounted cash flow	Credit spread between Alcoa and counterparty	1.63% to 1.91% (1.77% median)

The fair value of aluminum contracts reflected as assets and liabilities in this table are both lower by $8 compared to the respective amounts reflected in the Level 3 reconciliation presented above. This is due to the fact that Alcoa has a contract that is in an asset position for the current portion but is in a liability position for the long-term portion, and is reflected as such on the accompanying Consolidated Balance Sheet. However, this contract is reflected as a net liability in this table for purposes of presenting the fair value technique and assumptions utilized to measure the contract as a whole.

Fair Value Hedges

For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. The gain or loss on the hedged items are included in the same line items as the loss or gain on the related derivative contracts as follows (there were no contracts that ceased to qualify as a fair value hedge in any of the periods presented):


Derivatives in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in Earnings on Derivatives		Amount of Gain or (Loss) Recognized in Earnings on Derivatives
Derivatives in Fair Value Hedging Relationships			2012			2011			2010
Aluminum contracts*		Sales	$	(9	)	$	(126	)	$	38
Interest rate contracts		Interest expense		10			64			90
Total			$	1		$	(62	)	$	128

Hedged Items in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in Earnings on Hedged Items		Amount of Gain or (Loss) Recognized in Earnings on Hedged Items
Hedged Items in Fair Value Hedging Relationships			2012			2011			2010
Aluminum contracts		Sales	$	(9	)	$	133		$	(41	)
Interest rate contracts		Interest expense		(10	)		(31	)		(62	)
Total			$	(19	)	$	102		$	(103	)

*	In 2012, 2011, and 2010, the amount of gain or (loss) recognized in earnings represents $(18), $7, and $(3), respectively, related to the ineffective portion of the hedging relationships.

Aluminum. Alcoa is a leading global producer of primary aluminum and fabricated aluminum products. As a condition of sale, customers often require Alcoa to enter into long-term, fixed-price commitments. These commitments expose Alcoa to the risk of fluctuating aluminum prices between the time the order is committed and the time that the order is shipped. Alcoa’s aluminum commodity risk management policy is to manage, principally through the use of futures and contracts, the aluminum price risk associated with a portion of its firm commitments. These contracts cover known exposures, generally within three years. As of December 31, 2012, Alcoa had 386 kmt of aluminum futures designated as fair value hedges. The effects of this hedging activity will be recognized over the designated hedge periods in 2013 to 2016.

Interest Rates. Alcoa uses interest rate swaps to help maintain a strategic balance between fixed- and floating-rate debt and to manage overall financing costs. As of December 31, 2012, the Company had pay floating, receive fixed interest rate swaps that were designated as fair value hedges. These hedges effectively convert the interest rate from fixed to floating on $200 of debt through 2018. In January 2012, interest rate swaps with a notional amount of $315 expired in conjunction with the repayment of 6% Notes, due 2012 (see Note K).

In 2011, Alcoa terminated interest rate swaps with a notional amount of $550 in conjunction with the early retirement of the related debt (see Note K). At the time of termination, the swaps were “in-the-money” resulting in a gain of $33, which was recorded in Interest expense on the accompanying Statement of Consolidated Operations. In 2010, Alcoa terminated all or a portion of various interest rate swaps with a notional amount of $825 in conjunction with the early retirement of the related debt. At the time of termination, the swaps were “in-the-money” resulting in a gain of $28, which was recorded in Interest expense on the accompanying Statement of Consolidated Operations.

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.


Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)									Location of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)*									Location of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)**
	2012			2011			2010				2012			2011			2010				2012			2011		2010
Aluminum contracts	$	(10	)	$	72		$	(6	)	Sales	$	36		$	(114	)	$	(106	)	Other (income) expenses, net	$	(1	)	$	2	$	-
Energy contracts		-			(3	)		(10	)	Cost of goods sold		-			(8	)		(25	)	Other (income) expenses, net		-			-		-
Foreign exchange contracts		-			1			(3	)	Sales		-			4			(6	)	Other (income) expenses, net		-			-		-
Interest rate contracts		-			(2	)		(1	)	Interest expense		(2	)		-			(1	)	Other (income) expenses, net		-			-		-
Interest rate contracts		(2	)		(5	)		(1	)	Other (income) expenses, net		-			(3	)		-		Other (income) expenses, net		-			-		-
Total	$	(12	)	$	63		$	(21	)		$	34		$	(121	)	$	(138	)		$	(1	)	$	2	$	-

*	Assuming market rates remain constant with the rates at December 31, 2012, a loss of $23 is expected to be recognized in earnings over the next 12 months.

In 2012 and 2011, the amount of gain or (loss) recognized in earnings represents $(1) and $3, respectively, related to the amount excluded from the assessment of hedge effectiveness. There was also $(1) and less than $1 recognized in earnings related to the ineffective portion of the hedging relationships in 2011 and 2010, respectively.

Aluminum and Energy. Alcoa anticipates the continued requirement to purchase aluminum and other commodities, such as electricity and natural gas, for its operations. Alcoa enters into forwards, futures, and options contracts to reduce volatility in the price of these commodities. Alcoa has also entered into power supply and other contracts that contain pricing provisions related to the LME aluminum price. The LME-linked pricing features are considered embedded derivatives. A majority of these embedded derivatives have been designated as cash flow hedges of future sales of aluminum.

In 2010, Alcoa entered into contracts to hedge the anticipated power requirements at two smelters in Australia. These derivatives hedge forecasted power purchases through December 2036.

Interest Rates. Alcoa had no outstanding cash flow hedges of interest rate exposures as of December 31, 2012, 2011 or 2010. An investment accounted for on the equity method by Alcoa has entered into interest rate contracts, which are designated as cash flow hedges. Alcoa’s share of the activity of these cash flow hedges is reflected in the table above.

Foreign Exchange. Alcoa is subject to exposure from fluctuations in foreign currency exchange rates. Contracts may be used from time to time to hedge the variability in cash flows from the forecasted payment or receipt of currencies other than the functional currency. These contracts cover periods consistent with known or expected exposures through 2013.

Alcoa had the following outstanding forward contracts that were entered into to hedge forecasted transactions:


December 31,	2012		2011
Aluminum contracts (kmt)		1,120		1,294
Energy contracts:
Electricity (megawatt hours)		100,578,295		100,578,295
Natural gas (million British thermal units)		19,160,000		-
Foreign exchange contracts	$	71	$	-

Other

Alcoa has certain derivative contracts that do not qualify for hedge accounting treatment and, therefore, the fair value gains and losses on these contracts are recorded in earnings as follows:


Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Earnings on Derivatives	Amount of Gain or (Loss) Recognized in Earnings on Derivatives
Derivatives Not Designated as Hedging Instruments		2012			2011			2010
Aluminum contracts	Sales	$	-		$	(13	)	$	5
Aluminum contracts	Other (income) expenses, net		16			13			(18	)
Embedded credit derivative	Other (income) expenses, net		(3	)		(5	)		(2	)
Energy contract	Other (income) expenses, net		-			47			(23	)
Foreign exchange contracts	Other (income) expenses, net		-			(3	)		6
Total		$	13		$	39		$	(32	)

The aluminum contracts relate to derivatives (recognized in Sales) and embedded derivatives (recognized in Other (income) expenses, net) entered into to minimize Alcoa’s price risk related to other customer sales and certain pricing arrangements.

The embedded credit derivative relates to a power contract that indexes the difference between the long-term debt ratings of Alcoa and the counterparty from any of the three major credit rating agencies. If the counterparty’s lowest credit rating is greater than one rating category above Alcoa’s credit ratings, an independent investment banker would be consulted to determine a hypothetical interest rate for both parties. The two interest rates would be netted and the resulting difference would be multiplied by Alcoa’s equivalent percentage of the outstanding principal of the counterparty’s debt obligation as of December 31 of the year preceding the calculation date. This differential would be added to the cost of power in the period following the calculation date.

The energy contract is associated with a smelter in the U.S. for a power contract that no longer qualified for the normal purchase normal sale exception and a financial contract that no longer qualified as a hedge under derivative accounting in late 2009. Alcoa’s obligations under the contracts expired in September 2011.

Alcoa has a forward contract to purchase $58 (C$58) to mitigate the foreign currency risk related to a Canadian-denominated loan due in 2014. All other foreign exchange contracts were entered into and settled within each of the periods presented.

Material Limitations

The disclosures with respect to commodity prices, interest rates, and foreign currency exchange risk do not take into account the underlying commitments or anticipated transactions. If the underlying items were included in the analysis, the gains or losses on the futures contracts may be offset. Actual results will be determined by a number of factors that are not under Alcoa’s control and could vary significantly from those factors disclosed.

Alcoa is exposed to credit loss in the event of nonperformance by counterparties on the above instruments, as well as credit or performance risk with respect to its hedged customers’ commitments. Although nonperformance is possible, Alcoa does not anticipate nonperformance by any of these parties. Contracts are with creditworthy counterparties and are further supported by cash, treasury bills, or irrevocable letters of credit issued by carefully chosen banks. In addition, various master netting arrangements are in place with counterparties to facilitate settlement of gains and losses on these contracts.

Other Financial Instruments. The carrying values and fair values of Alcoa’s other financial instruments were as follows:


December 31,	2012				2011
December 31,	Carrying value		Fair value		Carrying value		Fair value
Cash and cash equivalents	$	1,861	$	1,861	$	1,939	$	1,939
Restricted cash		189		189		25		25
Noncurrent receivables		20		20		30		30
Available-for-sale securities		67		67		92		92
Short-term borrowings		53		53		62		62
Commercial paper		-		-		224		224
Long-term debt due within one year		465		465		445		445
Long-term debt, less amount due within one year		8,311		9,028		8,640		9,274

The following methods were used to estimate the fair values of other financial instruments:

Cash and cash equivalents, Restricted cash, Short-term borrowings, Commercial paper, and Long-term debt due within one year. The carrying amounts approximate fair value because of the short maturity of the instruments. The fair value amounts for Cash and cash equivalents, Restricted cash, and Commercial paper were classified in Level 1; Short-term borrowings were classified in Level 2; and Long-term debt due within one year was classified in Level 1 of the fair value hierarchy for public debt ($422) and Level 2 of the fair value hierarchy for non-public debt ($43).

Noncurrent receivables. The fair value of noncurrent receivables was based on anticipated cash flows, which approximates carrying value, and was classified in Level 2 of the fair value hierarchy.

Available-for-sale securities. The fair value of such securities was based on quoted market prices. These financial instruments consist of exchange-traded fixed income and equity securities, which are carried at fair value and were classified in Level 1 of the fair value hierarchy.

Long-term debt, less amount due within one year. The fair value was based on quoted market prices for public debt and on interest rates that are currently available to Alcoa for issuance of debt with similar terms and maturities for non-public debt. At December 31, 2012 and 2011, $8,456 and $8,576, respectively, was classified in Level 1 of the fair value hierarchy for public debt and $572 and $698, respectively, was classified in Level 2 of the fair value hierarchy for non-public debt.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

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+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2012
Subsequent Events	Y. Subsequent Events Management evaluated all activity of Alcoa and concluded that no subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements.

Quarterly Data

12 Months Ended

Dec. 31, 2012

Quarterly Data

Supplemental Financial Information (unaudited)

Quarterly Data

(in millions, except per-share amounts)


	First			Second			Third			Fourth			Year
2012
Sales	$	6,006		$	5,963		$	5,833		$	5,898		$	23,700

Amounts attributable to Alcoa common shareholders:
Income (loss) from continuing operations	$	94		$	(2	)	$	(143	)	$	242		$	191
Loss from discontinued operations		-			-			-			-			-
Net income (loss)	$	94		$	(2	)	$	(143	)	$	242		$	191
Earnings per share attributable to Alcoa common shareholders*:
Basic:
Income (loss) from continuing operations	$	0.09		$	-		$	(0.13	)	$	0.23		$	0.18
Loss from discontinued operations		-			-			-			-			-
Net income (loss)	$	0.09		$	-		$	(0.13	)	$	0.23		$	0.18
Diluted:
Income (loss) from continuing operations	$	0.09		$	-		$	(0.13	)	$	0.21		$	0.18
Loss from discontinued operations		-			-			-			-			-
Net income (loss)	$	0.09		$	-		$	(0.13	)	$	0.21		$	0.18
2011
Sales	$	5,958		$	6,585		$	6,419		$	5,989		$	24,951

Amounts attributable to Alcoa common shareholders:
Income (loss) from continuing operations	$	309		$	326		$	172		$	(193	)	$	614
(Loss) income from discontinued operations		(1	)		(4	)		-			2			(3	)
Net income (loss)	$	308		$	322		$	172		$	(191	)	$	611
Earnings per share attributable to Alcoa common shareholders*:
Basic:
Income (loss) from continuing operations	$	0.29		$	0.31		$	0.16		$	(0.18	)	$	0.58
(Loss) income from discontinued operations		-			(0.01	)		-			-			(0.01	)
Net income (loss)	$	0.29		$	0.30		$	0.16		$	(0.18	)	$	0.57
Diluted:
Income (loss) from continuing operations	$	0.27		$	0.28		$	0.15		$	(0.18	)	$	0.55
(Loss) income from discontinued operations		-			-			-			-			-
Net income (loss)	$	0.27		$	0.28		$	0.15		$	(0.18	)	$	0.55

*	Per share amounts are calculated independently for each period presented; therefore, the sum of the quarterly per share amounts may not equal the per share amounts for the year.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Basis of Presentation

Principles of Consolidation

Related Party Transactions

Cash Equivalents

Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less.

Inventory Valuation

Properties, Plants, and Equipment


Segment	Structures		Machinery and equipment
Alumina:
Alumina refining		30		25
Bauxite mining		33		19
Primary Metals:
Aluminum smelting		35		21
Power generation		34		24
Global Rolled Products		32		21
Engineered Products and Solutions		29		18

Mineral Rights

Deferred Mining Costs

Goodwill and Other Intangible Assets


Segment	Software		Other intangible assets
Alumina		10		-
Primary Metals		9		36
Global Rolled Products		10		13
Engineered Products and Solutions		9		19

Equity Investments

Revenue Recognition

Environmental Matters

Litigation Matters

Asset Retirement Obligations

Income Taxes

Stock-Based Compensation

Derivatives and Hedging

If no hedging relationship is designated, the derivative is marked to market through earnings.

Cash flows from derivatives are recognized in the Statement of Consolidated Cash Flows in a manner consistent with the underlying transactions.

Foreign Currency

Acquisitions

Discontinued Operations and Assets Held For Sale

Fair Value Accounting

Business Combinations and Consolidation Accounting

Goodwill and Other Intangible Assets

Other

Recently Issued Accounting Guidance

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Weighted-Average Useful Lives of Structures and Machinery and Equipment

The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years):


Segment	Structures		Machinery and equipment
Alumina:
Alumina refining		30		25
Bauxite mining		33		19
Primary Metals:
Aluminum smelting		35		21
Power generation		34		24
Global Rolled Products		32		21
Engineered Products and Solutions		29		18

Weighted-Average Useful Lives of Software and Other Intangible Assets

The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years):


Segment	Software		Other intangible assets
Alumina		10		-
Primary Metals		9		36
Global Rolled Products		10		13
Engineered Products and Solutions		9		19

Discontinued Operations and Assets Held for Sale (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Selected Financial Information of Discontinued Operations

The following table details selected financial information of discontinued operations:


	2012		2011			2010
Sales	$	-	$	-		$	-
Loss from operations before income taxes	$	-	$	(4	)	$	(11	)
Benefit for income taxes		-		1			3
Loss from discontinued operations	$	-	$	(3	)	$	(8	)

Schedule of Major Classes of Assets and Liabilities of Operations Held for Sale

The major classes of assets and liabilities of operations held for sale were as follows:


December 31,	2012		2011
Assets:
Properties, plants, and equipment	$	2	$	136
Goodwill		-		94
Other assets		-		13
Assets held for sale*	$	2	$	243
Liabilities:
Accounts payable, trade	$	-	$	1
Accrued expenses		1		5
Liabilities of operations held for sale*	$	1	$	6

*	Assets held for sale were included in Other noncurrent assets and Liabilities of operations held for sale were included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet.

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Asset Retirement Obligations (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Carrying Value of Recorded AROs by Major Category

The following table details the carrying value of recorded AROs by major category (of which $75 and $76 was classified as a current liability as of December 31, 2012 and 2011, respectively):


December 31,	2012		2011
Spent pot lining disposal	$	182	$	187
Closure of bauxite residue areas		190		173
Mine reclamation		189		164
Demolition*		28		34
Landfill closure		17		17
Other		4		4
	$	610	$	579

*	In 2011, AROs were recorded as a result of management’s decision to permanently shut down and demolish certain structures, each of which was previously temporarily idled for different reasons (see Note D).

Schedule of Changes in Carrying Value of Recorded AROs

The following table details the changes in the total carrying value of recorded AROs:


December 31,	2012			2011
Balance at beginning of year	$	579		$	534
Accretion expense		25			22
Payments		(81	)		(86	)
Liabilities incurred		80			115
Foreign currency translation and other		7			(6	)
Balance at end of year	$	610		$	579

Restructuring and Other Charges (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Restructuring and Other Charges

Restructuring and other charges for each year in the three-year period ended December 31, 2012 were comprised of the following:


	2012			2011			2010
Asset impairments	$	40		$	150		$	139
Layoff costs		47			93			43
Other exit costs		21			61			58
Reversals of previously recorded layoff and other exit costs		(21	)		(23	)		(33	)
Restructuring and other charges	$	87		$	281		$	207

Schedule of Restructuring and Other Charges by Reportable Segments, Pretax

The pretax impact of allocating such charges to segment results would have been as follows:


	2012		2011			2010
Alumina	$	3	$	39		$	12
Primary Metals		20		212			145
Global Rolled Products		43		19			(11	)
Engineered Products and Solutions		13		(3	)		18
Segment total		79		267			164
Corporate		8		14			43
Total restructuring and other charges	$	87	$	281		$	207

Activity and Reserve Balances for Restructuring Charges

Activity and reserve balances for restructuring charges were as follows:


	Layoff costs			Other exit costs			Total
Reserve balances at December 31, 2009	$	160		$	66		$	226
2010:
Cash payments		(93	)		(15	)		(108	)
Restructuring charges		43			53			96
Other*		(57	)		(41	)		(98	)
Reserve balances at December 31, 2010		53			63			116
2011:
Cash payments		(45	)		(9	)		(54	)
Restructuring charges		93			37			130
Other*		(24	)		(34	)		(58	)
Reserve balances at December 31, 2011		77			57			134
2012:
Cash payments		(44	)		(13	)		(57	)
Restructuring charges		47			13			60
Other*		(21	)		(5	)		(26	)
Reserve balances at December 31, 2012	$	59		$	52		$	111

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2012

Changes in Carrying Amount of Goodwill

The following table details the changes in the carrying amount of goodwill:


	Alumina			Primary Metals			Global Rolled Products		Engineered Products and Solutions			Corporate*			Total
Balance at December 31, 2010:
Goodwill	$	12		$	993		$	207	$	2,551		$	1,293		$	5,056
Accumulated impairment losses		-			-			-		(28	)		-			(28	)
		12			993			207		2,523			1,293			5,028
Acquisition of businesses		-			-			-		150			-			150
Translation		(1	)		(2	)		1		(7	)		(12	)		(21	)
Balance at December 31, 2011:
Goodwill		11			991			208		2,694			1,281			5,185
Accumulated impairment losses		-			-			-		(28	)		-			(28	)
		11			991			208		2,666			1,281			5,157
Acquisition of businesses		-			-			-		(1	)		-			(1	)
Translation		(1	)		6			6		12			(9	)		14
Balance at December 31, 2012:
Goodwill		10			997			214		2,705			1,272			5,198
Accumulated impairment losses		-			-			-		(28	)		-			(28	)
	$	10		$	997		$	214	$	2,677		$	1,272		$	5,170

Other Intangible Assets

Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows:


December 31, 2012	Gross carrying amount		Accumulated amortization
Computer software	$	907	$	(664	)
Patents and licenses		133		(88	)
Other intangibles		101		(28	)
Total amortizable intangible assets		1,141		(780	)
Indefinite-lived trade names and trademarks		46		-
Total other intangible assets	$	1,187	$	(780	)


December 31, 2011	Gross carrying amount		Accumulated amortization
Computer software	$	902	$	(595	)
Patents and licenses		133		(83	)
Other intangibles*		101		(23	)
Total amortizable intangible assets		1,136		(701	)
Indefinite-lived trade names and trademarks*		46		-
Total other intangible assets	$	1,182	$	(701	)

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details

Inventories (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Inventory Components


December 31,	2012		2011
Finished goods	$	542	$	537
Work-in-process		866		911
Bauxite and alumina		618		656
Purchased raw materials		536		532
Operating supplies		263		263
	$	2,825	$	2,899

Properties, Plants, and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Properties, Plants, and Equipment, Net


December 31,	2012		2011
Land and land rights, including mines	$	676	$	665
Structures:
Alumina:
Alumina refining		3,319		3,280
Bauxite mining		1,563		1,597
Primary Metals:
Aluminum smelting		4,042		3,950
Power generation		604		667
Global Rolled Products		1,232		1,204
Engineered Products and Solutions		678		648
Other		760		714
		12,198		12,060
Machinery and equipment:
Alumina:
Alumina refining		5,279		5,223
Bauxite mining		650		661
Primary Metals:
Aluminum smelting		8,114		8,266
Power generation		994		1,012
Global Rolled Products		5,174		5,059
Engineered Products and Solutions		2,415		2,252
Other		883		764
		23,509		23,237
		36,383		35,962
Less: accumulated depreciation, depletion, and amortization		19,190		18,326
		17,193		17,636
Construction work-in-progress		1,754		1,646
	$	18,947	$	19,282

Investments (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Investments


December 31,	2012		2011
Equity investments	$	1,782	$	1,524
Other investments		78		102
	$	1,860	$	1,626

Other Noncurrent Assets (Tables)

12 Months Ended

Dec. 31, 2012

Schedule Of Other Noncurrent Assets


December 31,	2012		2011
Intangibles, net (E)	$	407	$	481
Cash surrender value of life insurance		464		455
Value-added tax receivable		408		510
Fair value of derivative contracts (X)		364		44
Prepaid gas transmission contract (N)		363		346
Deferred mining costs, net		223		221
Prepaid pension benefit (W)		86		109
Unamortized debt expense		86		98
Assets held for sale (B)		2		243
Other		309		289
	$	2,712	$	2,796

Debt (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Long-Term Debt

Long-Term Debt.


December 31,	2012		2011
6% Notes, due 2012	$	-	$	322
6% Notes, due 2013		422		422
5.25% Convertible Notes, due 2014		575		575
5.55% Notes, due 2017		750		750
6.5% Bonds, due 2018		250		250
6.75% Notes, due 2018		750		750
5.72% Notes, due 2019		750		750
6.15% Notes, due 2020		1,000		1,000
5.40% Notes, due 2021		1,250		1,250
5.87% Notes, due 2022		627		627
5.9% Notes, due 2027		625		625
6.75% Bonds, due 2028		300		300
5.95% Notes due 2037		625		625
BNDES Loans, due 2013-2029 (see below for weighted average rates)		397		627
Iowa Finance Authority Loan, due 2042 (4.75%)		250		-
Other*		205		212
		8,776		9,085
Less: amount due within one year		465		445
	$	8,311	$	8,640

Other Noncurrent Liabilities and Deferred Credits (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Other Noncurrent Liabilities and Deferred Credits


December 31,	2012		2011
Fair value of derivative contracts (X)	$	606	$	624
Asset retirement obligations (C)		535		503
Environmental remediation (N)		458		289
Deferred income taxes (T)		460		395
Deferred credit related to derivative contract (X)		330		-
Accrued compensation and retirement costs		322		304
Deferred alumina sales revenue		108		116
Other		259		197
	$	3,078	$	2,428

Noncontrolling Interests (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Noncontrolling Shareholders' Interests

The following table summarizes the noncontrolling shareholders’ interests in the equity of Alcoa’s majority-owned consolidated subsidiaries:


December 31,	2012		2011
Alcoa World Alumina and Chemicals	$	3,295	$	3,324
Other		29		27
	$	3,324	$	3,351

Other (Income) Expenses, Net (Tables)

12 Months Ended

Dec. 31, 2012

Other (Income) Expenses, Net

Other (Income) Expenses, Net


	2012			2011			2010
Equity loss (income)	$	28		$	(15	)	$	(14	)
Interest income		(31	)		(20	)		(19	)
Foreign currency (gains) losses, net		(5	)		16			13
Net gain from asset sales		(321	)		(41	)		(9	)
Net (gain) loss on mark-to-market derivative contracts (X)		(13	)		(52	)		37
Other, net		1			25			(3	)
	$	(341	)	$	(87	)	$	5

Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Cash Paid for Interest and Income Taxes

Cash paid for interest and income taxes was as follows:


	2012		2011		2010
Interest, net of amount capitalized	$	454	$	491	$	452
Income taxes, net of amount refunded		223		382		(67	)

Schedule of Cash Paid for Acquisitions

The details related to cash paid for acquisitions were as follows:


	2012		2011			2010
Assets acquired	$	-	$	253		$	87
Liabilities assumed		-		(12	)		(15	)
Noncontrolling interests acquired		-		-			4
Redemption of convertible securities of subsidiary		-		-			40
Reduction in Alcoa shareholders’ equity		-		-			22
Cash paid		-		241			138
Less: cash acquired		-		1			-
Net cash paid	$	-	$	240		$	138

Segment and Geographic Area Information (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Operating Results and Assets of Alcoa's Reportable Segments

The operating results and assets of Alcoa’s reportable segments were as follows:


	Alumina			Primary Metals			Global Rolled Products			Engineered Products and Solutions		Total
2012
Sales:
Third-party sales	$	3,092		$	7,432		$	7,378		$	5,525	$	23,427
Intersegment sales		2,310			2,877			163			-		5,350
Total sales	$	5,402		$	10,309		$	7,541		$	5,525	$	28,777
Profit and loss:
Equity income (loss)	$	5		$	(27	)	$	(6	)	$	-	$	(28	)
Depreciation, depletion, and amortization		455			532			229			158		1,374
Income taxes		(27	)		106			167			297		543
ATOI		90			309			358			612		1,369
2011
Sales:
Third-party sales	$	3,462		$	8,240		$	7,642		$	5,345	$	24,689
Intersegment sales		2,727			3,192			218			-		6,137
Total sales	$	6,189		$	11,432		$	7,860		$	5,345	$	30,826
Profit and loss:
Equity income (loss)	$	25		$	(7	)	$	(3	)	$	1	$	16
Depreciation, depletion, and amortization		444			556			237			158		1,395
Income taxes		179			92			104			260		635
ATOI		607			481			266			539		1,893
2010
Sales:
Third-party sales	$	2,815		$	7,070		$	6,277		$	4,584	$	20,746
Intersegment sales		2,212			2,597			180			-		4,989
Total sales	$	5,027		$	9,667		$	6,457		$	4,584	$	25,735
Profit and loss:
Equity income	$	10		$	1		$	-		$	2	$	13
Depreciation, depletion, and amortization		406			571			238			154		1,369
Income taxes		60			96			92			195		443
ATOI		301			488			220			415		1,424
2012
Assets:
Capital expenditures	$	374		$	318		$	258		$	200	$	1,150
Equity investments		658			917			188			-		1,763
Goodwill		10			997			214			2,677		3,898
Total assets		9,709			11,709			4,603			5,891		31,912
2011
Assets:
Capital expenditures	$	371		$	463		$	157		$	173	$	1,164
Equity investments		450			925			123			-		1,498
Goodwill		11			991			208			2,666		3,876
Total assets		9,782			11,867			4,559			5,831		32,039

Schedule of Reconciliation of Certain Segment Information to Consolidated Totals

The following tables reconcile certain segment information to consolidated totals:


	2012			2011			2010
Sales:
Total segment sales	$	28,777		$	30,826		$	25,735
Elimination of intersegment sales		(5,350	)		(6,137	)		(4,989	)
Corporate*		273			262			267
Consolidated sales	$	23,700		$	24,951		$	21,013

*	For all periods presented, the Corporate amount includes third-party sales of three soft alloy extrusion facilities located in Brazil.

Schedule of Segment Reporting Information to Consolidated Net Income Attributable to Alcoa


	2012			2011			2010
Net income attributable to Alcoa:
Total segment ATOI	$	1,369		$	1,893		$	1,424
Unallocated amounts (net of tax):
Impact of LIFO		20			(38	)		(16	)
Interest expense		(319	)		(340	)		(321	)
Noncontrolling interests		29			(194	)		(138	)
Corporate expense		(282	)		(290	)		(291	)
Restructuring and other charges		(75	)		(196	)		(134	)
Discontinued operations		-			(3	)		(8	)
Other		(551	)		(221	)		(262	)
Consolidated net income attributable to Alcoa	$	191		$	611		$	254

Schedule of Segment Reporting Information to Consolidated Assets


December 31,	2012			2011
Assets:
Total segment assets	$	31,912		$	32,039
Elimination of intersegment receivables		(444	)		(483	)
Unallocated amounts:
Cash and cash equivalents		1,861			1,939
Deferred income taxes		4,061			3,738
Corporate goodwill		1,272			1,281
Corporate fixed assets, net		961			935
LIFO reserve		(770	)		(801	)
Other		1,326			1,472
Consolidated assets	$	40,179		$	40,120

Sales by Major Product Grouping

Sales by major product grouping were as follows:


	2012		2011		2010
Sales:
Alumina	$	2,962	$	3,350	$	2,740
Primary aluminum		7,121		7,907		6,842
Flat-rolled aluminum		7,378		7,642		6,277
Investment castings		1,747		1,700		1,521
Fastening systems		1,414		1,313		1,070
Architectural aluminum systems		970		973		884
Aluminum wheels		692		656		475
Other extruded aluminum and forged products		955		1,010		930
Other		461		400		274
	$	23,700	$	24,951	$	21,013

Schedule of Geographic Information for Sales

Geographic information for sales was as follows (based upon the country where the point of sale occurred):


	2012		2011		2010
Sales:
U.S.*	$	12,361	$	12,295	$	10,560
Australia		3,222		3,587		2,842
Brazil		1,244		1,371		1,182
Spain		1,203		1,487		1,234
Netherlands**		949		1,025		940
Norway		820		927		809
France		807		825		662
Russia		713		761		584
Hungary		492		665		505
United Kingdom		438		412		331
Italy		379		537		418
China		326		283		188
Germany		216		229		231
Other		530		547		527
	$	23,700	$	24,951	$	21,013

*	Sales that occurred in the U.S. include a portion of alumina from Alcoa’s refineries in Suriname, Brazil, Australia, and Jamaica and aluminum from the Company’s smelters in Canada.

**	Sales that occurred in the Netherlands include aluminum from Alcoa’s smelter in Iceland.

Schedule of Geographic Information for Long-Lived Assets

Geographic information for long-lived assets was as follows (based upon the physical location of the assets):


December 31,	2012		2011
Long-lived assets:
U.S.	$	4,621	$	4,439
Brazil		4,318		4,844
Australia		3,548		3,390
Iceland		1,571		1,615
Canada		1,399		1,447
Norway		898		894
Russia		494		531
Spain		445		451
Jamaica		414		417
China		395		424
Other		844		830
	$	18,947	$	19,282

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Preferred and Common Stock (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Share Activity

Share Activity (number of shares)


	Common stock
	Treasury			Outstanding
Balance at end of 2009		122,695,718			974,378,820
Private placement		-			44,313,146
Conversion of convertible notes		-			310
Issued for stock-based compensation plans		(3,333,689	)		3,333,689
Balance at end of 2010		119,362,029			1,022,025,965
Private placement		-			36,518,563
Issued for stock-based compensation plans		(5,867,538	)		5,867,538
Balance at end of 2011		113,494,491			1,064,412,066
Issued for stock-based compensation plans		(2,799,887	)		2,799,887
Balance at end of 2012		110,694,604			1,067,211,953

Schedule of Share-Based Compensation

Stock option features based on date of original grant were as follows:


Date of original grant	Vesting	Term	Reload feature
2002 and prior	1 year	10 years		One reload over option term
2003	3 years (1/3 each year)	10 years		One reload in 2004 for 1/3 vesting in 2004
2004 - 2009	3 years (1/3 each year)	6 years		None
2010 and forward	3 years (1/3 each year)	10 years		None

Schedule of Total Compensation Expense Recognized for All Stock Options and Awards

The following table summarizes the total compensation expense recognized for all stock options and stock awards (there was no stock-based compensation expense capitalized in 2012, 2011, or 2010):


	2012		2011		2010
Compensation expense recognized:
Stock option grants	$	27	$	34	$	44
Stock award grants		40		49		40
Total compensation expense before income taxes		67		83		84
Benefit for income taxes		21		27		27
Total compensation expense, net of income taxes	$	46	$	56	$	57

Schedule of Fair Value of New Options

The fair value of new options was estimated on the date of grant using a lattice-pricing model with the following assumptions:


	2012			2011			2010
Weighted average fair value per option	$	3.11		$	4.96		$	4.67
Average risk-free interest rate		0.06-1.89	%		0.19-3.44	%		0.14-3.62	%
Dividend yield		0.9	%		0.9	%		1.1	%
Volatility		39-45	%		36-43	%		47-51	%
Annual forfeiture rate		5	%		5	%		4	%
Exercise behavior		45	%		45	%		35	%
Life (years)		5.8			5.8			5.6

Schedule of Activity for Stock Options

The activity for stock options was as follows (options in millions):


	2012			2011			2010
Outstanding, beginning of year:
Number of options		46.8			56.1			65.5
Weighted average exercise price	$	17.41		$	19.29		$	24.44
Granted:
Number of options		10.5			4.5			9.0
Weighted average exercise price	$	10.17		$	16.24		$	13.52
Exercised:
Number of options		(1.5	)		(4.3	)		(1.6	)
Weighted average exercise price	$	8.28		$	8.59		$	8.34
Expired or forfeited:
Number of options		(10.8	)		(9.5	)		(16.8	)
Weighted average exercise price	$	31.83		$	31.90		$	37.21
Outstanding, end of year:
Number of options		45.0			46.8			56.1
Weighted average exercise price	$	12.58		$	17.41		$	19.29
Exercisable, end of year:
Number of options		29.8			28.8			30.2
Weighted average exercise price	$	13.02		$	20.90		$	26.91

Schedule of Options Fully Vested and/or Expected to Vest

Options Fully Vested and/or Expected to Vest*


Range of exercise price	Number		Weighted average remaining contractual life		Weighted average exercise price		Intrinsic Value
$6.12 - $8.33		17.9		2.06	$	8.33	$	7
$8.34 - $11.33		10.3		8.93		10.17		-
$11.34 - $17.40		11.2		7.21		14.47		-
$17.41 - $46.77		5.6		0.26		26.96		-
Total		45.0		4.69		12.58	$	7

*	Expected forfeitures are immaterial to the Company and are not reflected in the table above.

Schedule of Options Fully Vested and Exercisable

Options Fully Vested and Exercisable


Range of exercise price	Number		Weighted average remaining contractual life		Weighted average exercise price		Intrinsic Value
$6.12 - $8.33		17.9		2.06	$	8.33	$	7
$8.34 - $11.33		0.1		6.65		10.72		-
$11.34 - $17.40		6.2		7.07		14.10		-
$17.41 - $46.77		5.6		0.26		26.96		-
Total		29.8		2.77		13.02	$	7

Summary of Outstanding Stock and Performance Share Awards

The following table summarizes the outstanding stock and performance share awards (awards in millions):


	Stock Awards			Performance Share Awards			Total			Weighted average FMV per award
Outstanding, January 1, 2012		6.4			2.9			9.3		$	13.63
Granted		3.0			1.9			4.9			10.08
Converted		(1.0	)		(0.8	)		(1.8	)		8.42
Forfeited		(0.5	)		(0.2	)		(0.7	)		13.49
Performance share adjustment		-			0.2			0.2			12.74
Outstanding, December 31, 2012		7.9			4.0			11.9			12.96

Schedule of Unrecognized Compensation Expense

As of December 31, 2012, the following table summarizes the unrecognized compensation expense expected to be recognized in future periods:


	Stock-based compensation expense (pretax)
2013	$	38
2014		18
2015		1
Totals	$	57

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2012

Reconciliation of Information Used to Compute Basic and Diluted EPS

The information used to compute basic and diluted EPS attributable to Alcoa common shareholders was as follows (shares in millions):


	2012		2011		2010
Income from continuing operations attributable to Alcoa common shareholders	$	191	$	614	$	262
Less: preferred stock dividends declared		2		2		2
Income from continuing operations available to common equity		189		612		260
Less: dividends and undistributed earnings allocated to participating securities		-		1		1
Income from continuing operations available to Alcoa common shareholders—basic		189		611		259
Add: interest expense related to convertible notes		-		30		-
Income from continuing operations available to Alcoa common shareholders—diluted	$	189	$	641	$	259
Average shares outstanding—basic		1,067		1,061		1,018
Effect of dilutive securities:
Stock options		3		7		6
Stock and performance awards		6		4		1
Convertible notes		-		89		-
Average shares outstanding—diluted		1,076		1,161		1,025

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Income from Continuing Operations Before Income Taxes

The components of income from continuing operations before income taxes were as follows:


	2012			2011			2010
U.S.	$	394		$	(98	)	$	(403	)
Foreign		(70	)		1,161			951
	$	324		$	1,063		$	548

Schedule of Provision for Income Taxes on Income from Continuing Operations

The provision for income taxes on income from continuing operations consisted of the following:


	2012			2011			2010
Current:
Federal*	$	85		$	10		$	33
Foreign		167			427			409
State and local		9			(1	)		(7	)
		261			436			435
Deferred:
Federal*		129			28			37
Foreign		(227	)		(211	)		(320	)
State and local		(1	)		2			(4	)
		(99	)		(181	)		(287	)
Total	$	162		$	255		$	148

*	Includes U.S. taxes related to foreign income

Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate for Continuing Operations

A reconciliation of the U.S. federal statutory rate to Alcoa’s effective tax rate for continuing operations was as follows:


	2012			2011			2010
U.S. federal statutory rate		35.0	%		35.0	%		35.0	%
Taxes on foreign operations		(0.1	)		(11.0	)		(5.4	)
Permanent differences on restructuring charges and asset disposals		10.8			-			0.7
Audit and other adjustments to prior years’ accruals		3.5			(1.1	)		1.2
Noncontrolling interests		3.8			0.8			2.6
Statutory tax rate and law changes		(0.4	)		0.8			(5.1	)
Tax law change related to Medicare Part D		-			-			14.4
Changes in valuation allowances		15.2			2.3			(8.7	)
Amortization of goodwill related to intercompany stock sales/reorganizations		(7.7	)		(2.8	)		(5.2	)
Change in legal structure of investment		(4.1	)		-			-
Interest income related to income tax positions		(1.3	)		(0.2	)		-
Company-owned life insurance/split-dollar net premiums		(3.9	)		(0.2	)		(1.8	)
Other		(0.8	)		0.4			(0.8	)
Effective tax rate		50.0	%		24.0	%		26.9	%

Schedule of Components of Net Deferred Tax Assets and Liabilities

The components of net deferred tax assets and liabilities were as follows:


	2012					2011
December 31,	Deferred tax assets			Deferred tax liabilities		Deferred tax assets			Deferred tax liabilities
Depreciation	$	104		$	1,015	$	74		$	933
Employee benefits		2,742			46		2,668			51
Loss provisions		368			17		325			9
Deferred income/expense		53			203		45			181
Tax loss carryforwards		2,186			-		2,035			-
Tax credit carryforwards		508			-		477			-
Derivatives and hedging activities		117			16		109			43
Other		324			297		315			288
		6,402			1,594		6,048			1,505
Valuation allowance		(1,400	)		-		(1,398	)		-
	$	5,002		$	1,594	$	4,650		$	1,505

Schedule of Expiration Periods of Deferred Tax Assets

The following table details the expiration periods of the deferred tax assets presented above:


December 31, 2012	Expires within 10 years			Expires within 11-20 years			No expiration*			Other*			Total
Tax loss carryforwards	$	332		$	886		$	968		$	-		$	2,186
Tax credit carryforwards		370			73			65			-			508
Other		-			-			762			2,946			3,708
Valuation allowance		(212	)		(659	)		(244	)		(285	)		(1,400	)
	$	490		$	300		$	1,551		$	2,661		$	5,002

Schedule of Changes in Valuation Allowance

The following table details the changes in the valuation allowance:


December 31,	2012			2011
Balance at beginning of year	$	1,398		$	1,268
Increase to allowance		45			157
Release of allowance		(48	)		(25	)
Foreign currency translation		5			(2	)
Balance at end of year	$	1,400		$	1,398

Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties)

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows:


December 31,	2012			2011			2010
Balance at beginning of year	$	51		$	46		$	48
Additions for tax positions of the current year		-			-			-
Additions for tax positions of prior years		39			13			30
Reductions for tax positions of prior years		(7	)		(3	)		(5	)
Settlements with tax authorities		(18	)		(4	)		(22	)
Expiration of the statute of limitations		-			-			(5	)
Foreign currency translation		1			(1	)		-
Balance at end of year	$	66		$	51		$	46

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References + Details

Receivables (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Allowance for Doubtful Accounts

The following table details the changes in the allowance for doubtful accounts related to customer receivables and other receivables:


	Customer receivables						Other receivables
December 31,	2012			2011			2012			2011
Balance at beginning of year	$	46		$	46		$	79		$	87
Provision for doubtful accounts		2			19			9			7
Write off of uncollectible accounts		(8	)		(14	)		(3	)		(3	)
Recoveries of prior write-offs		(1	)		(3	)		(6	)		(5	)
Other		-			(2	)		(5	)		(7	)
Balance at end of year	$	39		$	46		$	74		$	79

Interest Cost Components (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Interest Cost Components

V. Interest Cost Components


	2012		2011		2010
Amount charged to expense	$	490	$	524	$	494
Amount capitalized		93		101		96
	$	583	$	625	$	590

Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of obligations and Funded Status

Obligations and Funded Status


	Pension benefits						Other postretirement benefits
December 31,	2012			2011			2012			2011
Change in benefit obligation
Benefit obligation at beginning of year	$	13,526		$	12,343		$	2,844		$	2,902
Service cost		203			183			14			17
Interest cost		647			687			132			159
Amendments		6			40			-			(1	)
Actuarial losses		1,120			1,163			107			17
Settlements		-			(32	)		-			-
Curtailments		-			(7	)		-			-
Benefits paid, net of participants’ contributions		(833	)		(813	)		(256	)		(275	)
Medicare Part D subsidy receipts		-			-			21			25
Foreign currency translation impact		82			(38	)		1			-
Benefit obligation at end of year*	$	14,751		$	13,526		$	2,863		$	2,844
Change in plan assets
Fair value of plan assets at beginning of year	$	10,311		$	9,451		$	8		$	58
Actual return on plan assets		925			783			-			2
Employer contributions		571			945			-			-
Participants’ contributions		32			35			-			-
Benefits paid		(822	)		(805	)		(8	)		(52	)
Administrative expenses		(42	)		(38	)		-			-
Settlements		-			(34	)		-			-
Foreign currency translation impact		68			(26	)		-			-
Fair value of plan assets at end of year*	$	11,043		$	10,311		$	-		$	8
Funded status*	$	(3,708	)	$	(3,215	)	$	(2,863	)	$	(2,836	)
Less: Amounts attributed to joint venture partners		(40	)		(34	)		(4	)		(5	)
Net funded status	$	(3,668	)	$	(3,181	)	$	(2,859	)	$	(2,831	)
Amounts recognized in the Consolidated Balance Sheet consist of:
Noncurrent assets	$	86		$	109		$	-		$	-
Current liabilities		(32	)		(29	)		(256	)		(248	)
Noncurrent liabilities		(3,722	)		(3,261	)		(2,603	)		(2,583	)
Net amount recognized	$	(3,668	)	$	(3,181	)	$	(2,859	)	$	(2,831	)
Amounts recognized in Accumulated Other Comprehensive Loss consist of:
Net actuarial loss	$	5,880		$	5,191		$	593		$	511
Prior service cost (benefit)		119			129			(76	)		(92	)
Total, before tax effect		5,999			5,320			517			419
Less: Amounts attributed to joint venture partners		54			46			(1	)		(1	)
Net amount recognized, before tax effect	$	5,945		$	5,274		$	518		$	420
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss consist of:
Net actuarial loss	$	1,073		$	1,216		$	107		$	17
Amortization of accumulated net actuarial loss		(384	)		(246	)		(25	)		(26	)
Prior service cost (benefit)		9			42			-			(1	)
Amortization of prior service (cost) benefit		(19	)		(19	)		16			17
Total, before tax effect		679			993			98			7
Less: Amounts attributed to joint venture partners		8			10			-			(1	)
Net amount recognized, before tax effect	$	671		$	983		$	98		$	8

Schedule of Pension Plan Benefit Obligations

Pension Plan Benefit Obligations


	Pension benefits
	2012		2011
The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows:
Projected benefit obligation	$	14,751	$	13,526
Accumulated benefit obligation		14,186		13,025

The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets was as follows:
Projected benefit obligation		13,973		12,828
Fair value of plan assets		10,142		9,470

The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets was as follows:
Accumulated benefit obligation		13,421		12,184
Fair value of plan assets		10,123		9,281

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost


	Pension benefits⁽¹⁾									Other postretirement benefits⁽²⁾
	2012			2011			2010			2012			2011			2010
Service cost	$	186		$	165		$	148		$	14		$	17		$	20
Interest cost		639			678			682			131			158			174
Expected return on plan assets		(808	)		(806	)		(787	)		-			(2	)		(7	)
Recognized net actuarial loss		384			247			181			25			26			33
Amortization of prior service cost (benefit)		19			19			17			(16	)		(17	)		(15	)
Settlements⁽³⁾		-			2			2			-			-			(3	)
Curtailments⁽⁴⁾		-			(9	)		(10	)		-			-			-
Net periodic benefit cost⁽⁵⁾	$	420		$	296		$	233		$	154		$	182		$	202

⁽¹⁾	In 2012, 2011, and 2010, net periodic benefit cost for U.S pension plans was $288, $190, and $155, respectively.

⁽²⁾	In 2012, 2011, and 2010, net periodic benefit cost for other postretirement benefits reflects a reduction of $64, $43, and $39, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D.

⁽³⁾	In all periods presented, settlements were due to the payment of significant lump sum benefits and/or purchases of annuity contracts.

⁽⁴⁾	In each period presented, curtailments were due to elimination of benefits or workforce reductions (see Note D).

⁽⁵⁾	Amounts attributed to joint venture partners are not included.

Schedule of Amounts Expected to be Recognized in Net Periodic Benefit Cost

Amounts Expected to be Recognized in Net Periodic Benefit Cost


	Pension benefits		Other postretirement benefits
	2013		2013
Net actuarial loss recognition	$	494	$	36
Prior service cost (benefit) recognition		19		(18	)

Schedule of Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially):


	2012			2011			2010
Health care cost trend rate assumed for next year		6.0	%		6.5	%		6.5	%
Rate to which the cost trend rate gradually declines		4.5	%		5.0	%		5.0	%
Year that the rate reaches the rate at which it is assumed to remain		2017			2016			2015

Schedule of One-Percentage Point Change in Assumed Rates of Health Care Cost Trend Rates

A one-percentage point change in these assumed rates would have the following effects:


	1% increase		1% decrease
Effect on other postretirement benefit obligations	$	124	$	(114	)
Effect on total of service and interest cost components		5		(5	)

Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations

Alcoa’s pension and other postretirement plans’ investment policy and weighted average asset allocations at December 31, 2012 and 2011, by asset class, were as follows:


				Plan assets at December 31,
Asset class	Policy range			2012			2011
Equities		20–55	%		33	%		34	%
Fixed income		25–55	%		50			50
Other investments		15–35	%		17			16
Total					100	%		100	%

Schedule of Fair Value of Pension and Postretirement Plans' Assets

The following table presents the fair value of pension and other postretirement plans’ assets classified under the appropriate level of the fair value hierarchy:


December 31, 2012	Level 1		Level 2		Level 3		Total
Equities:
Equity securities	$	1,016	$	1,196	$	117	$	2,329
Short and long equity hedge funds		-		-		756		756
Private equity		-		-		550		550
	$	1,016	$	1,196	$	1,423	$	3,635
Fixed income:
Intermediate and long duration government/credit	$	1,169	$	3,689	$	215	$	5,073
Other		-		507		-		507
	$	1,169	$	4,196	$	215	$	5,580
Other investments:
Real estate	$	113	$	83	$	377	$	573
Macro hedge funds		-		-		796		796
Other		212		-		247		459
	$	325	$	83	$	1,420	$	1,828
Total	$	2,510	$	5,475	$	3,058	$	11,043

December 31, 2011	Level 1		Level 2		Level 3		Total
Equities
Equity securities*	$	904	$	1,203	$	110	$	2,217
Short and long equity hedge funds		-		-		731		731
Private equity		-		-		542		542
	$	904	$	1,203	$	1,383	$	3,490
Fixed income:
Intermediate and long duration government/credit	$	1,223	$	3,540	$	211	$	4,974
Other		-		340		-		340
	$	1,223	$	3,880	$	211	$	5,314
Other investments:
Real estate	$	97	$	74	$	375	$	546
Macro hedge funds		-		-		668		668
Other		198		-		123		321
	$	295	$	74	$	1,166	$	1,535
Total**	$	2,422	$	5,157	$	2,760	$	10,339

*	At December 31, 2011, Level 1 equity securities include $36 of Alcoa common stock related to the January 2011 plan contribution (see Funding and Cash Flows section below).

**	As of December 31, 2011, the total fair value of pension and other postretirement plans’ assets excludes a net payable of $20, which represents securities purchased not yet settled less interest and dividends earned on various investments.

Schedule of Reconciliation of Activity for Investments

The following table presents a reconciliation of activity for such investments:


	2012			2011
Balance at beginning of year	$	2,760		$	1,499
Realized gains		52			67
Unrealized gains		142			100
Purchases		634			1,221
Sales		(538	)		(124	)
Issuances		-			-
Settlements		-			-
Foreign currency translation impact		8			(3	)
Transfers in and (or) out of Level 3*		-			-
Balance at end of year	$	3,058		$	2,760

*	In 2012 and 2011, there were no transfers of financial instruments into or out of Level 3

Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts

Benefit payments expected to be paid to pension and other postretirement benefit plans’ participants and expected Medicare Part D subsidy receipts are as follows:


Year ended December 31,	Pension benefits		Gross Other post- retirement benefits		Medicare Part D subsidy receipts		Net Other post- retirement benefits
2013	$	880	$	285	$	30	$	255
2014		870		280		30		250
2015		880		280		30		250
2016		890		275		30		245
2017		910		270		35		235
2018 through 2022		4,620		1,200		170		1,030
	$	9,050	$	2,590	$	325	$	2,265

Benefit Obligation [Member]

Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost

Weighted average assumptions used to determine benefit obligations for U.S. pension and other postretirement benefit plans were as follows (assumptions for non-U.S plans did not differ materially):


December 31,	2012			2011
Discount rate		4.15	%		4.90	%
Rate of compensation increase		3.5			3.5

Net Periodic Benefit Cost [Member]

Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost


	2012			2011			2010
Discount rate*		4.90	%		5.75	%		6.15	%
Expected long-term rate of return on plan assets		8.50			8.50			8.75
Rate of compensation increase		3.50			3.50			3.50

Derivatives and Other Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Fair Values and Corresponding Level of Fair Value Hierarchy of Outstanding Derivative Contracts Recorded as Assets


Asset Derivatives	Level		December 31, 2012		December 31, 2011
Derivatives designated as hedging instruments:
Prepaid expenses and other current assets:
Aluminum contracts		1	$	23	$	51
Aluminum contracts		3		7		5
Interest rate contracts		2		8		8
Other noncurrent assets:
Aluminum contracts		1		3		6
Energy contracts		3		3		2
Interest rate contracts		2		37		37
Total derivatives designated as hedging instruments			$	81	$	109
Derivatives not designated as hedging instruments*:
Prepaid expenses and other current assets:
Aluminum contracts		2	$	-	$	1
Aluminum contracts		3		211		-
Other noncurrent assets:
Aluminum contracts		3		329		5
Foreign exchange contracts		1		1		1
Total derivatives not designated as hedging instruments			$	541	$	7
Less margin held**:
Prepaid expenses and other current assets:
Aluminum contracts		1	$	9	$	7
Interest rate contracts		2		8		8
Other noncurrent assets:
Interest rate contracts		2		9		7
Sub-total			$	26	$	22
Total Asset Derivatives			$	596	$	94

*	See the “Other” section within Note X for additional information on Alcoa’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies.

Schedule of Fair Values and Corresponding Level of Fair Value Hierarchy of Outstanding Derivative Contracts Recorded as Liabilities


Liability Derivatives	Level		December 31, 2012		December 31, 2011
Derivatives designated as hedging instruments:
Other current liabilities:
Aluminum contracts		1	$	13	$	47
Aluminum contracts		3		35		32
Other noncurrent liabilities and deferred credits:
Aluminum contracts		1		1		4
Aluminum contracts		3		573		570
Total derivatives designated as hedging instruments			$	622	$	653
Derivatives not designated as hedging instruments*:
Other current liabilities:
Aluminum contracts		1	$	1	$	12
Aluminum contracts		2		21		23
Embedded credit derivative		3		3		-
Other noncurrent liabilities and deferred credits:
Aluminum contracts		1		-		1
Aluminum contracts		2		5		21
Embedded credit derivative		3		27		28
Total derivatives not designated as hedging instruments			$	57	$	85
Less margin posted**:
Other current liabilities:
Aluminum contracts		1	$	-	$	1
Total Liability Derivatives			$	679	$	737

*	See the “Other” section within Note X for additional information on Alcoa’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies.

Schedule of Net Fair Values of Outstanding Derivative Contracts and Effect of Hypothetical Change (Increase or Decrease of 10%) in Market Prices or Rates


	Fair value asset/(liability)			Index change of + / - 10%
Aluminum contracts	$	(85	)	$	111
Embedded credit derivative		(30	)		3
Energy contracts		3			249
Foreign exchange contracts		1			8
Interest rate contracts		28			1

Schedule of Derivative Contract Assets and Liabilities that are Measured and Recognized at Fair Value on Recurring Basis


December 31,	2012			2011
Assets:
Level 1	$	27		$	57
Level 2		45			47
Level 3		550			12
Margin held		(26	)		(22	)
Total	$	596		$	94
Liabilities:
Level 1	$	15		$	64
Level 2		26			44
Level 3		638			630
Margin posted		-			(1	)
Total	$	679		$	737

Schedule of Reconciliation of Activity for Derivative Contracts


	Assets					Liabilities
2012	Aluminum contracts			Energy contracts		Aluminum contracts			Embedded credit derivative			Energy contracts
Opening balance—January 1, 2012	$	10		$	2	$	602		$	28		$	-
Total gains or losses (realized and unrealized) included in:
Sales		(8	)		-		(33	)		-			-
Cost of goods sold		(107	)		-		-			(1	)		-
Other income, net		16			-		-			3			-
Other comprehensive loss		10			1		39			-			-
Purchases, sales, issuances, and settlements*		596			-		-			-			-
Transfers into and (or) out of Level 3*		-			-		-			-			-
Foreign currency translation		30			-		-			-			-
Closing balance—December 31, 2012	$	547		$	3	$	608		$	30		$	-
Change in unrealized gains or losses included in earnings for derivative contracts held at December 31, 2012:
Sales	$	-		$	-	$	-		$	-		$	-
Cost of goods sold		-			-		-			-			-
Other income, net		16			-		-			3			-


	Assets					Liabilities
2011	Aluminum contracts		Energy contracts			Aluminum contracts			Embedded credit derivative			Energy contracts
Opening balance—January 1, 2011	$	-	$	9		$	702		$	24		$	62
Total gains or losses (realized and unrealized) included in:
Sales		-		-			(63	)		-			-
Cost of goods sold		-		-			-			(1	)		(14	)
Other income, net		-		-			-			5			(48	)
Other comprehensive loss		5		(7	)		(37	)		-			-
Purchases, sales, issuances, and settlements**		5		-			-			-			-
Transfers into and (or) out of Level 3**		-		-			-			-			-
Foreign currency translation		-		-			-			-			-
Closing balance—December 31, 2011	$	10	$	2		$	602		$	28		$	-
Change in unrealized gains or losses included in earnings for derivative contracts held at December 31, 2011:
Sales	$	-	$	-		$	-		$	-		$	-
Cost of goods sold		-		-			-			-			-
Other income, net		-		-			-			5			-

**	In 2011, there was an issuance of a Level 3 financial instrument related to a natural gas supply contract (see below). There were no purchases, sales, or settlements of Level 3 financial instruments. Additionally, there were no transfers of financial instruments into or out of Level 3.

Schedule of Quantitative Information for Level 3 Derivative Contracts

The following table presents quantitative information for Level 3 derivative contracts:


	Fair value at December 31, 2012*		Valuation technique	Unobservable input	Range ($ in full amounts)
Assets:
Aluminum contract	$	2	Discounted cash flow	Interrelationship of future aluminum and oil prices	Aluminum: $2,037 per metric ton in 2013 to $2,542 per metric ton in 2018 Oil: $90 to $111 per barrel
Aluminum contract		537	Discounted cash flow	Interrelationship of future aluminum prices, foreign currency exchange rates, and the U.S. consumer price index (CPI)	Aluminum: $2,046 per metric ton in 2013 to $2,400 per metric ton in 2016 Foreign currency: A$1 = $1.03 in 2013 to $0.94 in 2016 CPI: 1982 base year of 100 and 232 in 2013 to 254 in 2016
Energy contracts		3	Discounted cash flow	Price of electricity beyond forward curve	$78 per megawatt hour in 2013 to $170 per megawatt hour in 2036
Liabilities:
Aluminum contracts		600	Discounted cash flow	Price of aluminum beyond forward curve	$2,790 per metric ton in 2023 to $3,002 per metric ton in 2027
Embedded credit derivative		30	Discounted cash flow	Credit spread between Alcoa and counterparty	1.63% to 1.91% (1.77% median)

Schedule of Gain or Loss on Hedged Items and Derivative Contracts

The gain or loss on the hedged items are included in the same line items as the loss or gain on the related derivative contracts as follows (there were no contracts that ceased to qualify as a fair value hedge in any of the periods presented):


Derivatives in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in Earnings on Derivatives		Amount of Gain or (Loss) Recognized in Earnings on Derivatives
Derivatives in Fair Value Hedging Relationships			2012			2011			2010
Aluminum contracts*		Sales	$	(9	)	$	(126	)	$	38
Interest rate contracts		Interest expense		10			64			90
Total			$	1		$	(62	)	$	128

Hedged Items in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in Earnings on Hedged Items		Amount of Gain or (Loss) Recognized in Earnings on Hedged Items
Hedged Items in Fair Value Hedging Relationships			2012			2011			2010
Aluminum contracts		Sales	$	(9	)	$	133		$	(41	)
Interest rate contracts		Interest expense		(10	)		(31	)		(62	)
Total			$	(19	)	$	102		$	(103	)

*	In 2012, 2011, and 2010, the amount of gain or (loss) recognized in earnings represents $(18), $7, and $(3), respectively, related to the ineffective portion of the hedging relationships.

Schedule of Gains and Losses on Derivative Excluded from Assessment of Effectiveness Recognized in Current Earnings

Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.


Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)									Location of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)*									Location of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)**
	2012			2011			2010				2012			2011			2010				2012			2011		2010
Aluminum contracts	$	(10	)	$	72		$	(6	)	Sales	$	36		$	(114	)	$	(106	)	Other (income) expenses, net	$	(1	)	$	2	$	-
Energy contracts		-			(3	)		(10	)	Cost of goods sold		-			(8	)		(25	)	Other (income) expenses, net		-			-		-
Foreign exchange contracts		-			1			(3	)	Sales		-			4			(6	)	Other (income) expenses, net		-			-		-
Interest rate contracts		-			(2	)		(1	)	Interest expense		(2	)		-			(1	)	Other (income) expenses, net		-			-		-
Interest rate contracts		(2	)		(5	)		(1	)	Other (income) expenses, net		-			(3	)		-		Other (income) expenses, net		-			-		-
Total	$	(12	)	$	63		$	(21	)		$	34		$	(121	)	$	(138	)		$	(1	)	$	2	$	-

*	Assuming market rates remain constant with the rates at December 31, 2012, a loss of $23 is expected to be recognized in earnings over the next 12 months.

Schedule of Outstanding Forward Contracts that were Entered into Hedge Forecasted Transactions

Alcoa had the following outstanding forward contracts that were entered into to hedge forecasted transactions:


December 31,	2012		2011
Aluminum contracts (kmt)		1,120		1,294
Energy contracts:
Electricity (megawatt hours)		100,578,295		100,578,295
Natural gas (million British thermal units)		19,160,000		-
Foreign exchange contracts	$	71	$	-

Schedule of Fair Value Gains and Losses on Derivatives Contracts Recorded in Earnings

Alcoa has certain derivative contracts that do not qualify for hedge accounting treatment and, therefore, the fair value gains and losses on these contracts are recorded in earnings as follows:


Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Earnings on Derivatives	Amount of Gain or (Loss) Recognized in Earnings on Derivatives
Derivatives Not Designated as Hedging Instruments		2012			2011			2010
Aluminum contracts	Sales	$	-		$	(13	)	$	5
Aluminum contracts	Other (income) expenses, net		16			13			(18	)
Embedded credit derivative	Other (income) expenses, net		(3	)		(5	)		(2	)
Energy contract	Other (income) expenses, net		-			47			(23	)
Foreign exchange contracts	Other (income) expenses, net		-			(3	)		6
Total		$	13		$	39		$	(32	)

Schedule of Carrying Values and Fair Values of Other Financial Instruments

The carrying values and fair values of Alcoa’s other financial instruments were as follows:


December 31,	2012				2011
December 31,	Carrying value		Fair value		Carrying value		Fair value
Cash and cash equivalents	$	1,861	$	1,861	$	1,939	$	1,939
Restricted cash		189		189		25		25
Noncurrent receivables		20		20		30		30
Available-for-sale securities		67		67		92		92
Short-term borrowings		53		53		62		62
Commercial paper		-		-		224		224
Long-term debt due within one year		465		465		445		445
Long-term debt, less amount due within one year		8,311		9,028		8,640		9,274

Quarterly Data (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Quarterly Data

Supplemental Financial Information (unaudited)

Quarterly Data

(in millions, except per-share amounts)


	First			Second			Third			Fourth			Year
2012
Sales	$	6,006		$	5,963		$	5,833		$	5,898		$	23,700

Amounts attributable to Alcoa common shareholders:
Income (loss) from continuing operations	$	94		$	(2	)	$	(143	)	$	242		$	191
Loss from discontinued operations		-			-			-			-			-
Net income (loss)	$	94		$	(2	)	$	(143	)	$	242		$	191
Earnings per share attributable to Alcoa common shareholders*:
Basic:
Income (loss) from continuing operations	$	0.09		$	-		$	(0.13	)	$	0.23		$	0.18
Loss from discontinued operations		-			-			-			-			-
Net income (loss)	$	0.09		$	-		$	(0.13	)	$	0.23		$	0.18
Diluted:
Income (loss) from continuing operations	$	0.09		$	-		$	(0.13	)	$	0.21		$	0.18
Loss from discontinued operations		-			-			-			-			-
Net income (loss)	$	0.09		$	-		$	(0.13	)	$	0.21		$	0.18
2011
Sales	$	5,958		$	6,585		$	6,419		$	5,989		$	24,951

Amounts attributable to Alcoa common shareholders:
Income (loss) from continuing operations	$	309		$	326		$	172		$	(193	)	$	614
(Loss) income from discontinued operations		(1	)		(4	)		-			2			(3	)
Net income (loss)	$	308		$	322		$	172		$	(191	)	$	611
Earnings per share attributable to Alcoa common shareholders*:
Basic:
Income (loss) from continuing operations	$	0.29		$	0.31		$	0.16		$	(0.18	)	$	0.58
(Loss) income from discontinued operations		-			(0.01	)		-			-			(0.01	)
Net income (loss)	$	0.29		$	0.30		$	0.16		$	(0.18	)	$	0.57
Diluted:
Income (loss) from continuing operations	$	0.27		$	0.28		$	0.15		$	(0.18	)	$	0.55
(Loss) income from discontinued operations		-			-			-			-			-
Net income (loss)	$	0.27		$	0.28		$	0.15		$	(0.18	)	$	0.55

*	Per share amounts are calculated independently for each period presented; therefore, the sum of the quarterly per share amounts may not equal the per share amounts for the year.

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	1 Months Ended					12 Months Ended
	Dec. 31, 2012 USD ($)	Jul. 31, 2012	Sep. 30, 2011	Jan. 31, 2011	Jan. 31, 2010 USD ($)	Dec. 31, 2012 USD ($) yr Reporting_Unit	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Mar. 31, 2010 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Percent of equity investments in other entity, maximum	50.00%					50.00%
Original maturity of cash equivalents						3 months
Number of reporting units being subjected to goodwill impairment test \| Reporting_Unit						9
Minimum number of reporting units being subjected for goodwill impairment test \| Reporting_Unit						3
Percentage of total goodwill allocated to reporting units						90.00%
Goodwill	$ 5,170					$ 5,170	$ 5,157	$ 5,028
Minimum percentage of estimated fair value of reporting unit to be less than carrying amount of goodwill			50.00%
Market capitalization of common stock	9,263
Maximum hedging contracts period, in years \| yr						5
Change in functional currency of certain Brazilian operations					$ 309
Businesses expected to be disposed within, years \| yr						1
Goodwill impairment threshold, maximum		50.00%	50.00%	50.00%
Effect of change in accounting principle presented on financial statement, before tax									$ 250
Alcoa World Alumina and Chemicals [Member]
Summary Of Significant Accounting Policies [Line Items]
Percent of equity investments in other entity, maximum					60.00%
Alcoa Fastening Systems [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	1,160					$ 1,160
Alcoa Power and Propulsion [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	1,628					1,628
Primary Metals [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	997					$ 997
Estimated fair value exceeded percentage on carrying value						9.20%
Engineered Products and Solutions [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of reporting units \| Reporting_Unit						5
Minimum [Member] \| Bauxite mining [Member]
Summary Of Significant Accounting Policies [Line Items]
Period of mining						1 year
Maximum [Member] \| Bauxite mining [Member]
Summary Of Significant Accounting Policies [Line Items]
Period of mining						5 years
Alumina [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	10					$ 10	11	12
Estimated fair value exceeded percentage on carrying value						7.40%
Alumina [Member] \| Alcoa World Alumina and Chemicals [Member]
Summary Of Significant Accounting Policies [Line Items]
Percent of equity investments in other entity, maximum					40.00%
Alumina [Member] \| Primary Metals [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of reporting units \| Reporting_Unit						4
Global Rolled Products [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	$ 214					$ 214	$ 208	$ 207
Estimated fair value exceeded percentage on carrying value						150.00%

Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Structures and Machinery and Equipment (Detail)	12 Months Ended
	Dec. 31, 2012
Structures [Member] \| Alumina refining [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	30 years
Structures [Member] \| Bauxite mining [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	33 years
Structures [Member] \| Aluminum smelting [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	35 years
Structures [Member] \| Power generation [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	34 years
Structures [Member] \| Global Rolled Products [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	32 years
Structures [Member] \| Engineered Products and Solutions [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	29 years
Machinery and equipment [Member] \| Alumina refining [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	25 years
Machinery and equipment [Member] \| Bauxite mining [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	19 years
Machinery and equipment [Member] \| Aluminum smelting [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	21 years
Machinery and equipment [Member] \| Power generation [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	24 years
Machinery and equipment [Member] \| Global Rolled Products [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	21 years
Machinery and equipment [Member] \| Engineered Products and Solutions [Member]
Property, Plant and Equipment [Line Items]
Weighted-average useful lives of assets, years	18 years

Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Software and Other Intangible Assets (Detail)	12 Months Ended
	Dec. 31, 2012
Software [Member] \| Alumina [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives of other intangible assets	10 years
Software [Member] \| Primary Metals [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives of other intangible assets	9 years
Software [Member] \| Global Rolled Products [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives of other intangible assets	10 years
Software [Member] \| Engineered Products and Solutions [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives of other intangible assets	9 years
Other Intangible Assets [Member] \| Primary Metals [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives of other intangible assets	36 years
Other Intangible Assets [Member] \| Global Rolled Products [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives of other intangible assets	13 years
Other Intangible Assets [Member] \| Engineered Products and Solutions [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted-average useful lives of other intangible assets	19 years

Discontinued Operations and Assets Held for Sale - Schedule of Selected Financial Information of Discontinued Operations (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Discontinued Operations [Line Items]
Sales
Loss from operations before income taxes		(4)	(11)
Benefit for income taxes		1	3
Loss from discontinued operations		$ (3)	$ (8)

- Definition

Overall income (loss) from a disposal group that is classified as a component of the entity, before income tax, reported as a separate component of income before extraordinary items. Includes the following (before income tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References + Details

- Definition

Tax effect allocated to a disposal group that is classified as a component of the entity reported as a separate component of income before extraordinary items. Includes the tax effects of the following: income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Amount of income (loss) from a disposal group, net of income tax before extraordinary items allocable to noncontrolling interests. Includes, net of tax, income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.12)
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-Paragraph 13
-Article 7

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 15
-Article 5

+ Details

Discontinued Operations and Assets Held for Sale - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Wire Harness and Electrical Portion of the EES Business [Member]
Loss resulting from contract settlement, net of tax	$ 3
Loss resulting from contract settlement, pretax	$ 5
Gain (loss) from divestiture		$ 6
Gain (loss) from divestiture, pretax		9
Electronics Portion of the EES Business [Member]
Gain (loss) from divestiture		2
Gain (loss) from divestiture, pretax		3
Reversal of the gain		2
Reversal of the gain (Pretax)		2
Loss from settling of working capital, net of tax		2
Loss from settling of working capital, pretax		$ 4

Discontinued Operations and Assets Held for Sale - Schedule of Major Classes of Assets and Liabilities of Operations Held for Sale (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Assets Held For Sale [Line Items]
Properties, plants, and equipment	$ 2	$ 136
Goodwill		94
Other assets		13
Assets held for sale	2	243
Accounts payable, trade		1
Accrued expenses	1	5
Liabilities of operations held for sale	$ 1	$ 6

Asset Retirement Obligations - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($) Structure	Dec. 31, 2011 USD ($)
Asset Retirement Obligations [Line Items]
Estimated CARO ranges per structure, minimum	$ 1
Estimated CARO ranges per structure, maximum	$ 52
Number of structures required to demolish \| Structure	132
Current liability	$ 75	$ 76

Asset Retirement Obligations - Schedule of Carrying Value of Recorded AROs by Major Category (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Asset Retirement Obligations [Line Items]
Spent pot lining disposal	$ 182	$ 187
Closure of bauxite residue areas	190	173
Mine reclamation	189	164
Demolition	28	34
Landfill closure	17	17
Other	4	4
Asset retirement obligation, total	$ 610	$ 579	$ 534

- Definition

The estimated amount of costs required as of the balance sheet date to comply with regulatory requirements pertaining to the retirement of a waste management facility, which will be paid after one year or beyond the normal operating cycle, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 410
-SubTopic 20
-Section 25
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6392544&loc=d3e6290-110844

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.24)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 410
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=6392692&loc=d3e7535-110849

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 410
-SubTopic 20
-Section 35
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6392603&loc=d3e7037-110846

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 24
-Article 5

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 143
-Paragraph 3, 10, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section A
-Paragraph 8
-Chapter 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Asset Retirement Obligations - Schedule of Changes in Carrying Value of Recorded AROs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Asset Retirement Obligations [Line Items]
Balance at beginning of year	$ 579	$ 534
Accretion expense	25	22
Payments	(81)	(86)
Liabilities incurred	80	115
Foreign currency translation and other	7	(6)
Balance at end of year	$ 610	$ 579

Restructuring and Other Charges - Schedule of Restructuring and Other Charges (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Restructuring Cost and Reserve [Line Items]
Asset impairments	$ 40	$ 150	$ 139
Layoff costs	47	93	43
Other exit costs	21	61	58
Reversals of previously recorded layoff and other exit costs	(21)	(23)	(33)
Restructuring and other charges	$ 87	$ 281	$ 207

- Definition

The charge against earnings in the period for known and estimated costs of termination benefits provided to current employees that are involuntarily terminated under a benefit arrangement associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, excluding costs or losses pertaining to an entity newly acquired in a business combination or a discontinued operation as defined by generally accepted accounting principles and costs associated with one-time termination benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 5.P.4(b))
-URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(10)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 5.P.3)
-URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5-8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 5
-Section P
-Subsection 3, 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 146
-Paragraph 8-13, 20
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS146-1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 112
-Paragraph 7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Restructuring and Other Charges - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($) Person	Dec. 31, 2011 USD ($) Kmt Location Person Potline GeneratingPlant	Dec. 31, 2010 USD ($) Kmt Location Potline Person
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 87	$ 281	$ 207
Restructuring and other charges, after-tax and noncontrolling interests	$ 73	$ 181	130
Number of employees associated with layoff costs \| Person	800	1,600
Restructuring reserve, other adjustment		$ 23	33
Restructuring reserve, other adjustment, after-tax		$ 16	$ 24
Number of U.S. locations permanently shutdown and planned demolition \| Location		2	5
Other exit costs		$ 5	$ 2
Other exit costs, after-tax and noncontrolling interests		$ 4	2
Inventory write-down - permanent shutdown and planned demolition of idled structures			8
Inventory write-down, after-tax and non-controlling interests			5
Number of European smelters, management approved, partial or full curtailment \| GeneratingPlant		3
Number of smelters in Spain where curtailment is planned to be temporary \| GeneratingPlant		2
Layoff costs of positions eliminations		$ 33
Layoff costs of positions eliminations, after-tax		$ 31
Number of employees layoff \| Person		650
Asset impairments	$ 40	$ 150	139
Minimum amount of cash payments expected to be paid beyond the end of the current annual period	50
Maximum amount of cash payments expected to be paid beyond the end of the current annual period	55
Primary Metals [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 20	$ 212	$ 145
Number of employees associated with layoff costs \| Person	250	820	75
Global Rolled Products [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 43	$ 19	$ (11)
Number of employees associated with layoff costs \| Person		470	25
Alumina [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 3	$ 39	$ 12
Number of employees associated with layoff costs \| Person	85	160	60
Engineered Products and Solutions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 13	$ (3)	$ 18
Number of employees associated with layoff costs \| Person	390	20	625
Corporate [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 8	$ 14	$ 43
Number of employees associated with layoff costs \| Person	75	130	90
Divested Businesses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges			$ 22
Restructuring and other charges, after-tax and noncontrolling interests			14
Asset impairments			12
Asset impairments, after-tax			$ 8
Other Miscellaneous Items [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, other adjustment	$ 4
Restructuring reserve, other adjustment, after-tax	4
Rockdale, TX [Member]
Restructuring Cost and Reserve [Line Items]
Number of U.S. locations permanently shutdown and planned demolition \| Location		2
Number of potlines to be shutdown and demolished \| Potline		2
Number of potlines at facility \| Potline		4
Warrick, IN [Member]
Restructuring Cost and Reserve [Line Items]
Number of potlines to be shutdown and demolished \| Potline			1
Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		$ 127
Restructuring and other charges, after-tax and noncontrolling interests		82
Restructuring reserve, other adjustment	30
Restructuring reserve, other adjustment, after-tax	30
Asset impairments			$ 127
Asset impairments, after-tax			80
Other Exit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		36	46
Restructuring and other charges, after-tax and noncontrolling interests		23	29
Other exit costs		1
Other exit costs, after-tax and noncontrolling interests		1
Layoff Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	47	93
Restructuring and other charges, after-tax and noncontrolling interests	29	68
Other Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		23
Restructuring and other charges, after-tax and noncontrolling interests		12
Restructuring reserve, other adjustment	10
Restructuring reserve, other adjustment, after-tax	8
Litigation Matter [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		20
Restructuring and other charges, after-tax and noncontrolling interests		8
Permanent Shutdown and Planned Demolition of Idled Structures [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges			2
Other exit costs		36	46
Other asset impairment charges		$ 127	127
Other restructuring activities, after-tax and noncontrolling interests			$ 1
Permanent Shutdown and Planned Demolition of Idled Structures [Member] \| Alcoa, TN [Member]
Restructuring Cost and Reserve [Line Items]
Reduction in production - result of market conditions, in kmt per year \| Kmt		215
Permanent Shutdown and Planned Demolition of Idled Structures [Member] \| Rockdale, TX [Member]
Restructuring Cost and Reserve [Line Items]
Reduction in production - result of market conditions, in kmt per year \| Kmt		76
Permanent Shutdown and Planned Demolition of Idled Structures [Member] \| Remaining Capacity [Member]
Restructuring Cost and Reserve [Line Items]
Reduction in production - result of market conditions, in kmt per year \| Kmt		191
Permanent Shutdown and Planned Demolition of Idled Structures [Member] \| Frederick, MD [Member]
Restructuring Cost and Reserve [Line Items]
Reduction in production - result of market conditions, in kmt per year \| Kmt			195
Permanent Shutdown and Planned Demolition of Idled Structures [Member] \| Badin, NC [Member]
Restructuring Cost and Reserve [Line Items]
Reduction in production - result of market conditions, in kmt per year \| Kmt			60
Permanent Shutdown and Planned Demolition of Idled Structures [Member] \| Warrick, IN [Member]
Restructuring Cost and Reserve [Line Items]
Reduction of production plan included in asset impairment, kmt \| Kmt			40
Operating Supplies [Member]
Restructuring Cost and Reserve [Line Items]
Inventory write-down - permanent shutdown and planned demolition of idled structures		$ 6
Inventory write-down, after-tax and non-controlling interests		4
Environmental Remediation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		18
Restructuring and other charges, after-tax and noncontrolling interests			$ 14
Other exit costs		18	14
Other exit costs, after-tax and noncontrolling interests		11	9
Asset Retirement Obligations [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		17
Restructuring and other charges, after-tax and noncontrolling interests			30
Other exit costs		17	30
Other exit costs, after-tax and noncontrolling interests		11	$ 19
Restructuring Programs Layoffs 2010 [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees associated with layoff costs \| Person			875
Cash payments made against the layoff reserves	$ 3	$ 7
Restructuring Programs Layoffs 2010 [Member] \| Engineered Products and Solutions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges			$ 43
Restructuring and other charges, after-tax and noncontrolling interests			$ 29
Restructuring Programs Layoffs 2012 [Member]
Restructuring Cost and Reserve [Line Items]
Total number of employees already laid off \| Person	270
Number of positions separated \| Person	800
Cash payments made against the layoff reserves	$ 16
Smelter Curtailments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	10
Restructuring and other charges, after-tax and noncontrolling interests	$ 7
Number of employees associated with layoff costs \| Person	170
Lease and Contract Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, other adjustment	$ 6
Restructuring reserve, other adjustment, after-tax	6
Small Layoff Reserves Related to Prior Periods [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, other adjustment	21
Restructuring reserve, other adjustment, after-tax	15
Portovesme Smelter [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, other adjustment	11
Restructuring reserve, other adjustment, after-tax	$ 11
Portovesme, Italy [Member]
Restructuring Cost and Reserve [Line Items]
Capacity for which management approved partial or full curtailment, in kmt \| Kmt		150
Aviles, Spain [Member]
Restructuring Cost and Reserve [Line Items]
Capacity for which management approved partial or full curtailment, in kmt \| Kmt		46
Capacity of smelters for which management approved partial or full curtailment, in kmt \| Kmt		93
La Coruna, Spain [Member]
Restructuring Cost and Reserve [Line Items]
Capacity for which management approved partial or full curtailment, in kmt \| Kmt		44
Capacity of smelters for which management approved partial or full curtailment, in kmt \| Kmt		87
Restructuring Programs (Layoffs), 2011 [Member]
Restructuring Cost and Reserve [Line Items]
Total number of employees already laid off \| Person	895
Number of positions separated \| Person	1,475
Cash payments made against the layoff reserves	$ 23	$ 24
Spain [Member] \| Smelter Operation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, other adjustment	10
Restructuring reserve, other adjustment, after-tax	$ 7
Total number of employees already laid off \| Person	55

Restructuring and Other Charges - Schedule of Restructuring and Other Charges by Reportable Segments, Pretax (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 87	$ 281	$ 207
Alumina [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	3	39	12
Primary Metals [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	20	212	145
Global Rolled Products [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	43	19	(11)
Engineered Products and Solutions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	13	(3)	18
Segment Total [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	79	267	164
Corporate [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 8	$ 14	$ 43

Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Restructuring Cost and Reserve [Line Items]
Restructuring reserve beginning balance	$ 134	$ 116	$ 226
Cash payments	(57)	(54)	(108)
Restructuring charges	60	130	96
Other	(26)	(58)	(98)
Restructuring reserve ending balance	111	134	116
Layoff Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve beginning balance	77	53	160
Cash payments	(44)	(45)	(93)
Restructuring charges	47	93	43
Other	(21)	(24)	(57)
Restructuring reserve ending balance	59	77	53
Other Exit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve beginning balance	57	63	66
Cash payments	(13)	(9)	(15)
Restructuring charges	13	37	53
Other	(5)	(34)	(41)
Restructuring reserve ending balance	$ 52	$ 57	$ 63

- Definition

The charge against earnings in the period, comprised of costs associated with restructuring activities not otherwise specified in the taxonomy pursuant to a duly authorized plan, excluding a discontinued operation as defined by generally accepted accounting principles. Costs of such activities include those for one-time termination benefits, termination of an operating lease or other contract, consolidating or closing facilities, and relocating employees, but excludes costs associated with the retirement of a long-lived asset and severance costs associated with established compensation plans.

+ References + Details

Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 87	$ 281	$ 207
Restructuring and other charges, after-tax and noncontrolling interests	$ 73	181	130
Environmental Remediation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		18
Restructuring and other charges, after-tax and noncontrolling interests			14
Asset Retirement Obligations [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		$ 17
Restructuring and other charges, after-tax and noncontrolling interests			$ 30

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Goodwill [Line Items]
Goodwill gross, beginning balance	$ 5,185	$ 5,056
Accumulated impairment losses, beginning balance	(28)	(28)
Goodwill, beginning balance	5,157	5,028
Acquisition of businesses	(1)	150
Translation	14	(21)
Goodwill gross, ending balance	5,198	5,185
Accumulated impairment losses, ending balance	(28)	(28)
Goodwill, ending balance	5,170	5,157
Corporate [Member]
Goodwill [Line Items]
Goodwill gross, beginning balance	1,281	1,293
Goodwill, beginning balance	1,281	1,293
Translation	(9)	(12)
Goodwill gross, ending balance	1,272	1,281
Goodwill, ending balance	1,272	1,281
Alumina [Member]
Goodwill [Line Items]
Goodwill gross, beginning balance	11	12
Goodwill, beginning balance	11	12
Translation	(1)	(1)
Goodwill gross, ending balance	10	11
Goodwill, ending balance	10	11
Primary Metals [Member]
Goodwill [Line Items]
Goodwill gross, beginning balance	991	993
Goodwill, beginning balance	991	993
Translation	6	(2)
Goodwill gross, ending balance	997	991
Goodwill, ending balance	997	991
Global Rolled Products [Member]
Goodwill [Line Items]
Goodwill gross, beginning balance	208	207
Goodwill, beginning balance	208	207
Translation	6	1
Goodwill gross, ending balance	214	208
Goodwill, ending balance	214	208
Engineered Products and Solutions [Member]
Goodwill [Line Items]
Goodwill gross, beginning balance	2,694	2,551
Accumulated impairment losses, beginning balance	(28)	(28)
Goodwill, beginning balance	2,666	2,523
Acquisition of businesses	(1)	150
Translation	12	(7)
Goodwill gross, ending balance	2,705	2,694
Accumulated impairment losses, ending balance	(28)	(28)
Goodwill, ending balance	$ 2,677	$ 2,666

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($) Segment
Corporate [Member]
Goodwill [Line Items]
Segment reporting, goodwill	$ 1,247
Alumina [Member]
Goodwill [Line Items]
Segment reporting, goodwill	161
Primary Metals [Member]
Goodwill [Line Items]
Segment reporting, goodwill	751
Global Rolled Products [Member]
Goodwill [Line Items]
Segment reporting, goodwill	62
Engineered Products and Solutions [Member]
Goodwill [Line Items]
Segment reporting, goodwill	$ 273
Alcoa [Member]
Goodwill [Line Items]
Number of reportable segments \| Segment	4

Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets, Gross carrying amount	$ 1,187	$ 1,182
Total other intangible assets, Accumulated amortization	(780)	(701)
Indefinite-lived trade names and trademarks	46	46
Total amortizable intangible assets, Gross carrying amount	1,141	1,136
Total amortizable intangible assets, Accumulated amortization	(780)	(701)
Computer Software [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Gross carrying amount	907	902
Total amortizable intangible assets, Accumulated amortization	(664)	(595)
Patent and Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Gross carrying amount	133	133
Total amortizable intangible assets, Accumulated amortization	(88)	(83)
Other Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets, Gross carrying amount	101	101
Total amortizable intangible assets, Accumulated amortization	$ (28)	$ (23)

Goodwill and Other Intangible Assets - Other Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets, Gross carrying amount	$ 1,187	$ 1,182
Other Intangibles [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets, Gross carrying amount		$ 31

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to the intangible assets	$ 82	$ 86	$ 86
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Expected amortization for the year 2013	80
Expected amortization for the year 2014	80
Expected amortization for the year 2015	80
Expected amortization for the year 2016	80
Expected amortization for the year 2017	80
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Expected amortization for the year 2013	90
Expected amortization for the year 2014	90
Expected amortization for the year 2015	90
Expected amortization for the year 2016	90
Expected amortization for the year 2017	$ 90

Acquisitions and Divestitures - Additional Information (Detail) $ in Millions	1 Months Ended	12 Months Ended
	Jul. 31, 2010 Employees	Dec. 31, 2012 USD ($) a ElectricStation Facility mi	Dec. 31, 2011 USD ($) Employees Location	Dec. 31, 2010 USD ($) Employees Location
Business Acquisition [Line Items]
Business acquisition cost			$ 240
Cash acquired and post-closing adjustments resulted in net purchase price			$ 239
Amount of goodwill recorded		$ 154
Amount of reduction in the initial goodwill amount		1
Amount of goodwill is estimated to be deductible for income tax purposes		60
Additional contingent consideration payable		$ 50
Russia [Member]
Business Acquisition [Line Items]
Number of facilities acquired \| Facility		2
TransDigm Group Inc [Member]
Business Acquisition [Line Items]
Number of employees \| Employees			400
Sales generated in last annual period prior to divestiture				$ 61
TransDigm Group Inc [Member] \| California [Member]
Business Acquisition [Line Items]
Number of business locations \| Location			1
TransDigm Group Inc [Member] \| United Kingdom [Member]
Business Acquisition [Line Items]
Number of business locations \| Location			2
Traco [Member]
Business Acquisition [Line Items]
Business acquisition cost				77
Number of employees \| Employees	650
Amount of goodwill recorded				28
Amount of reduction in the initial goodwill amount			$ 4
Amount of goodwill is estimated to be deductible for income tax purposes			24
Sales generated prior year before acquisition				100
Additional amount to settle working capital			$ 1
Transportation Products Europe [Member]
Business Acquisition [Line Items]
Proceeds from divestiture of businesses				$ 14
Number of employees \| Employees				360
Sales generated in last annual period prior to divestiture				$ 78
Gain from divestiture				5
Gain from divestiture, pretax				$ 5
Transportation Products Europe [Member] \| Divestiture [Member]
Business Acquisition [Line Items]
Number of business locations \| Location				2
Three Hundred Fifty One Megawatt Tapoco Hydroelectric Project [Member]
Business Acquisition [Line Items]
Proceeds from divestiture of businesses		$ 597
Gain (loss) on sale of business		320
Gain (loss) on sale of business, after tax		$ 173
Number of hydroelectric generating stations and dams \| ElectricStation		4
Length of transmission line \| mi		86
Acres of land associated with divestitures \| a		14,500
Allocation of goodwill		$ (94)
Three Hundred Fifty One Megawatt Tapoco Hydroelectric Project [Member] \| Primary Metals Segment [Member]
Business Acquisition [Line Items]
Gain (loss) on sale of business		426
Gain (loss) on sale of business, after tax		275
Three Hundred Fifty One Megawatt Tapoco Hydroelectric Project [Member] \| Corporate [Member]
Business Acquisition [Line Items]
Gain (loss) on sale of business		(106)
Gain (loss) on sale of business, after tax		$ (102)

Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Inventory [Line Items]
Finished goods	$ 542	$ 537
Work-in-process	866	911
Bauxite and alumina	618	656
Purchased raw materials	536	532
Operating supplies	263	263
Inventories, total	$ 2,825	$ 2,899

Inventories - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Inventories Net [Line Items]
Percentage inventories valued on a last in, first out (LIFO) basis	35.00%	35.00%
Total inventories valued on an average-cost basis	$ 770	$ 801
Recognition of income caused by partial liquidations of the lower cost LIFO inventory base, gross	1	2	$ 27
Recognition of income caused by partial liquidations of the lower cost LIFO inventory base, after tax	$ 1	$ 1	$ 17

Properties, Plants, and Equipment, Net - Schedule of Properties, Plants, and Equipment, Net (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Land and land rights, including mines	$ 676	$ 665
Structures	12,198	12,060
Machinery and equipment	23,509	23,237
Properties, plants, and equipment, gross	36,383	35,962
Less: accumulated depreciation, depletion, and amortization	19,190	18,326
Properties, plants, and equipment excluding construction work-in-progress	17,193	17,636
Construction work-in-progress	1,754	1,646
Properties, plants, and equipment, net	18,947	19,282
Global Rolled Products [Member]
Property, Plant and Equipment [Line Items]
Structures	1,232	1,204
Machinery and equipment	5,174	5,059
Engineered Products and Solutions [Member]
Property, Plant and Equipment [Line Items]
Structures	678	648
Machinery and equipment	2,415	2,252
Other [Member]
Property, Plant and Equipment [Line Items]
Structures	760	714
Machinery and equipment	883	764
Alumina [Member] \| Alumina refining [Member]
Property, Plant and Equipment [Line Items]
Structures	3,319	3,280
Machinery and equipment	5,279	5,223
Alumina [Member] \| Bauxite mining [Member]
Property, Plant and Equipment [Line Items]
Structures	1,563	1,597
Machinery and equipment	650	661
Primary Metals [Member] \| Aluminum smelting [Member]
Property, Plant and Equipment [Line Items]
Structures	4,042	3,950
Machinery and equipment	8,114	8,266
Primary Metals [Member] \| Power generation [Member]
Property, Plant and Equipment [Line Items]
Structures	604	667
Machinery and equipment	$ 994	$ 1,012

Properties, Plants, and Equipment, Net - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($) Kmt	Dec. 31, 2011 USD ($) Kmt Mg
Smelting Assets [Member]
Property, Plant and Equipment [Line Items]
Net carrying value of assets \| $	$ 325	$ 166
Net carrying value of other idled smelting assets written off \| Mg		291
Idle capacity of assets, units \| Kmt	591	353
Idled Refining Assets [Member]
Property, Plant and Equipment [Line Items]
Net carrying value of assets \| $	$ 68	$ 65
Idle capacity of assets, units \| Kmt	1,277	1,177

Investments - Schedule of Investments (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Investment [Line Items]
Equity investments	$ 1,782	$ 1,524
Other investments	78	102
Investments, total	$ 1,860	$ 1,626

Investments - Additional Information (Detail) ر.س in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Oct. 31, 2011 USD ($)	Dec. 31, 2012 USD ($) Kmt Subsidiary yr	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2012 SAR (ر.س)
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		50.00%			50.00%
Number of wholly-owned subsidiaries \| Subsidiary		2
Dividends from equity investments		$ 101	$ 100	$ 33
Expanded capacity amount of processed bauxite, in Kmt \| Kmt		100
Outstanding receivable for labor and other employee-related expenses		$ 28	25
Capital investment		1,860	1,626
Capital investment commitment paid-to-date		253	249
Equity investments		1,782	1,524
Fair value of guarantee included in other noncurrent liabilities and deferred credits		494
Other investments		$ 78	102
Ma'aden Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Joint venture shareholders agreement period, years		30 years
Joint venture shareholders agreement, automatic extension additional period, years		20 years
Ownership interest in joint venture	74.90%	74.90%		74.90%
Payment for pro rata share of pre-incorporation costs			22	$ 34
Ownership interest in joint venture at fair market value		14.90%
Alcoa [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest in joint venture		25.10%
Initial investment		$ 80
Capital investment		10,800			ر.س 40,500
Amount invested by Alcoa and Aluminum Financing Limited		$ 1,100
Term of investment by Alcoa and Aluminum Financing Limited, years \| yr		5
Capital investment commitment paid-to-date		$ 661
Equity investments		$ 816	565
Alcoa [Member] \| Alcoa World Alumina and Chemicals [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		60.00%			60.00%
Smelting and Rolling Mill Companies [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest in joint venture				25.10%
Project financing		$ 480		$ 4,035
Portion of project financing representing Alcoa interest in venture		120		$ 1,013
Debt service requirements, principal		121
Debt service requirements, interest maximum		60
Other Noncurrent Liabilities and Deferred Credits [Member]
Schedule of Equity Method Investments [Line Items]
Fair value of guarantee included in other noncurrent liabilities and deferred credits		10	8
Refining and Mining Company [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest in joint venture	25.10%
Project financing	$ 1,992
Portion of project financing representing Alcoa interest in venture	500
Debt service requirements, principal	60
Debt service requirements, interest maximum	$ 25
Combined fair value of guarantees		4	4
Fixed Income Securities [Member]
Schedule of Equity Method Investments [Line Items]
Other investments		$ 67
Equity Securities [Member]
Schedule of Equity Method Investments [Line Items]
Other investments			92
Alumina Limited [Member] \| Alcoa World Alumina and Chemicals [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		40.00%			40.00%
Saudi Arabia Joint Venture [Member] \| Scenario One [Member]
Schedule of Equity Method Investments [Line Items]
Potential forfeiture of letter of credit			350
Saudi Arabia Joint Venture [Member] \| Scenario Two [Member]
Schedule of Equity Method Investments [Line Items]
Potential forfeiture of letter of credit			$ 60
Becancour Smelter [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		49.90%			49.90%
Boke Investment Company [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		100.00%			100.00%
Compagnie Des Bauxites De Guinee [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		51.00%			51.00%
Bauxite mining [Member]
Schedule of Equity Method Investments [Line Items]
Projected capacity amount of processed bauxite, in kmt \| Kmt		4,000
Bauxite mining [Member] \| Halco Mining, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		45.00%			45.00%
Bauxite mining [Member] \| Minerao Rio Do Norte S.A. [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		18.20%			18.20%
Alumina Refinery [Member]
Schedule of Equity Method Investments [Line Items]
Projected capacity amount of processed bauxite, in kmt \| Kmt		1,800
Primary aluminum smelter [Member]
Schedule of Equity Method Investments [Line Items]
Projected capacity amount of processed bauxite, in kmt \| Kmt		740
Rolling mill [Member]
Schedule of Equity Method Investments [Line Items]
Projected capacity amount of processed bauxite, in kmt \| Kmt		380
Smelter Operation [Member] \| Pechiney Reynolds Quebec, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		50.00%			50.00%
Smelter Operation [Member] \| Becancour smelter in Quebec, Canada [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		50.10%			50.10%
Smelter Operation [Member] \| Alcoa [Member]
Schedule of Equity Method Investments [Line Items]
Percent of equity investments in other entity		25.05%			25.05%

Other Noncurrent Assets - Schedule of Other Noncurrent Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Other Noncurrent Assets [Line Items]
Intangibles, net (E)	$ 407	$ 481
Cash surrender value of life insurance	464	455
Value-added tax receivable	408	510
Fair value of derivative contracts (X)	364	44
Prepaid gas transmission contract (N)	363	346
Deferred mining costs, net	223	221
Prepaid pension benefit (W)	86	109
Unamortized debt expense	86	98
Assets held for sale (B)	2	243
Other	309	289
Other assets, noncurrent, total	$ 2,712	$ 2,796

Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Long-term debt	$ 8,776	$ 9,085
Less: amount due within one year	465	445
Long-term debt, excluding amount due within one year	8,311	8,640
6% Notes, due 2012 [Member]
Debt Instrument [Line Items]
Long-term debt		322
6% Notes, due 2013 [Member]
Debt Instrument [Line Items]
Long-term debt	422	422
5.25% Convertible Notes, due 2014 [Member]
Debt Instrument [Line Items]
Long-term debt	575	575
5.55% Notes, due 2017 [Member]
Debt Instrument [Line Items]
Long-term debt	750	750
6.5% Bonds, due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt	250	250
6.75% Notes, due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt	750	750
5.72% Notes, due 2019 [Member]
Debt Instrument [Line Items]
Long-term debt	750	750
6.15% Notes, due 2020 [Member]
Debt Instrument [Line Items]
Long-term debt	1,000	1,000
5.40% Notes, due 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	1,250	1,250
5.87% Notes, due 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	627	627
5.9% Notes, due 2027 [Member]
Debt Instrument [Line Items]
Long-term debt	625	625
6.75% Bonds, due 2028 [Member]
Debt Instrument [Line Items]
Long-term debt	300	300
5.95% Notes due 2037 [Member]
Debt Instrument [Line Items]
Long-term debt	625	625
BNDES Loans, due 2013-2029 [Member]
Debt Instrument [Line Items]
Long-term debt	397	627
Iowa Finance Authority Loan, due 2042 (4.75%) [Member]
Debt Instrument [Line Items]
Long-term debt	250
Other [Member]
Debt Instrument [Line Items]
Long-term debt	$ 205	$ 212

Debt - Schedule of Long-Term Debt (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2012	Jan. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Long-term debt, interest rate	4.75%	6.00%
6% Notes, due 2012 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	6.00%	6.00%
Debt instrument, maturity date	2012
6% Notes, due 2013 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	6.00%		6.00%
Debt instrument, maturity date	2013
5.25% Convertible Notes, due 2014 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	5.25%
Debt instrument, maturity date	2014
5.55% Notes, due 2017 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	5.55%
Debt instrument, maturity date	2017
6.5% Bonds, due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	6.50%
Debt instrument, maturity date	2018
6.75% Notes, due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	6.75%
Debt instrument, maturity date	2018
5.72% Notes, due 2019 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	5.72%
Debt instrument, maturity date	2019
6.15% Notes, due 2020 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	6.15%
Debt instrument, maturity date	2020
5.40% Notes, due 2021 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	5.40%
Debt instrument, maturity date	2021
5.87% Notes, due 2022 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	5.87%
Debt instrument, maturity date	2022
5.9% Notes, due 2027 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	5.90%
Debt instrument, maturity date	2027
6.75% Bonds, due 2028 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	6.75%
Debt instrument, maturity date	2028
5.95% Notes due 2037 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	5.95%
Debt instrument, maturity date	2037
BNDES Loans, due 2013-2029 [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date range, start	2013
Iowa Finance Authority Loan, due 2042 (4.75%) [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	4.75%
Debt instrument, maturity date	2042

Debt - Additional Information (Detail) R$ in Millions, $ in Millions	1 Months Ended					2 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2012 USD ($)	Aug. 31, 2012 USD ($)	Jan. 31, 2012 USD ($)	May 31, 2011 USD ($)	Apr. 30, 2011 USD ($)	Nov. 30, 2012 USD ($)	Mar. 31, 2008 USD ($)	Mar. 31, 2008 BRL (R$)	Jun. 30, 2008 USD ($)	Jun. 30, 2008 BRL (R$)	Dec. 31, 2012 USD ($) yr d Agreement	Dec. 31, 2012 BRL (R$) yr d Agreement	Dec. 31, 2011 USD ($)	Dec. 31, 2011 BRL (R$)	Dec. 31, 2010 USD ($)	Dec. 31, 2012 BRL (R$)	Dec. 31, 2011 BRL (R$)	Jul. 25, 2011 USD ($)	Jun. 30, 2008 BRL (R$)	Mar. 31, 2008 BRL (R$)
Debt Instrument [Line Items]
Principal amount of long-term debt maturing in year 2013	$ 465										$ 465
Principal amount of long-term debt maturing in year 2014	661										661
Principal amount of long-term debt maturing in year 2015	34										34
Principal amount of long-term debt maturing in year 2016	33										33
Principal amount of long-term debt maturing in year 2017	$ 780										780
Payments on long-term debt			$ 322	$ 972							$ 1,489		$ 1,194		$ 1,757
Interest rate of bonds	4.75%		6.00%								4.75%					4.75%
Restricted cash, current	$ 171										$ 171
Debt instrument frequency of periodic payment											Semi-annually	Semi-annually
Redemption date of Bonds											Alcoa has the option through the loan agreement to redeem the Bonds, as a whole or in part, on or after August 1, 2022, on at least 30 days, but not more than 60 days	Alcoa has the option through the loan agreement to redeem the Bonds, as a whole or in part, on or after August 1, 2022, on at least 30 days, but not more than 60 days
Percentage of principal amount repayment											100.00%	100.00%
Senior debt securities issued under shelf registration statement	1,250										$ 1,250		1,250
Net proceeds received from public debt offering											972		1,256		1,126
Aggregate outstanding principal amount																		$ 500
Purchase premiums repaid recorded as interest expense				74
Interest rate swaps terminated, notional amount	550		$ 315								550		550		825
Gain resulting from termination of interest rate swaps, recorded as interest expense											33
Commitment on loan agreement	85										85					R$ 177
Early repayment of outstanding borrowings											20	R$ 38	5	R$ 9
Line of credit facility amount outstanding	311										$ 311		$ 355			637	R$ 661	3,750
Weighted-average interest rate											6.49%	6.49%	7.50%	7.50%
Additional borrowing amount											$ 7	R$ 13	$ 5	R$ 8
Interest rate margin											1.55%	1.55%
Outstanding borrowings	86										$ 86					177
Interest rate of outstanding borrowings											6.55%	6.55%
Letters of credit sublimit under credit facility																		$ 1,000
Extension of maturity period											1 year	1 year
Agreed credit Facility amount											$ 3,700
Approved credit facility amount	50										$ 50
Extended credit facility maturity date											July 25, 2017	July 25, 2017
Short-term borrowings	53										$ 53		62
Accounts payable settlement arrangements	48										48		53
Pension contributions											561		336		$ 113
Aluminio [Member]
Debt Instrument [Line Items]
Line of credit facility amount outstanding	280										$ 280
Weighted-average interest rate											2.32%	2.32%
Weighted-average maturity days \| d											172	172
Debt Principal [Member]
Debt Instrument [Line Items]
Payments on long-term debt				881
Debt Accrued And Unpaid Interest [Member]
Debt Instrument [Line Items]
Payments on long-term debt				17
Second Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Commitment on loan agreement	$ 374										$ 374					R$ 650
Long-term interest rate	2.02%										2.02%					2.02%
Commercial Paper [Member]
Debt Instrument [Line Items]
Aggregate outstanding principal amount													$ 224
Long-term interest rate	0.80%										0.80%		0.60%		0.70%	0.80%	0.60%
Average outstanding commercial paper	$ 354										$ 354		$ 197
Debt instrument maturity date, description											Matures at various times within one year	Matures at various times within one year
Fees paid to maintain credit facility											0.25%	0.25%
Outstanding borrowings	3,275										$ 3,275
First Loan Agreement [Member]
Debt Instrument [Line Items]
Line of credit facility amount outstanding	100										$ 100
Applicable margin on LIBOR											1.25%	1.25%
First Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Commitment on loan agreement							$ 248													R$ 500
Two Term Loan Agreements [Member]
Debt Instrument [Line Items]
Line of credit facility amount outstanding			$ 350
Applicable margin on LIBOR											1.50%	1.50%
Repayment of term loans	200
Third Loan Agreement [Member]
Debt Instrument [Line Items]
Line of credit facility amount outstanding	$ 150										$ 150
Applicable margin on LIBOR											1.375%	1.375%
Repayment of term loans						$ 150
Minimum [Member] \| Commercial Paper [Member]
Debt Instrument [Line Items]
Applicable margin on LIBOR loans											0.50%	0.50%
Maximum [Member] \| Commercial Paper [Member]
Debt Instrument [Line Items]
Applicable margin on LIBOR loans											1.50%	1.50%
5.40% Notes, due 2021 [Member]
Debt Instrument [Line Items]
Interest rate of bonds	5.40%										5.40%					5.40%
Senior debt securities issued under shelf registration statement					$ 1,250
Net proceeds received from public debt offering					1,241
Debt instrument, maturity date											2021	2021
Early repayment of outstanding notes					881
Debt repurchase price, percentage of aggregate principal											101.00%	101.00%
5.40% Notes, due 2021 [Member] \| Brazil Bauxite Mine [Member]
Debt Instrument [Line Items]
Early repayment of outstanding notes					$ 101
5.40% Notes, due 2021 [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Option to redeem notes, period prior to notice to holders, days \| d											30	30
5.40% Notes, due 2021 [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Option to redeem notes, period prior to notice to holders, days \| d											60	60
5.375% Notes, due 2013 [Member]
Debt Instrument [Line Items]
Interest rate of bonds	5.375%										5.375%					5.375%
Debt instrument, maturity date											2013	2013
Early repayment of outstanding notes				284
Aggregate outstanding principal amount				269
6% Notes, due 2013 [Member]
Debt Instrument [Line Items]
Interest rate of bonds	6.00%										6.00%		6.00%			6.00%	6.00%
Debt instrument, maturity date											2013	2013
Tender offer completed, debt amount				400
Aggregate outstanding principal amount				$ 328									$ 422
Two Of The Subloans [Member] \| Second Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Long-term interest rate	1.99%										1.99%					1.99%
Two Of The Subloans [Member] \| Loan Agreement With BNDES [Member]
Debt Instrument [Line Items]
Principal and interest \| R$																R$ 667
Two Of The Subloans [Member] \| Loan Agreement With BNDES [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Interest on subloans											$ 339	R$ 589
Third Subloan [Member] \| Second Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Interest on subloans											$ 35	R$ 61
Third Subloan [Member] \| Loan Agreement With BNDES [Member]
Debt Instrument [Line Items]
Principal and interest \| R$																20
Revolving Credit Agreement [Member]
Debt Instrument [Line Items]
Revolving credit facility, term \| yr											5	5
Agreed credit facility amount	$ 640										$ 640
Revolving Credit Agreement [Member] \| Second Loan Agreement [Member]
Debt Instrument [Line Items]
Revolving credit expiration amount	100										$ 100
Line of credit facility, expiration date											Sep. 30, 2013	Sep. 30, 2013
Revolving Credit Agreement [Member] \| First Loan Agreement [Member]
Debt Instrument [Line Items]
Revolving credit expiration amount	150										$ 150
Line of credit facility, expiration date											Mar. 31, 2013	Mar. 31, 2013
Revolving Credit Agreement [Member] \| Two Term Loan Agreements [Member]
Debt Instrument [Line Items]
Number of revolving credit facility agreements \| Agreement											6	6
Revolving Credit Agreement [Member] \| Third Loan Agreement [Member]
Debt Instrument [Line Items]
Revolving credit expiration amount	100										$ 100
Line of credit facility, expiration date											Sep. 30, 2013	Sep. 30, 2013
Revolving Credit Agreement [Member] \| Fourth Loan Agreement [Member]
Debt Instrument [Line Items]
Revolving credit expiration amount	140										$ 140
Line of credit facility, expiration date											Oct. 31, 2013	Oct. 31, 2013
Revolving Credit Agreement [Member] \| Fifth Loan Agreement [Member]
Debt Instrument [Line Items]
Revolving credit expiration amount	100										$ 100
Line of credit facility, expiration date											Dec. 31, 2013	Dec. 31, 2013
Revolving Credit Agreement [Member] \| Sixth Loan Agreement Member
Debt Instrument [Line Items]
Revolving credit expiration amount	50										$ 50
Line of credit facility, expiration date											Dec. 31, 2015	Dec. 31, 2015
Subloan Of $233 [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Weighted-average interest rate													8.13%	8.13%
Subloan Of $233 [Member] \| First Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Aggregate outstanding principal amount	233										$ 233		$ 233			470	R$ 470
Early repayment of outstanding borrowings											51	R$ 102	131	R$ 209
Line of credit facility amount outstanding													$ 55				102
Subloan Of $15 [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Weighted-average interest rate													5.99%	5.99%
Subloan Of $15 [Member] \| First Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Aggregate outstanding principal amount	$ 15										15		$ 15			R$ 30	30
Early repayment of outstanding borrowings											$ 3	R$ 7	7	R$ 11
Line of credit facility amount outstanding													$ 3				R$ 7
Four Of The Subloans [Member] \| First Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Interest on subloans							$ 233	R$ 470
Long-term interest rate	5.00%										5.00%		6.00%			5.00%	6.00%
Weighted-average margin on long term debt											2.13%	2.13%
Fifth Subloan [Member] \| First Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Interest on subloans									$ 15	R$ 30
Long-term interest rate	2.40%										2.40%					2.40%
Percentage of average cost incurred in raising capital											3.56%	3.56%	3.59%	3.59%
Subloan Of $339 [Member] \| Second Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Aggregate outstanding principal amount	$ 339										$ 339					R$ 589
Early repayment of outstanding borrowings											176	R$ 356	$ 67	R$ 113
Line of credit facility amount outstanding													$ 191				R$ 356
Weighted-average interest rate													7.99%	7.99%
Subloan Of $35 [Member] \| Second Loan Agreement [Member] \| First Loans [Member]
Debt Instrument [Line Items]
Aggregate outstanding principal amount	$ 35										35					R$ 61
Early repayment of outstanding borrowings											$ 22	R$ 46	$ 7	R$ 11
Line of credit facility amount outstanding													$ 23				R$ 42
Weighted-average interest rate													5.61%	5.61%
Three Of The Subloans [Member] \| Loan Agreement With BNDES [Member]
Debt Instrument [Line Items]
Commitment on loan agreement									$ 397										R$ 687
Long-term interest rate									1.48%										1.48%
Midwestern Disaster Area Revenue Bonds Series 2012 Due 2042 [Member]
Debt Instrument [Line Items]
Debt instruments agreement date		August 2012
Proceeds from issuance of bonds		$ 250
Restricted cash		$ 248
Debt instruments maturity date		2042
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date											July 25, 2016	July 25, 2016

Other Noncurrent Liabilities and Deferred Credits - Schedule of Other Noncurrent Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Other Liabilities And Deferred Credits [Line Items]
Fair value of derivative contracts (X)	$ 606	$ 624
Asset retirement obligations (C)	535	503
Environmental remediation (N)	458	289
Deferred income taxes (T)	460	395
Deferred credit related to derivative contract (X)	330
Accrued compensation and retirement costs	322	304
Deferred alumina sales revenue	108	116
Other	259	197
Other noncurrent liabilities and deferred credits, total	$ 3,078	$ 2,428

Noncontrolling Interests - Schedule of Noncontrolling Shareholders' Interests (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Other	$ 29	$ 27
Noncontrolling shareholders' interests	3,324	3,351
Alcoa World Alumina and Chemicals [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Noncontrolling shareholders' interests	$ 3,295	$ 3,324

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which is directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent (that is, noncontrolling interest, previously referred to as minority interest).

+ References + Details

Noncontrolling Interests - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Noncontrolling Interest [Line Items]
Proceeds from noncontrolling shareholder	$ 171	$ 169	$ 162

Contingencies and Commitments - Additional Information (Detail) € in Millions, R$ in Millions, R in Millions, $ in Millions, $ in Millions		1 Months Ended										3 Months Ended	6 Months Ended	12 Months Ended
	Jan. 20, 2011 USD ($)	Oct. 31, 2012 USD ($)	Sep. 30, 2012 USD ($)	Aug. 31, 2012 USD ($)	May 31, 2011 USD ($)	Jun. 30, 2009 d	Nov. 30, 2008 USD ($)	Jan. 31, 2007 EUR (€) yr d	Nov. 30, 2006 Person	Jul. 31, 2006 yr	Jun. 30, 2003 yr	Jun. 30, 2012 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2012 EUR (€) MWh Kmt Installment yr MW	Dec. 31, 2012 USD ($) MWh Installment yr MW	Dec. 31, 2012 BRL (R$) MWh Installment yr MW	Dec. 31, 2012 AUD ($) MWh Installment yr MW	Dec. 31, 2012 ZAR (R) MWh Installment yr MW	Dec. 31, 2011 USD ($)	Dec. 31, 2011 AUD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2005 USD ($)	Dec. 31, 2004 USD ($)	Dec. 31, 2004 AUD ($)	Dec. 31, 2012 USD ($) Kmt	Dec. 31, 2012 BRL (R$) Kmt	Dec. 31, 2012 AUD ($) Kmt	Oct. 09, 2012 USD ($)	Dec. 31, 2011 BRL (R$)	Nov. 08, 2011 d	Mar. 24, 2010 USD ($)	Nov. 19, 2009 EUR (€)	Nov. 19, 2009 USD ($)	Feb. 27, 2008 yr	Jan. 31, 2007 USD ($)
Loss Contingencies [Line Items]
Number of days required to dismiss lawsuit \| d																															30
Restructuring and other charges															$ 87.0				$ 281.0		$ 207.0
Restructuring and other charges, after-tax and noncontrolling interests															73.0				181.0		130.0
Alcoa's maximum exposure to loss in projects														€ 303												$ 375.0
Trial length, number of days \| d						8
Management estimate for maximum exposure from class action														85												110.0
Provision for contract losses \| €														39
Recovery amount														303	375.0
Reduction in recovery amount														53												65.0
Payments to Italian Government														250	310.0
Payments to Italian Government, installments amount														€ 50	$ 66.0
Number of installments, litigation payment \| Installment														5	5	5	5	5
Litigation reserve														€ 159												209.0
Range of reasonable possible loss, minimum														€ 159												$ 209.0
Amount of curtailment, in kmt-per-year \| Kmt														44												44	44	44
Days provided to submit observations and comments to the EC \| d								30
Number of cleanup locations														More than 100	More than 100	More than 100	More than 100	More than 100
Remediation reserve balance																			347.0							$ 532.0
Remediation reserve balance, classified as a current liability																			58.0							74.0
Payments related to remediation expenses applied against the reserve															$ 22.0				19.0
Increase and decrease in reserves due to effects of foreign currency translation															$ 1.0				(1.0)
Percentage of current power self-sufficiency														70.00%	70.00%	70.00%	70.00%	70.00%
Total energy demand \| MW														690	690	690	690	690
Purchase obligations due in 2013																										176.0
Purchase obligations due in 2014																										175.0
Purchase obligations due in 2015																										176.0
Purchase obligations due in 2016																										165.0
Purchase obligations due in 2017																										165.0
Purchase obligations due thereafter																										2,688.0
Purchase obligations expenditures															$ 161.0				227.0		129.0
Operating leases, expense															$ 244.0				255.0		260.0
Long-term operating leases, minimum annual rentals due in 2013																										198.0
Long-term operating leases, minimum annual rentals due in 2014																										155.0
Long-term operating leases, minimum annual rentals due in 2015																										127.0
Long-term operating leases, minimum annual rentals due in 2016																										102.0
Long-term operating leases, minimum annual rentals due in 2017																										77.0
Long-term operating leases, minimum annual rentals due thereafter																										597.0
Guarantees of third party related to project financing																										605.0
Guarantees, total amount committed																										494.0
Letters of credit, total amount committed																										299.0
Letters of credit, expiration date														2013	2013	2013	2013	2013
Total amount committed under outstanding surety bonds																										193.0
Aerospace Fasteners Business [Member]
Loss Contingencies [Line Items]
Remediation reserve increase																			3.0
Italian Government [Member]
Loss Contingencies [Line Items]
Number of years operating under a power supply structure \| yr										10
Charge related to European Commission announcement																																	€ 173	$ 250.0
Write-off of receivable																																	14	20.0
Establishment reserve																																	€ 159	$ 230.0
Spanish Government [Member]
Loss Contingencies [Line Items]
Number of years operating under a power supply structure \| yr								9
Tariffs Granted by Spain [Member]
Loss Contingencies [Line Items]
Alcoa's maximum exposure to loss in projects								€ 70																												$ 90.0
Massena West, Ny [Member]
Loss Contingencies [Line Items]
Remediation reserve increase															$ 206.0
Remediation reserve adjustment																										165.0
Period of time between potential phenomenon occurrences, years \| yr											10
Smelter Operation [Member]
Loss Contingencies [Line Items]
Remediation reserve increase															30.0
East St. Louis, IL Site [Member]
Loss Contingencies [Line Items]
Remediation reserve increase															14.0								$ 15.0
Remediation reserve adjustment																										14.0
Sherwin, TX site [Member]
Loss Contingencies [Line Items]
Remediation reserve balance																										30.0
Other sites [Member]
Loss Contingencies [Line Items]
Remediation reserve increase															12.0				13.0
U.S. Smelters [Member]
Loss Contingencies [Line Items]
Remediation reserve increase																			31.0
Remediation reserve adjustment																			18.0
Grasse River [Member]
Loss Contingencies [Line Items]
Remediation reserve increase		$ 128.0					$ 40.0						$ 37.0		$ 1.0						$ 2.0
Remediation reserve adjustment																																$ 17.0
Fusina [Member]
Loss Contingencies [Line Items]
Remediation reserve increase																						$ 12.0
Portovesme [Member]
Loss Contingencies [Line Items]
Remediation reserve increase																						$ 3.0
Baie Comeau [Member]
Loss Contingencies [Line Items]
Remediation reserve increase				$ 25.0
Mosjoen [Member]
Loss Contingencies [Line Items]
Remediation reserve increase			$ 20.0
Machadinho and Barra Grande [Member]
Loss Contingencies [Line Items]
Commitment to taking share of output in associated projects at cost, in years \| yr														30	30	30	30	30
Serrado Facao and Estreito Projects [Member]
Loss Contingencies [Line Items]
Commitment to taking share of output in associated projects at cost, in years \| yr														26	26	26	26	26
Barra Grande [Member]
Loss Contingencies [Line Items]
Investment percentage														42.18%	42.18%	42.18%	42.18%	42.18%
Assured power from installed capacity \| MWh														160	160	160	160	160
Total investment in projects																			169.0							159.0	R$ 326			R$ 314
Machadinho [Member]
Loss Contingencies [Line Items]
Alcoa's maximum exposure to loss in projects																										120.0	240
Investment percentage														30.99%	30.99%	30.99%	30.99%	30.99%
Assured power from installed capacity \| MWh														120	120	120	120	120
Total investment in projects																			97.0							95.0	195			182
Serra Do Facao Project [Member]
Loss Contingencies [Line Items]
Investment percentage														34.97%	34.97%	34.97%	34.97%	34.97%
Assured power from installed capacity \| MWh														65	65	65	65	65
Total investment in projects																			105.0							98.0	R$ 200			R$ 196
Estimated project costs															$ 490.0			R 1,000
Aluminio's share of project															170.0			350
Additional contributions															170.0			R 350
Dampier to Bunbury Natural Gas Pipeline [Member]
Loss Contingencies [Line Items]
Investment percentage																								20.00%	20.00%
Additional contributions																								$ 141.0	$ 176
Initial cash investment																								$ 17.0	$ 24
Dampier to Bunbury Natural Gas Pipeline [Member] \| Three-Year Equity Call Plan [Member]
Loss Contingencies [Line Items]
Alcoa's maximum exposure to loss in projects																										520.0		$ 500
Additional contributions															12.0		$ 11		5.0	$ 6
Required plan contributions															40.0		40
Repayments made under the agreement for future gas transmission services															$ 363.0		$ 349
Minimum [Member]
Loss Contingencies [Line Items]
Provision for contract losses																										0.0
Expiration date of unconditional purchase obligations for energy														2015	2015	2015	2015	2015
Guarantees, expiration date														2015	2015	2015	2015	2015
Surety bonds, expiration date														2013	2013	2013	2013	2013
Maximum [Member]
Loss Contingencies [Line Items]
Provision for contract losses																										50.0
Expiration date of unconditional purchase obligations for energy														2036	2036	2036	2036	2036
Guarantees, expiration date														2019	2019	2019	2019	2019
Surety bonds, expiration date														2014	2014	2014	2014	2014
Canada and Norway [Member] \| Smelter Operation [Member]
Loss Contingencies [Line Items]
Remediation reserve adjustment																										45.0
Energy, Raw Materials, and Other Goods and Services [Member]
Loss Contingencies [Line Items]
Purchase obligations due in 2013																										3,502.0
Purchase obligations due in 2014																										2,137.0
Purchase obligations due in 2015																										2,085.0
Purchase obligations due in 2016																										1,926.0
Purchase obligations due in 2017																										2,496.0
Purchase obligations due thereafter																										20,717.0
Alcoa [Member]
Loss Contingencies [Line Items]
Litigation reserve														€ 109												143.0
Estreito Project [Member]
Loss Contingencies [Line Items]
Investment percentage														25.49%	25.49%	25.49%	25.49%	25.49%
Assured power from installed capacity \| MWh														150	150	150	150	150
Estimated project costs															$ 2,520.0	R$ 5,170
Aluminio's share of project															640.0	1,320
Increase in estimated costs to complete project															130.0	270
Commitment expended on the project															$ 610.0	R$ 1,250
Outstanding bank guarantees [Member] \| Minimum [Member]
Loss Contingencies [Line Items]
Guarantees, expiration date														2013	2013	2013	2013	2013
Outstanding bank guarantees [Member] \| Maximum [Member]
Loss Contingencies [Line Items]
Guarantees, expiration date														2017	2017	2017	2017	2017
Alba [Member]
Loss Contingencies [Line Items]
Period of alleged conspiracy, years \| yr																																			15
Damages claimed, value															$ 1,000.0
Cash payment for suit settlement												$ 45.0			40.0
Restructuring and other charges												45.0
Restructuring and other charges, after-tax and noncontrolling interests												18.0			15.0
Alcoa's maximum exposure to loss in projects												$ 75.0	$ 75.0
Contingency settlement agreement amount, total															$ 85.0
Contingency settlement agreement amount paid																													$ 42.5
Contingency settlement agreement amount payable																													$ 42.5
Contingency settlement agreement future payable date														October 9, 2013	October 9, 2013	October 9, 2013	October 9, 2013	October 9, 2013
Percentage of equity interest														40.00%	40.00%	40.00%	40.00%	40.00%
Alba [Member] \| Minimum [Member]
Loss Contingencies [Line Items]
Estimated contingency settlement changes, net of tax																										25.0
Alba [Member] \| Maximum [Member]
Loss Contingencies [Line Items]
Estimated contingency settlement changes, net of tax																										$ 30.0
Breaches of Warranty [Member]
Loss Contingencies [Line Items]
Damages awarded to plaintiff, pre-judgment interest					$ 2.0
Negligence Award [Member]
Loss Contingencies [Line Items]
Court granted motion for judgment					$ 10.0
Recurring Costs of Managing Hazardous Substances and Environmental Programs [Member]
Loss Contingencies [Line Items]
Percentage of cost of goods sold														2.00%	2.00%	2.00%	2.00%	2.00%
Curtis vs Alcoa [Member]
Loss Contingencies [Line Items]
Retired former employees involved in class action \| Person									13,000
Scrg Brownfield Recovery Corp Energy Answers Corporation of Puerto Rico [Member]
Loss Contingencies [Line Items]
Court granted motion for judgment																			$ 20.0
Scrg Brownfield Recovery Corp Energy Answers Corporation of Puerto Rico [Member] \| Breaches of Warranty [Member]
Loss Contingencies [Line Items]
Court granted motion for judgment	$ 13.0
Scrg Brownfield Recovery Corp Energy Answers Corporation of Puerto Rico [Member] \| Punitive Damages [Member]
Loss Contingencies [Line Items]
Court granted motion for judgment	6.0
Scrg Brownfield Recovery Corp Energy Answers Corporation of Puerto Rico [Member] \| Property Damages [Member]
Loss Contingencies [Line Items]
Court granted motion for judgment	$ 10.0

Other (Income) Expenses, Net - Schedule of Other Income, Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Component of Other Income, Nonoperating [Line Items]
Equity loss (income)	$ 28	$ (15)	$ (14)
Interest income	(31)	(20)	(19)
Foreign currency (gains) losses, net	(5)	16	13
Net gain from asset sales	(321)	(41)	(9)
Net (gain) loss on mark-to-market derivative contracts	(13)	(52)	37
Other, net	1	25	(3)
Other (income) expenses, net	$ (341)	$ (87)	$ 5

- Definition

This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. This item includes income or expense related to stock-based compensation based on the investor's grant of stock to employees of an equity method investee.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=16385135&loc=d3e33749-111570

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.12)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 9
-Article 5

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 19
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 6
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 11
-Article 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Other (Income) Expenses, Net - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($)
Component of Other Income, Nonoperating [Line Items]
Discrete income tax benefit recognized	$ 24
Tapoco Hydroelectric Project [Member]
Component of Other Income, Nonoperating [Line Items]
Net gain from asset sales	320
Australia [Member]
Component of Other Income, Nonoperating [Line Items]
Net gain on sale of land	$ 43

Cash Flow Information - Schedule of Cash Paid for Interest and Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Supplemental Cash Flow Information [Line Items]
Interest, net of amount capitalized	$ 454	$ 491	$ 452
Income taxes, net of amount refunded	$ 223	$ 382	$ (67)

Cash Flow Information - Schedule of Cash Paid for Acquisitions (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Schedule Of Summary Of Acquisitions Of Properties [Line Items]
Assets acquired	$ 253	$ 87
Liabilities assumed	(12)	(15)
Noncontrolling interests acquired		4
Redemption of convertible securities of subsidiary		40
Reduction in Alcoa shareholders' equity		22
Cash paid	241	138
Less: cash acquired	1
Net cash paid	$ 240	$ 138

Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012
Schedule Of Common Stock [Line Items]
Loan for financing	$ 250
Restricted cash	$ 248			$ 171
Common stock issued to satisfy a portion of accrued pension benefits liability		$ 600	$ 600

Segment and Geographic Area Information - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Minimum revenue percentage from aluminum and alumina	80.00%
Total export sales	$ 2,107	$ 1,988	$ 1,543
Aluminum [Member]
Segment Reporting Information [Line Items]
Sales percentage, maximum	90.00%

Segment and Geographic Area Information - Schedule of Operating Results and Assets of Alcoa's Reportable Segments (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Third-party sales	$ 23,427	$ 24,689	$ 20,746
Intersegment sales	5,350	6,137	4,989
Total sales	28,777	30,826	25,735
Equity income (loss)	(28)	16	13
Depreciation, depletion, and amortization	1,374	1,395	1,369
Income taxes	543	635	443
ATOI	1,369	1,893	1,424
Capital expenditures	1,261	1,287	1,015
Equity investments	1,782	1,524
Goodwill	5,170	5,157	5,028
Total assets	40,179	40,120
Alumina [Member]
Segment Reporting Information [Line Items]
Goodwill	10	11	12
Primary Metals [Member]
Segment Reporting Information [Line Items]
Goodwill	997	991	993
Engineered Products and Solutions [Member]
Segment Reporting Information [Line Items]
Goodwill	2,677	2,666	2,523
Segment Information [Member] \| Alumina [Member]
Segment Reporting Information [Line Items]
Third-party sales	3,092	3,462	2,815
Intersegment sales	2,310	2,727	2,212
Total sales	5,402	6,189	5,027
Equity income (loss)	5	25	10
Depreciation, depletion, and amortization	455	444	406
Income taxes	(27)	179	60
ATOI	90	607	301
Capital expenditures	374	371
Equity investments	658	450
Goodwill	10	11
Total assets	9,709	9,782
Segment Information [Member] \| Primary Metals [Member]
Segment Reporting Information [Line Items]
Third-party sales	7,432	8,240	7,070
Intersegment sales	2,877	3,192	2,597
Total sales	10,309	11,432	9,667
Equity income (loss)	(27)	(7)	1
Depreciation, depletion, and amortization	532	556	571
Income taxes	106	92	96
ATOI	309	481	488
Capital expenditures	318	463
Equity investments	917	925
Goodwill	997	991
Total assets	11,709	11,867
Segment Information [Member] \| Global Rolled Products [Member]
Segment Reporting Information [Line Items]
Third-party sales	7,378	7,642	6,277
Intersegment sales	163	218	180
Total sales	7,541	7,860	6,457
Equity income (loss)	(6)	(3)
Depreciation, depletion, and amortization	229	237	238
Income taxes	167	104	92
ATOI	358	266	220
Capital expenditures	258	157
Equity investments	188	123
Goodwill	214	208
Total assets	4,603	4,559
Segment Information [Member] \| Engineered Products and Solutions [Member]
Segment Reporting Information [Line Items]
Third-party sales	5,525	5,345	4,584
Total sales	5,525	5,345	4,584
Equity income (loss)		1	2
Depreciation, depletion, and amortization	158	158	154
Income taxes	297	260	195
ATOI	612	539	$ 415
Capital expenditures	200	173
Goodwill	2,677	2,666
Total assets	$ 5,891	$ 5,831

Segment and Geographic Area Information - Schedule of Reconciliation of Certain Segment Information to Consolidated Totals (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting, Revenue Reconciling Item [Line Items]
Total segment sales									$ 28,777	$ 30,826	$ 25,735
Elimination of intersegment sales									(5,350)	(6,137)	(4,989)
Corporate									273	262	267
Consolidated sales	$ 5,898	$ 5,833	$ 5,963	$ 6,006	$ 5,989	$ 6,419	$ 6,585	$ 5,958	$ 23,700	$ 24,951	$ 21,013

Segment and Geographic Area Information - Schedule of Segment Reporting Information to Consolidated Net Income Attributable to Alcoa (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Total segment ATOI									$ 1,369	$ 1,893	$ 1,424
Interest expense									(490)	(524)	(494)
Noncontrolling interests									29	(194)	(138)
Discontinued operations										(3)	(8)
Consolidated net income attributable to Alcoa	$ 242	$ (143)	$ (2)	$ 94	$ (191)	$ 172	$ 322	$ 308	191	611	254
Unallocated Amounts (Net of Tax) [Member]
Segment Reporting Information [Line Items]
Impact of LIFO									20	(38)	(16)
Interest expense									(319)	(340)	(321)
Noncontrolling interests									29	(194)	(138)
Corporate expense									(282)	(290)	(291)
Restructuring and other charges									(75)	(196)	(134)
Discontinued operations										(3)	(8)
Other									$ (551)	$ (221)	$ (262)

Segment and Geographic Area Information - Schedule of Segment Reporting Information to Consolidated Assets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Schedule Of Assets By Segment [Line Items]
Total segment assets	$ 31,912	$ 32,039
Elimination of intersegment receivables	(444)	(483)
Cash and cash equivalents	1,861	1,939	$ 1,543	$ 1,481
Corporate goodwill	5,170	5,157	$ 5,028
Corporate fixed assets, net	18,947	19,282
Consolidated assets	40,179	40,120
Unallocated Amounts (Net of Tax) [Member]
Schedule Of Assets By Segment [Line Items]
Cash and cash equivalents	1,861	1,939
Deferred income taxes	4,061	3,738
Corporate goodwill	1,272	1,281
Corporate fixed assets, net	961	935
LIFO reserve	(770)	(801)
Other	$ 1,326	$ 1,472

Segment and Geographic Area Information - Sales by Major Product Grouping (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Product Information [Line Items]
Sales revenue	$ 5,898	$ 5,833	$ 5,963	$ 6,006	$ 5,989	$ 6,419	$ 6,585	$ 5,958	$ 23,700	$ 24,951	$ 21,013
Alumina [Member]
Product Information [Line Items]
Sales revenue									2,962	3,350	2,740
Primary aluminum [Member]
Product Information [Line Items]
Sales revenue									7,121	7,907	6,842
Flat-rolled aluminum [Member]
Product Information [Line Items]
Sales revenue									7,378	7,642	6,277
Investment castings [Member]
Product Information [Line Items]
Sales revenue									1,747	1,700	1,521
Alcoa Fastening Systems [Member]
Product Information [Line Items]
Sales revenue									1,414	1,313	1,070
Architectural aluminum systems [Member]
Product Information [Line Items]
Sales revenue									970	973	884
Aluminum wheels [Member]
Product Information [Line Items]
Sales revenue									692	656	475
Other extruded aluminum and forged products [Member]
Product Information [Line Items]
Sales revenue									955	1,010	930
Other [Member]
Product Information [Line Items]
Sales revenue									$ 461	$ 400	$ 274

Segment and Geographic Area Information - Schedule of Geographic Information for Sales (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales	$ 5,898	$ 5,833	$ 5,963	$ 6,006	$ 5,989	$ 6,419	$ 6,585	$ 5,958	$ 23,700	$ 24,951	$ 21,013
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									12,361	12,295	10,560
Australia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									3,222	3,587	2,842
Brazil [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									1,244	1,371	1,182
Spain [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									1,203	1,487	1,234
Netherlands [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									949	1,025	940
Norway [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									820	927	809
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									807	825	662
Russia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									713	761	584
Hungary [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									492	665	505
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									438	412	331
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									379	537	418
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									326	283	188
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									216	229	231
Other Geographical Regions [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									$ 530	$ 547	$ 527

Segment and Geographic Area Information - Schedule of Geographic Information for Long-Lived Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 18,947	$ 19,282
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	4,621	4,439
Brazil [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	4,318	4,844
Australia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	3,548	3,390
Iceland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	1,571	1,615
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	1,399	1,447
Norway [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	898	894
Russia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	494	531
Spain [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	445	451
Jamaica [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	414	417
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	395	424
Other Geographical Regions [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 844	$ 830

Preferred and Common Stock - Additional Information (Detail) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended	12 Months Ended
	Jan. 31, 2011 USD ($) $ / shares shares	Jan. 31, 2010 USD ($) $ / shares shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2012 USD ($) yr $ / shares shares	Dec. 31, 2011 USD ($) yr $ / shares shares	Dec. 31, 2010 USD ($) $ / shares
Class of Stock [Line Items]
Common Stock authorized			1,800,000,000	1,800,000,000
Common stock, par value per share \| $ / shares			$ 1	$ 1
Common stock issued, in shares			1,177,906,557	1,177,906,557	1,177,906,557
Common stock, dividends yield \| $ / shares			$ 0.03	$ 0.12	$ 0.12	$ 0.12
Newly issued common stock, shares	36,518,563	44,313,146
Newly issued common stock, par value \| $ / shares	$ 16.43	$ 13.54
Newly issued common stock, aggregate value \| $	$ 600	$ 600
Percentage of funded status of pension plans	80.00%
Number of shares reserved for issuance upon conversion of convertible notes, shares				110,000,000
Number of shares reserved for issuance under Alcoa's stock-based compensation plans, shares				86,000,000
Number of years of sales and profitability targets to ascertain grant of performance stock awards \| yr				3	3
Expense related to the acceleration of expense related to retirement-eligible employees \| $				$ 13	$ 18	$ 19
Average period of dividend yield				One-year
Total intrinsic value of options exercised \| $				$ 2	34	8
Cash received from option exercises \| $				12	37	13
Total tax benefit realized from these exercises \| $				1	$ 11	$ 2
Unrecognized compensation costs on non-vested stock option grants (pretax) \| $			$ 22	22
Unrecognized compensation costs on non-vested stock option awards (pretax) \| $			$ 35	$ 35
Unrecognized compensation costs on non-vested awards, weighted average period of recognition in years				1 year 6 months
Preferred Class A [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized			660,000	660,000
Preferred stock, par value per share \| $ / shares			$ 100	$ 100
Cumulative dividend preference per share \| $ / shares				$ 3.75
Preferred stock, shares outstanding			546,024	546,024	546,024
Preferred Class B [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized			10,000,000	10,000,000
Preferred stock, par value per share \| $ / shares			$ 1	$ 1
Stock Awards [Member]
Class of Stock [Line Items]
Vesting period				three

Preferred and Common Stock - Schedule of Share Activity (Detail) - shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury stock, beginning balance	113,494,491	119,362,029	122,695,718
Treasury stock, ending balance	110,694,604	113,494,491	119,362,029
Common Stock Outstanding, beginning balance	1,064,412,066	1,022,025,965	974,378,820
Common Stock Outstanding, ending balance	1,067,211,953	1,064,412,066	1,022,025,965
Outstanding Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Private placement		36,518,563	44,313,146
Conversion of convertible notes			310
Issued for stock-based compensation plans	2,799,887	5,867,538	3,333,689
Treasury Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issued for stock-based compensation plans	(2,799,887)	(5,867,538)	(3,333,689)

- Definition

Number of shares issued during the period as a result of the conversion of convertible securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-30)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30
-Article 5

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 4, 5
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Number of shares (or other type of equity) issued during the period as a result of any equity-based compensation plan other than an employee stock ownership plan (ESOP), net of any shares forfeited. Shares issued could result from the issuance of restricted stock, the exercise of stock options, stock issued under employee stock purchase plans, and/or other employee benefit plans.

+ References + Details

Preferred and Common Stock - Schedule of Share-Based Compensation (Detail)	12 Months Ended
	Dec. 31, 2012
2002 and Prior [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting	1 year
Term	10 years
Reload feature	One reload over option term
2003 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting	3 years
Term	10 years
Reload feature	One reload in 2004 for 1/3 vesting in 2004
2004 - 2009 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting	3 years
Term	6 years
Reload feature	None
2010 And Forward [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting	3 years
Term	10 years
Reload feature	None

Preferred and Common Stock - Schedule of Total Compensation Expense Recognized for All Stock Options and Awards (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock option grants	$ 27	$ 34	$ 44
Stock award grants	40	49	40
Total compensation expense before income taxes	67	83	84
Benefit for income taxes	21	27	27
Total compensation expense, net of income taxes	$ 46	$ 56	$ 57

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Preferred and Common Stock - Schedule of Fair Value of New Options (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Fair Value Assumption Used To Determine Options Fair Value [Line Items]
Weighted average fair value per option	$ 3.11	$ 4.96	$ 4.67
Average risk-free interest rate, minimum	0.06%	0.19%	0.14%
Average risk-free interest rate, maximum	1.89%	3.44%	3.62%
Dividend yield	0.90%	0.90%	1.10%
Volatility, minimum	39.00%	36.00%	47.00%
Volatility, maximum	45.00%	43.00%	51.00%
Annual forfeiture rate	5.00%	5.00%	4.00%
Exercise behavior	45.00%	45.00%	35.00%
Life (years)	5 years 9 months 18 days	5 years 9 months 18 days	5 years 7 months 6 days

Preferred and Common Stock - Schedule of Activity for Stock Options (Detail) - $ / shares shares in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule Of Stock Option Activity [Line Items]
Number of options, beginning of year	46.8	56.1	65.5
Weighted average exercise price, beginning of year	$ 17.41	$ 19.29	$ 24.44
Number of options, Granted	10.5	4.5	9.0
Weighted average exercise price, granted	$ 10.17	$ 16.24	$ 13.52
Number of options, Exercised	(1.5)	(4.3)	(1.6)
Weighted average exercise price, exercised	$ 8.28	$ 8.59	$ 8.34
Number of options, Expired or forfeited	(10.8)	(9.5)	(16.8)
Weighted average exercise price, expired or forfeited	$ 31.83	$ 31.90	$ 37.21
Number of options, Outstanding end of year	45.0	46.8	56.1
Weighted average exercise price outstanding, end of year	$ 12.58	$ 17.41	$ 19.29
Number of options exercisable, end of year	29.8	28.8	30.2
Weighted average exercise price Exercisable, end of year	$ 13.02	$ 20.90	$ 26.91

Preferred and Common Stock - Schedule of Options Fully Vested and/or Expected to Vest (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($) $ / shares shares
Schedule Of Stock Options [Line Items]
Options Fully Vested and/or Expected to Vest, Number of options \| shares	45.0
Options Fully Vested and/or Expected to Vest, Weighted average remaining contractual life, years	4 years 8 months 9 days
Options Fully Vested and/or Expected to Vest, Weighted average exercise price	$ 12.58
Options Fully Vested and/or Expected to Vest, Intrinsic value \| $	$ 7
$6.12 - $8.33 [Member]
Schedule Of Stock Options [Line Items]
Options Fully Vested and/or Expected to Vest, Number of options \| shares	17.9
Options Fully Vested and/or Expected to Vest, Weighted average remaining contractual life, years	2 years 22 days
Options Fully Vested and/or Expected to Vest, Weighted average exercise price	$ 8.33
Options Fully Vested and/or Expected to Vest, Intrinsic value \| $	$ 7
Range of exercise price, lower unit	$ 6.12
Range of exercise price, upper unit	$ 8.33
$8.34 - $11.33 [Member]
Schedule Of Stock Options [Line Items]
Options Fully Vested and/or Expected to Vest, Number of options \| shares	10.3
Options Fully Vested and/or Expected to Vest, Weighted average remaining contractual life, years	8 years 11 months 5 days
Options Fully Vested and/or Expected to Vest, Weighted average exercise price	$ 10.17
Range of exercise price, lower unit	8.34
Range of exercise price, upper unit	$ 11.33
$11.34 - $17.40 [Member]
Schedule Of Stock Options [Line Items]
Options Fully Vested and/or Expected to Vest, Number of options \| shares	11.2
Options Fully Vested and/or Expected to Vest, Weighted average remaining contractual life, years	7 years 2 months 16 days
Options Fully Vested and/or Expected to Vest, Weighted average exercise price	$ 14.47
Range of exercise price, lower unit	11.34
Range of exercise price, upper unit	$ 17.40
$17.41 - $46.77 [Member]
Schedule Of Stock Options [Line Items]
Options Fully Vested and/or Expected to Vest, Number of options \| shares	5.6
Options Fully Vested and/or Expected to Vest, Weighted average remaining contractual life, years	3 months 4 days
Options Fully Vested and/or Expected to Vest, Weighted average exercise price	$ 26.96
Range of exercise price, lower unit	17.41
Range of exercise price, upper unit	$ 46.77

Preferred and Common Stock - Schedule of Options Fully Vested and Exercisable (Detail) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($) $ / shares shares
Schedule Of Stock Options [Line Items]
Options Fully Vested and Exercisable, Number of options \| shares	29.8
Options Fully Vested and Exercisable, Weighted average remaining contractual life, years	2 years 9 months 7 days
Options Fully Vested and Exercisable, Weighted average exercise price	$ 13.02
Options Fully Vested and Exercisable, Intrinsic value \| $	$ 7
$6.12 - $8.33 [Member]
Schedule Of Stock Options [Line Items]
Options Fully Vested and Exercisable, Number of options \| shares	17.9
Options Fully Vested and Exercisable, Weighted average remaining contractual life, years	2 years 22 days
Options Fully Vested and Exercisable, Weighted average exercise price	$ 8.33
Options Fully Vested and Exercisable, Intrinsic value \| $	$ 7
Range of exercise price, lower unit	$ 6.12
Range of exercise price, upper unit	$ 8.33
$8.34 - $11.33 [Member]
Schedule Of Stock Options [Line Items]
Options Fully Vested and Exercisable, Number of options \| shares	0.1
Options Fully Vested and Exercisable, Weighted average remaining contractual life, years	6 years 7 months 24 days
Options Fully Vested and Exercisable, Weighted average exercise price	$ 10.72
Range of exercise price, lower unit	8.34
Range of exercise price, upper unit	$ 11.33
$11.34 - $17.40 [Member]
Schedule Of Stock Options [Line Items]
Options Fully Vested and Exercisable, Number of options \| shares	6.2
Options Fully Vested and Exercisable, Weighted average remaining contractual life, years	7 years 26 days
Options Fully Vested and Exercisable, Weighted average exercise price	$ 14.10
Range of exercise price, lower unit	11.34
Range of exercise price, upper unit	$ 17.40
$17.41 - $46.77 [Member]
Schedule Of Stock Options [Line Items]
Options Fully Vested and Exercisable, Number of options \| shares	5.6
Options Fully Vested and Exercisable, Weighted average remaining contractual life, years	3 months 4 days
Options Fully Vested and Exercisable, Weighted average exercise price	$ 26.96
Range of exercise price, lower unit	17.41
Range of exercise price, upper unit	$ 46.77

Preferred and Common Stock - Summary of Outstanding Stock and Performance Share Awards (Detail)	12 Months Ended
	Dec. 31, 2012 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards, Outstanding beginning Balance	9,300,000
Awards, Granted	4,900,000
Awards, Converted	(1,800,000)
Awards, Forfeited	(700,000)
Awards, Performance share adjustment	200,000
Awards, Outstanding Ending Balance	11,900,000
Weighted average FMV per award, Outstanding beginning Balance \| $ / shares	$ 13.63
Weighted average FMV per award, Granted \| $ / shares	10.08
Weighted average FMV per award, Converted \| $ / shares	8.42
Weighted average FMV per award, Forfeited \| $ / shares	$ 13.49
Weighted average FMV per award, Performance share adjustment	12.74
Weighted average FMV per award, Outstanding Ending Balance \| $ / shares	$ 12.96
Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards, Outstanding beginning Balance	6,400,000
Awards, Granted	3,000,000
Awards, Converted	(1,000,000)
Awards, Forfeited	(500,000)
Awards, Outstanding Ending Balance	7,900,000
Performance Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards, Outstanding beginning Balance	2,900,000
Awards, Granted	1,900,000
Awards, Converted	(800,000)
Awards, Forfeited	(200,000)
Awards, Performance share adjustment	200,000
Awards, Outstanding Ending Balance	4,000,000

Preferred and Common Stock - Schedule of Unrecognized Compensation Expense (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($)
Compensating Balances [Line Items]
2013	$ 38
2014	18
2015	1
Totals	$ 57

Earnings Per Share - Reconciliation of Information Used to Compute Basic and Diluted EPS (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Earnings Per Share Basic And Diluted By Common Class [Line Items]
Income from continuing operations attributable to Alcoa common shareholders	$ 242	$ (143)	$ (2)	$ 94	$ (193)	$ 172	$ 326	$ 309	$ 191	$ 614	$ 262
Less: preferred stock dividends declared									2	2	2
Income from continuing operations available to common equity									189	612	260
Less: dividends and undistributed earnings allocated to participating securities										1	1
Income from continuing operations available to Alcoa common shareholders-basic									189	611	259
Add: interest expense related to convertible notes										30
Income from continuing operations available to Alcoa common shareholders-diluted									$ 189	$ 641	$ 259
Average shares outstanding-basic									1,067	1,061	1,018
Stock options									3	7	6
Stock and performance awards									6	4	1
Convertible notes										89
Average shares outstanding-diluted									1,076	1,161	1,025

Earnings Per Share - Additional Information (Detail) - $ / shares $ / shares in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Participating securities outstanding, maximum	0	2	4
Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares that would have been included in diluted earnings per share calculation	89		89
Stock and Performance Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Participating securities outstanding, nonforfeitable	12	8	4
Equity Unit Purchase Agreements [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive securities	27	27	23
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average exercise price of options	$ 15,410	$ 24,000	$ 32,730

Income Taxes - Components of Income from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Components Of Income Before Taxes [Line Items]
U.S.	$ 394	$ (98)	$ (403)
Foreign	(70)	1,161	951
Income from continuing operations before income taxes	$ 324	$ 1,063	$ 548

Income Taxes - Schedule of Provision for Income Taxes on Income from Continuing Operations (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current:
Federal	$ 85	$ 10	$ 33
Foreign	167	427	409
State and local	9	(1)	(7)
Current provision for income taxes, total	261	436	435
Deferred:
Federal	129	28	37
Foreign	(227)	(211)	(320)
State and local	(1)	2	(4)
Deferred provision for income taxes, total	(99)	(181)	(287)
Provision for income taxes, Total	$ 162	$ 255	$ 148

Income Taxes - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($) yr	Dec. 31, 2010 USD ($)
Income Taxes [Line Items]
Tax benefit included in discontinued operations		$ 1	$ 3
Tax benefit realized from exercise of employee stock options	$ 1	$ 6	2
Unamortized tax-deductible goodwill resulting from intercompany stock sales and reorganizations	$ 97
Minimum unamortized tax-deduction rate on goodwill	30.00%
Maximum unamortized tax-deduction rate on goodwill	34.00%
Noncash charge related to elimination of a deferred tax asset			$ 79
Percentage of temporary tax differences that reverse within the carryforward period	25.00%
Percentage of temporary tax differences that reverse within tax planning strategies	5.00%
Percentage of deferred tax asset exclusive of reversing temporary differences	70.00%
Holiday period, years \| yr		10
Measurement of net deferred tax asset and noncash charge to earnings		$ 60
Decrease to the net deferred tax asset and noncash charge to earnings		$ 120
Income tax benefit for operational losses related to certain foreign jurisdictions that are excluded from the estimated annual effective tax rate calculation	$ 8,000
Percentage of the effect of unrecognized tax benefit, if recorded	6.00%	2.00%	4.00%
Interest and penalties recognized	$ 3	$ 2	$ 1
Income related to accrued interest and penalties	7	2	$ 4
Amount accrued for payment of interest and penalties	$ 15	$ 12

Income Taxes - Reconciliation of U.S. Federal Statutory Rate to Alcoa's Effective Tax Rate for Continuing Operations (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
U.S. federal statutory rate	35.00%	35.00%	35.00%
Taxes on foreign operations	(0.10%)	(11.00%)	(5.40%)
Permanent differences on restructuring charges and asset disposals	10.80%		0.70%
Audit and other adjustments to prior years' accruals	3.50%	(1.10%)	1.20%
Noncontrolling interests	3.80%	0.80%	2.60%
Statutory tax rate and law changes	(0.40%)	0.80%	(5.10%)
Tax law change related to Medicare Part D			14.40%
Changes in valuation allowances	15.20%	2.30%	(8.70%)
Amortization of goodwill related to intercompany stock sales/reorganizations	(7.70%)	(2.80%)	(5.20%)
Change in legal structure of investment	(4.10%)
Interest income related to income tax positions	(1.30%)	(0.20%)
Company-owned life insurance/split-dollar net premiums	(3.90%)	(0.20%)	(1.80%)
Other	(0.80%)	0.40%	(0.80%)
Effective tax rate	50.00%	24.00%	26.90%

Income Taxes - Schedule of Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Deferred Tax Assets And Liabilities [Line Items]
Deferred tax assets, Depreciation	$ 104	$ 74
Deferred tax assets, Employee benefits	2,742	2,668
Deferred tax assets, Loss provisions	368	325
Deferred tax assets, Deferred income/expense	53	45
Deferred tax assets, Tax loss carryforwards	2,186	2,035
Deferred tax assets, Tax credit carryforwards	508	477
Deferred tax assets, Derivatives and hedging activities	117	109
Deferred tax assets, Other	324	315
Deferred tax assets, Gross	6,402	6,048
Deferred tax assets, Valuation allowance	(1,400)	(1,398)
Deferred tax assets, net	5,002	4,650
Deferred tax liabilities, Depreciation	1,015	933
Deferred tax liabilities, Employee benefits	46	51
Deferred tax liabilities, Loss provisions	17	9
Deferred tax liabilities, Deferred income/expense	203	181
Deferred tax liabilities, Tax loss carryforwards
Deferred tax liabilities, Tax credit carryforwards
Deferred tax liabilities, Derivatives and hedging activities	16	43
Deferred tax liabilities, Other	297	288
Deferred tax liabilities, Gross	1,594	1,505
Deferred tax liabilities, Valuation allowance
Deferred tax liabilities, Net	$ 1,594	$ 1,505

Income Taxes - Schedule of Expiration Periods of Deferred Tax Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Tax Credit Carryforward [Line Items]
Tax loss carryforwards	$ 2,186
Tax credit carryforwards	508
Other	3,708
Valuation allowance	(1,400)
Deferred tax assets, net	5,002	$ 4,650
Expires Within 10 Years [Member]
Tax Credit Carryforward [Line Items]
Tax loss carryforwards	332
Tax credit carryforwards	370
Other
Valuation allowance	(212)
Deferred tax assets, net	490
Expires Within 11-20 Years [Member]
Tax Credit Carryforward [Line Items]
Tax loss carryforwards	886
Tax credit carryforwards	73
Other
Valuation allowance	(659)
Deferred tax assets, net	300
No Expiration [Member]
Tax Credit Carryforward [Line Items]
Tax loss carryforwards	968
Tax credit carryforwards	65
Other	762
Valuation allowance	(244)
Deferred tax assets, net	1,551
Other [Member]
Tax Credit Carryforward [Line Items]
Tax loss carryforwards
Tax credit carryforwards
Other	2,946
Valuation allowance	(285)
Deferred tax assets, net	$ 2,661

Income Taxes - Schedule of Changes in Valuation Allowance (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Income Taxes [Line Items]
Balance at beginning of year	$ 1,398	$ 1,268
Increase to allowance	45	157
Release of allowance	(48)	(25)
Foreign currency translation	5	(2)
Balance at end of year	$ 1,400	$ 1,398

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Reconciliation Of Unrecognized Tax Benefits [Line Items]
Balance at beginning of year	$ 51	$ 46	$ 48
Additions for tax positions of the current year
Additions for tax positions of prior years	39	13	30
Reductions for tax positions of prior years	(7)	(3)	(5)
Settlements with tax authorities	(18)	(4)	(22)
Expiration of the statute of limitations			(5)
Foreign currency translation	1	(1)
Balance at end of year	$ 66	$ 51	$ 46

Receivables - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2012
Sold receivables that remain uncollected		$ 37
Sale of customer receivables	$ 304
Cash received for receivables	50
Deferred purchase price receivable	254
Additional funding received		155
Purchase price receivable		18
Accounts receivables		3,339
Cash collections		3,116
Gross cash outflows from deferred purchased receivables		3,339
Gross cash inflows from deferred purchased receivables		$ 3,321
Maximum [Member]
Funding of customer receivables sold	250
Minimum [Member]
Funding of customer receivables sold	$ 50

Receivables - Schedule of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Customer Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of year	$ 46	$ 46
Provision for doubtful accounts	2	19
Write off of uncollectible accounts	(8)	(14)
Recoveries of prior write-offs	(1)	(3)
Other		(2)
Balance at end of year	39	46
Other Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of year	79	87
Provision for doubtful accounts	9	7
Write off of uncollectible accounts	(3)	(3)
Recoveries of prior write-offs	(6)	(5)
Other	(5)	(7)
Balance at end of year	$ 74	$ 79

Interest Cost Components - Schedule of Interest Cost Components (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Amount charged to expense	$ 490	$ 524	$ 494
Amount capitalized	93	101	96
Interest costs, total	$ 583	$ 625	$ 590

Pension and Other Postretirement Benefits - Additional Information (Detail) $ in Millions	1 Months Ended	5 Months Ended	12 Months Ended
	Jan. 31, 2011	May 31, 2010 USD ($)	Dec. 31, 2012 USD ($) yr	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009	Dec. 31, 2008	Jun. 24, 2010 yr Employees Location
Defined Benefit Plan Disclosure [Line Items]
Weighted average discount rate used to determine pension benefit obligation			4.15%	4.90%
Average duration refined yield curve model parallels the plans, years \| yr			10
Average period of historical returns used to calculate expected future returns, in years \| yr			5
Expected long term rate of return on plan assets			8.50%	8.50%	8.75%	8.75%	9.00%
Health care cost trend rate assumed for next year			6.00%	6.50%	6.50%
Health care cost trend rate			4.50%	5.00%	5.00%
Number of years over actual annual health care cost trend experience \| yr			3
Cash contribution to pension plans			$ 561	$ 336	$ 113
Value of common stock shares newly issued				600	600
Percentage of funded status of pension plans	80.00%
Minimum required cash contribution to pension plan in 2012			460
Expenses related to saving and investment plans			$ 146	$ 139	119
Subsequent Event [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected long term rate of return on plan assets			8.50%
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
10-year moving average of actual performance							9.00%
Health care cost trend rate			3.80%
Collateral, which exceeds the value of the securities loaned			105.00%
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Health care cost trend rate			(6.20%)
Collateral, which exceeds the value of the securities loaned			102.00%
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage increase in rate of compensation			3.50%
Average period over which rate of compensation increases, years \| yr			5
Foreign Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Average period of historical returns used to calculate expected future returns, in years \| yr			4
Minimum required cash contribution to pension plan in 2012			$ 140
10-Year Moving Average [Member]
Defined Benefit Plan Disclosure [Line Items]
Period of moving averages used for historical data points used to determine the expected long-term rate of return on plan assets, in years \| yr			10
20-Year Moving Average [Member]
Defined Benefit Plan Disclosure [Line Items]
Period of moving averages used for historical data points used to determine the expected long-term rate of return on plan assets, in years \| yr			20
20-Year Moving Average [Member] \| Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
20-year moving average of actual performance							9.00%
United Steelworkers Labor Agreement [Member]
Defined Benefit Plan Disclosure [Line Items]
Term of labor agreement, in years \| yr								4
Number of employees covered by labor agreement \| Employees								5,400
Number of locations affected by labor agreement \| Location								11
Pretax costs related to preparation for and ratification of new agreement					20
After-tax costs related to preparation for and ratification of new agreement					$ 13
Weighted average discount rate used to determine pension benefit obligation		5.95%				6.15%
Increase in pension liability, plan amendment		$ 166
Increase in net actuarial loss after-tax, plan amendment		108
Increase in net periodic benefit cost, plan amendment		$ 9

Pension and Other Postretirement Benefits - Schedule of Obligations and Funded Status (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at beginning of year	$ 10,339
Fair value of plan assets at end of year	11,043	$ 10,339
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation at beginning of year	13,526
Service cost	(186)	(165)	$ (148)
Interest cost	(639)	(678)	(682)
Settlements		(2)	(2)
Curtailments		9	10
Benefit obligation at end of year	14,751	13,526
Funded status	(3,708)	(3,215)
Less: Amounts attributed to joint venture partners	(40)	(34)
Net funded status	(3,668)	(3,181)
Noncurrent assets	86	109
Current liabilities	(32)	(29)
Noncurrent liabilities	(3,722)	(3,261)
Net amount recognized	(3,668)	(3,181)
Net actuarial loss	5,880	5,191
Prior service cost (benefit)	119	129
Total, before tax effect	5,999	5,320
Less: Amounts attributed to joint venture partners	54	46
Net amount recognized, before tax effect	5,945	5,274
Net actuarial loss	1,073	1,216
Amortization of accumulated net actuarial loss	(384)	(246)
Prior service cost (benefit)	9	42
Amortization of prior service (cost) benefit	(19)	(19)
Total, before tax effect	679	993
Less: Amounts attributed to joint venture partners	8	10
Net amount recognized, before tax effect	671	983
Pension Benefits [Member] \| Change in Benefit Obligation [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation at beginning of year	13,526	12,343
Service cost	203	183
Interest cost	647	687
Amendments	6	40
Actuarial losses	1,120	1,163
Settlements		(32)
Curtailments		(7)
Benefits paid	(833)	(813)
Foreign currency translation impact	82	(38)
Benefit obligation at end of year	14,751	13,526	12,343
Pension Benefits [Member] \| Change in Plan Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Settlements		(34)
Benefits paid	(822)	(805)
Foreign currency translation impact	68	(26)
Fair value of plan assets at beginning of year	10,311	9,451
Actual return on plan assets	925	783
Employer contributions	571	945
Participants' contributions	32	35
Administrative expenses	(42)	(38)
Fair value of plan assets at end of year	11,043	10,311	9,451
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	(14)	(17)	(20)
Interest cost	(131)	(158)	(174)
Settlements			3
Funded status	(2,863)	(2,836)
Less: Amounts attributed to joint venture partners	(4)	(5)
Net funded status	(2,859)	(2,831)
Current liabilities	(256)	(248)
Noncurrent liabilities	(2,603)	(2,583)
Net amount recognized	(2,859)	(2,831)
Net actuarial loss	593	511
Prior service cost (benefit)	(76)	(92)
Total, before tax effect	517	419
Less: Amounts attributed to joint venture partners	(1)	(1)
Net amount recognized, before tax effect	518	420
Net actuarial loss	107	17
Amortization of accumulated net actuarial loss	(25)	(26)
Prior service cost (benefit)		(1)
Amortization of prior service (cost) benefit	16	17
Total, before tax effect	98	7
Less: Amounts attributed to joint venture partners		(1)
Net amount recognized, before tax effect	98	8
Other Postretirement Benefits [Member] \| Change in Benefit Obligation [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation at beginning of year	2,844	2,902
Service cost	14	17
Interest cost	132	159
Amendments		(1)
Actuarial losses	107	17
Benefits paid	(256)	(275)
Medicare Part D subsidy receipts	21	25
Foreign currency translation impact	1
Benefit obligation at end of year	2,863	2,844	2,902
Other Postretirement Benefits [Member] \| Change in Plan Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefits paid	(8)	(52)
Fair value of plan assets at beginning of year	$ 8	58
Actual return on plan assets		2
Fair value of plan assets at end of year		$ 8	$ 58

Pension and Other Postretirement Benefits - Schedule of Obligations and Funded Status (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Domestic Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Funded status	$ (3,084)	$ (2,714)

Pension and Other Postretirement Benefits - Schedule of Pension Plan Benefit Obligations (Detail) - Pension Benefits [Member] - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Defined benefit pension plans, Projected benefit obligation	$ 14,751	$ 13,526
Accumulated benefit obligation	14,186	13,025
Plan assets, Projected benefit obligation	13,973	12,828
Fair value of plan assets	10,142	9,470
Plan assets, Accumulated benefit obligation	13,421	12,184
Fair value of plan assets	$ 10,123	$ 9,281

- Definition

1) For defined benefit pension plans, the benefit obligation is the projected benefit obligation, which is the actuarial present value as of a date of all benefits attributed by the pension benefit formula to employee service rendered prior to that date. 2) For other postretirement defined benefit plans, the benefit obligation is the accumulated postretirement benefit obligation, which is the actuarial present value of benefits attributed to employee service rendered to a particular date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Projected Benefit Obligation
-URI http://asc.fasb.org/extlink&oid=6522206

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accumulated Postretirement Benefit Obligation
-URI http://asc.fasb.org/extlink&oid=6503904

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 6
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph E1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	$ 288	$ 190	$ 155
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	186	165	148
Interest cost	639	678	682
Expected return on plan assets	(808)	(806)	(787)
Recognized net actuarial loss	384	247	181
Amortization of prior service cost (benefit)	19	19	17
Settlements		2	2
Curtailments		(9)	(10)
Net periodic benefit cost	420	296	233
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	14	17	20
Interest cost	131	158	174
Expected return on plan assets		(2)	(7)
Recognized net actuarial loss	25	26	33
Amortization of prior service cost (benefit)	(16)	(17)	(15)
Settlements			(3)
Net periodic benefit cost	$ 154	$ 182	$ 202

Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	$ 288	$ 190	$ 155
Reduction in net periodic benefit cost for post retirement benefit due to drug benefit	$ 64	$ 43	$ 39

Pension and Other Postretirement Benefits - Schedule of Amounts Expected to be Recognized in Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss recognition	$ 384	$ 247	$ 181
Prior service cost (benefit) recognition	19	19	17
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss recognition	25	26	33
Prior service cost (benefit) recognition	$ (16)	$ (17)	$ (15)

Pension and Other Postretirement Benefits - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations (Detail)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.15%	4.90%
Rate of compensation increase	3.50%	3.50%	3.50%

Pension and Other Postretirement Benefits - Schedule of Weighted Average Assumptions Used to Determine Net Periodic Cost (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.90%	5.75%	6.15%
Expected long-term rate of return on plan assets	8.50%	8.50%	8.75%	8.75%	9.00%
Rate of compensation increase	3.50%	3.50%	3.50%

Pension and Other Postretirement Benefits - Schedule of Assumed Health Care Cost Trend Rates (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Health care cost trend rate assumed for next year	6.00%	6.50%	6.50%
Rate to which the cost trend rate gradually declines	4.50%	5.00%	5.00%
Year that the rate reaches the rate at which it is assumed to remain	2017	2016	2015

Pension and Other Postretirement Benefits - Schedule of One-Percentage Point Change in Assumed Rates of Health Care Cost Trend Rates (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Effect on other postretirement benefit obligations, 1% increase	$ 124
Effect on total of service and interest cost components, 1% increase	5
Effect on other postretirement benefit obligations, 1% decrease	(114)
Effect on total of service and interest cost components, 1% decrease	$ (5)

Pension and Other Postretirement Benefits - Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations (Detail)	Dec. 31, 2012	Dec. 31, 2011
Equity Securities [Member] \| Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	55.00%
Equity Securities [Member] \| Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	20.00%
Fixed Income Securities [Member] \| Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	55.00%
Fixed Income Securities [Member] \| Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	25.00%
Other Investments [Member] \| Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	35.00%
Other Investments [Member] \| Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	15.00%
Plan Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	100.00%	100.00%
Plan Assets [Member] \| Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	33.00%	34.00%
Plan Assets [Member] \| Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	50.00%	50.00%
Plan Assets [Member] \| Other Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocations	17.00%	16.00%

Pension and Other Postretirement Benefits - Schedule of Fair Value of Pension and Postretirement Plans' Assets (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2011 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Net payable which represents securities purchased not yet settled less interest and dividends earned on various investments	$ 20
Level 1 [Member] \| Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Common stock related to plan contribution	$ 36

Pension and Other Postretirement Benefits - Schedule of Reconciliation of Activity for Investments (Detail) - Pension and Other Postretirement Benefit Plans' Assets [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Balance at beginning of year	$ 2,760	$ 1,499
Realized gains	52	67
Unrealized gains	142	100
Purchases	634	1,221
Sales	(538)	(124)
Issuances
Settlements
Foreign currency translation impact	8	(3)
Transfers in and (or) out of Level 3
Balance at end of year	$ 3,058	$ 2,760

Pension and Other Postretirement Benefits - Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts (Detail) $ in Millions	Dec. 31, 2012 USD ($)
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2013	$ 880
2014	870
2015	880
2016	890
2017	910
2018 through 2022	4,620
Total benefit payments	9,050
Gross Other Post-Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2013	285
2014	280
2015	280
2016	275
2017	270
2018 through 2022	1,200
Total benefit payments	2,590
Medicare Part D Subsidy Receipts [Member]
Defined Benefit Plan Disclosure [Line Items]
2013	30
2014	30
2015	30
2016	30
2017	35
2018 through 2022	170
Total benefit payments	325
Net Other Post-Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2013	255
2014	250
2015	250
2016	245
2017	235
2018 through 2022	1,030
Total benefit payments	$ 2,265

Derivatives and Other Financial Instruments - Schedule of Fair Values and Corresponding Level of Fair Value Hierarchy of Outstanding Derivative Contracts Recorded as Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	$ 596	$ 94
Level 1 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	27	57
Level 3 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	550	12
Level 2 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	45	47
Other Noncurrent Assets [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	26	22
Derivatives Designated as Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	81	109
Derivatives Designated as Hedging Instruments [Member] \| Prepaid Expense and Other Current Assets [Member] \| Aluminum Contracts [Member] \| Level 1 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	23	51
Derivatives Designated as Hedging Instruments [Member] \| Prepaid Expense and Other Current Assets [Member] \| Aluminum Contracts [Member] \| Level 3 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	7	5
Derivatives Designated as Hedging Instruments [Member] \| Prepaid Expense and Other Current Assets [Member] \| Interest Rate Contracts [Member] \| Level 2 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	8	8
Derivatives Designated as Hedging Instruments [Member] \| Other Noncurrent Assets [Member] \| Aluminum Contracts [Member] \| Level 1 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	3	6
Derivatives Designated as Hedging Instruments [Member] \| Other Noncurrent Assets [Member] \| Interest Rate Contracts [Member] \| Level 2 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	37	37
Derivatives Designated as Hedging Instruments [Member] \| Other Noncurrent Assets [Member] \| Energy Contracts [Member] \| Level 3 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	3	2
Derivatives Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	541	7
Derivatives Not Designated as Hedging Instrument [Member] \| Prepaid Expense and Other Current Assets [Member] \| Aluminum Contracts [Member] \| Level 3 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	211
Derivatives Not Designated as Hedging Instrument [Member] \| Prepaid Expense and Other Current Assets [Member] \| Aluminum Contracts [Member] \| Level 2 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives		1
Derivatives Not Designated as Hedging Instrument [Member] \| Other Noncurrent Assets [Member] \| Aluminum Contracts [Member] \| Level 3 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	329	5
Derivatives Not Designated as Hedging Instrument [Member] \| Other Noncurrent Assets [Member] \| Foreign Exchange Contracts [Member] \| Level 1 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	1	1
Margin Held [Member] \| Prepaid Expense and Other Current Assets [Member] \| Aluminum Contracts [Member] \| Level 1 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	9	7
Margin Held [Member] \| Prepaid Expense and Other Current Assets [Member] \| Interest Rate Contracts [Member] \| Level 2 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	8	8
Margin Held [Member] \| Other Noncurrent Assets [Member] \| Interest Rate Contracts [Member] \| Level 2 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset derivatives	$ 9	$ 7

Derivatives and Other Financial Instruments - Schedule of Fair Values and Corresponding Level of Fair Value Hierarchy of Outstanding Derivative Contracts Recorded as Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Derivative [Line Items]
Fair value liability derivatives	$ 679	$ 737
Level 1 [Member]
Derivative [Line Items]
Fair value liability derivatives	15	64
Level 3 [Member]
Derivative [Line Items]
Fair value liability derivatives	638	630
Level 2 [Member]
Derivative [Line Items]
Fair value liability derivatives	26	44
Derivatives Designated as Hedging Instruments [Member]
Derivative [Line Items]
Fair value liability derivatives	622	653
Derivatives Designated as Hedging Instruments [Member] \| Other Current Liabilities [Member] \| Aluminum Contracts [Member] \| Level 1 [Member]
Derivative [Line Items]
Fair value liability derivatives	13	47
Derivatives Designated as Hedging Instruments [Member] \| Other Current Liabilities [Member] \| Aluminum Contracts [Member] \| Level 3 [Member]
Derivative [Line Items]
Fair value liability derivatives	35	32
Derivatives Designated as Hedging Instruments [Member] \| Other Noncurrent Liabilities and Deferred Credits [Member] \| Aluminum Contracts [Member] \| Level 1 [Member]
Derivative [Line Items]
Fair value liability derivatives	1	4
Derivatives Designated as Hedging Instruments [Member] \| Other Noncurrent Liabilities and Deferred Credits [Member] \| Aluminum Contracts [Member] \| Level 3 [Member]
Derivative [Line Items]
Fair value liability derivatives	573	570
Derivatives Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Fair value liability derivatives	57	85
Derivatives Not Designated as Hedging Instrument [Member] \| Other Current Liabilities [Member] \| Aluminum Contracts [Member] \| Level 1 [Member]
Derivative [Line Items]
Fair value liability derivatives	1	12
Derivatives Not Designated as Hedging Instrument [Member] \| Other Current Liabilities [Member] \| Aluminum Contracts [Member] \| Level 2 [Member]
Derivative [Line Items]
Fair value liability derivatives	21	23
Derivatives Not Designated as Hedging Instrument [Member] \| Other Current Liabilities [Member] \| Embedded Credit Derivative [Member] \| Level 3 [Member]
Derivative [Line Items]
Fair value liability derivatives	3
Derivatives Not Designated as Hedging Instrument [Member] \| Other Noncurrent Liabilities and Deferred Credits [Member] \| Aluminum Contracts [Member] \| Level 1 [Member]
Derivative [Line Items]
Fair value liability derivatives		1
Derivatives Not Designated as Hedging Instrument [Member] \| Other Noncurrent Liabilities and Deferred Credits [Member] \| Aluminum Contracts [Member] \| Level 2 [Member]
Derivative [Line Items]
Fair value liability derivatives	5	21
Derivatives Not Designated as Hedging Instrument [Member] \| Other Noncurrent Liabilities and Deferred Credits [Member] \| Embedded Credit Derivative [Member] \| Level 3 [Member]
Derivative [Line Items]
Fair value liability derivatives	$ 27	28
Less Margin Posted [Member] \| Other Current Liabilities [Member] \| Aluminum Contracts [Member] \| Level 1 [Member]
Derivative [Line Items]
Fair value liability derivatives		$ 1

Derivatives and Other Financial Instruments - Schedule of Net Fair Values of Outstanding Derivative Contracts and Effect of Hypothetical Change (Increase or Decrease of 10%) in Market Prices or Rates (Detail) $ in Millions	Dec. 31, 2012 USD ($)
Aluminum Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset/(liability)	$ (85)
Index change of + / - 10%	111
Embedded Credit Derivative [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset/(liability)	(30)
Index change of + / - 10%	3
Energy Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset/(liability)	3
Index change of + / - 10%	249
Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset/(liability)	1
Index change of + / - 10%	8
Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value asset/(liability)	28
Index change of + / - 10%	$ 1

Derivatives and Other Financial Instruments - Schedule of Derivative Contract Assets and Liabilities that are Measured and Recognized at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value asset derivatives	$ 596	$ 94
Fair value liability derivatives	679	737
Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value asset derivatives	27	57
Fair value liability derivatives	15	64
Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value asset derivatives	45	47
Fair value liability derivatives	26	44
Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value asset derivatives	550	12
Fair value liability derivatives	638	630
Margin Held [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Margin held	$ (26)	(22)
Less Margin Posted [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Margin posted		$ (1)

Derivatives and Other Financial Instruments - Schedule of Reconciliation of Activity for Derivative Contracts (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Aluminum Contracts [Member] \| Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of year	$ 10
Sales	(8)
Cost of goods sold	(107)
Other income, net	16
Other comprehensive loss	10	$ 5
Purchases, sales, issuances, and settlements	596	5
Transfers into and (or) out of Level 3
Foreign currency translation	30
Balance at end of year	547	10
Sales
Cost of goods sold
Other income, net	16
Aluminum Contracts [Member] \| Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of year	602	702
Sales	(33)	(63)
Other comprehensive loss	39	(37)
Transfers into and (or) out of Level 3
Balance at end of year	608	602
Sales
Cost of goods sold
Energy Contracts [Member] \| Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of year	2	9
Other comprehensive loss	1	(7)
Transfers into and (or) out of Level 3
Balance at end of year	3	2
Sales
Cost of goods sold
Energy Contracts [Member] \| Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of year		62
Cost of goods sold		(14)
Other income, net		(48)
Transfers into and (or) out of Level 3
Sales
Cost of goods sold
Embedded Credit Derivative [Member] \| Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of year	28	24
Cost of goods sold	(1)	(1)
Other income, net	3	5
Transfers into and (or) out of Level 3
Balance at end of year	30	28
Sales
Cost of goods sold
Other income, net	$ 3	$ 5

Derivatives and Other Financial Instruments - Additional Information (Detail) $ in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Jul. 30, 2012 Contract	Dec. 31, 2012 USD ($) Kmt yr	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Jan. 31, 2012 USD ($)	Dec. 31, 2011 CAD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other derivative contracts estimated term of quoted market prices, in years \| yr		10
Number of contracts \| Contract	2
Derivative asset amount		$ 596
Amount of aluminum kmt designated as fair value hedges \| Kmt		386
Face amount of debt the hedges effectively convert from fixed to floating through 2018		$ 200
Notional amount interest rate swaps		$ 550	$ 550	$ 825	$ 315
Gain on termination of interest rate swaps			33	$ 28
Notes interest rate		4.75%			6.00%
Contracts expiration date		September 2011
Forward contract to purchase to mitigate the foreign currency risk related to a Canadian-denominated loan due in 2014		$ 58				$ 58
Power contracts one [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Power contracts maturity date	Dec. 31, 2014
Power contracts two [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Power contracts maturity date	Dec. 31, 2016
6% Notes, due 2012 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes interest rate		6.00%			6.00%
Notes maturity date		2012
Six Year Natural Gas Supply Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net unrealized loss on derivative contracts		$ 5
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net unrealized loss on derivative contracts		88	618
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value hierarchy for public debt		(422)
Long-term debt, fair value		8,456	8,576
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value hierarchy for non-public debt		(43)
Long-term debt, fair value		$ 572	$ 698

Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Detail)	12 Months Ended
	Dec. 31, 2012 USD ($) Index $ / Mg
Interrelationship of Future Aluminum and Oil Prices [Member] \| Aluminum Contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative Assets, Fair Value	$ 2,000,000
Interrelationship of Future Aluminum and Oil Prices [Member] \| Aluminum Contracts [Member] \| Minimum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected future aluminum prices \| $ / Mg	2,037
Maturity year of future aluminum price	2013
Expected future oil prices \| $ / Mg	90
Interrelationship of Future Aluminum and Oil Prices [Member] \| Aluminum Contracts [Member] \| Maximum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected future aluminum prices \| $ / Mg	2,542
Maturity year of future aluminum price	2018
Expected future oil prices \| $ / Mg	111
Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] \| Aluminum Contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative Assets, Fair Value	$ 537,000,000
Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] \| Aluminum Contracts [Member] \| Minimum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected future aluminum prices \| $ / Mg	2,046
Maturity year of future aluminum price	2013
Foreign currency exchange rate	1
Foreign currency exchange rate	1.03
Foreign currency exchange rate expected year	2013
Expected Consumer price index, Year	2013
Expected Consumer price index \| Index	232
Interrelationship of Future Aluminum Prices, Foreign Currency Exchange Rates, and U.S. Consumer Price Index [Member] \| Aluminum Contracts [Member] \| Maximum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected future aluminum prices \| $ / Mg	2,421
Price of aluminum beyond forward curve	$ 2,016
Foreign currency exchange rate	0.93
Expected Consumer price index, Year	2016
Consumer price index base year	1982
Consumer price index base \| Index	100
Expected Consumer price index \| Index	254
Price of Electricity Beyond Forward Curve [Member] \| Energy Contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative Assets, Fair Value	$ 3,000,000
Price of Electricity Beyond Forward Curve [Member] \| Energy Contracts [Member] \| Minimum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Expected Consumer price index, Year	2013
Price of electricity beyond forward curve	$ 78
Price of Electricity Beyond Forward Curve [Member] \| Energy Contracts [Member] \| Maximum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Price of electricity beyond forward curve	$ 170
Maturity date of electricity beyond forward curve	2036
Price of Aluminum Beyond Forward Curve [Member] \| Aluminum Contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative Liabilities, Fair Value	$ 600,000,000
Price of Aluminum Beyond Forward Curve [Member] \| Aluminum Contracts [Member] \| Minimum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Maturity year of future aluminum price	2023
Price of aluminum beyond forward curve	$ 2,790
Price of Aluminum Beyond Forward Curve [Member] \| Aluminum Contracts [Member] \| Maximum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Maturity year of future aluminum price	2027
Price of aluminum beyond forward curve	$ 3,002
Credit Spread Between Alcoa and Counterparty [Member] \| Embedded Credit Derivative [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative Liabilities, Fair Value	$ 30,000,000
Credit Spread Between Alcoa and Counterparty [Member] \| Embedded Credit Derivative [Member] \| Minimum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Percentage of credit spread	1.63%
Credit Spread Between Alcoa and Counterparty [Member] \| Embedded Credit Derivative [Member] \| Maximum [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Percentage of credit spread	1.91%
Credit Spread Between Alcoa and Counterparty [Member] \| Embedded Credit Derivative [Member] \| Median [Member] \| Discounted Cash Flow [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Percentage of credit spread	1.77%

Derivatives and Other Financial Instruments - Schedule of Quantitative Information for Level 3 Derivative Contracts (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($)
Aluminum Contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Decrease in Fair value of assets and liabilities	$ 8

Derivatives and Other Financial Instruments - Schedule of Gain or Loss on Hedged Items and Derivative Contracts (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Hedged Items	$ 1	$ (62)	$ 128
Amount of Gain or (Loss) Recognized in Earnings on Hedged Items	(19)	102	(103)
Aluminum Contracts [Member] \| Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Hedged Items	(9)	(126)	38
Amount of Gain or (Loss) Recognized in Earnings on Hedged Items	(9)	133	(41)
Interest Rate Contracts [Member] \| Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Hedged Items	10	64	90
Amount of Gain or (Loss) Recognized in Earnings on Hedged Items	$ (10)	$ (31)	$ (62)

- Definition

The amount of net gains and losses recognized in income during the period on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges, on derivative instruments designated and qualifying as hedging instruments in cash flow hedges, and on derivative instruments not designated as hedging instruments.

+ References + Details

Derivatives and Other Financial Instruments - Schedule of Gain or Loss on Hedged Items and Derivative Contracts (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain or (loss) recognized in earnings related to ineffective portion of hedging relationships		$ (1)	$ 1
Aluminum Contracts [Member] \| Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain or (loss) recognized in earnings related to ineffective portion of hedging relationships	$ (18)	$ 7	$ (3)

Derivatives and Other Financial Instruments - Schedule of Gains and Losses on Derivative Excluded from Assessment of Effectiveness Recognized in Current Earnings (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	$ (1)	$ 2
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)	34	(121)	$ (138)
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	(12)	63	(21)
Aluminum Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	(10)	72	(6)
Aluminum Contracts [Member] \| Other (Income) Expenses, Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	(1)	2
Aluminum Contracts [Member] \| Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)	36	(114)	(106)
Energy Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)		(3)	(10)
Energy Contracts [Member] \| Cost of Goods Sold [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)		(8)	(25)
Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)		1	(3)
Foreign Exchange Contracts [Member] \| Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)		4	(6)
Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)		(2)	(1)
Interest Rate Contracts [Member] \| Other (Income) Expenses, Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)		(3)
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	(2)	$ (5)	(1)
Interest Rate Contracts [Member] \| Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)	$ (2)		$ (1)

Derivatives and Other Financial Instruments - Schedule of Gains and Losses on Derivative Excluded from Assessment of Effectiveness Recognized in Current Earnings (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Derivative Instruments, Gain (Loss) [Line Items]
Amount of loss expected to be recognized into earnings over the next 12 months	$ 23
Amount of gain or (loss) recognized in earnings related amount excluded from the assessment of hedge effectiveness	$ (1)	$ 3
Earnings recognized in relation to ineffective portion of the hedging relationship		$ (1)	$ 1

Derivatives and Other Financial Instruments - Schedule of Outstanding Forward Contracts that were Entered into Hedge Forecasted Transactions (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($) Mg MWh BTU	Dec. 31, 2011 Mg MWh
Energy Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Electricity (megawatt hours) \| MWh	100,578,295	100,578,295
Natural gas (million British thermal units) \| BTU	19,160,000
Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange contracts \| $	$ 71
Aluminum Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Aluminum contracts (kmt) \| Mg	1,120	1,294

Derivatives and Other Financial Instruments - Schedule of Fair Value Gains and Losses on Derivatives Contracts Recorded in Earnings (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Derivatives	$ 13	$ 39	$ (32)
Sales [Member] \| Aluminum Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Derivatives		(13)	5
Other (Income) Expenses, Net [Member] \| Aluminum Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Derivatives	16	13	(18)
Other (Income) Expenses, Net [Member] \| Embedded Credit Derivative [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Derivatives	$ (3)	(5)	(2)
Other (Income) Expenses, Net [Member] \| Energy Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Derivatives		47	(23)
Other (Income) Expenses, Net [Member] \| Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Earnings on Derivatives		$ (3)	$ 6

Derivatives and Other Financial Instruments - Schedule of Carrying Values and Fair Values of Other Financial Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Cash and Cash Equivalents [Member]
Derivative [Line Items]
Carrying value	$ 1,861	$ 1,939
Fair value	1,861	1,939
Restricted Cash [Member]
Derivative [Line Items]
Carrying value	189	25
Fair value	189	25
Noncurrent Receivables [Member]
Derivative [Line Items]
Carrying value	20	30
Fair value	20	30
Available-for-sale securities [Member]
Derivative [Line Items]
Carrying value	67	92
Fair value	67	92
Short-term Debt [Member]
Derivative [Line Items]
Carrying value	53	62
Fair value	53	62
Commercial Paper [Member]
Derivative [Line Items]
Carrying value		224
Fair value		224
Long-Term Debt Due Within One Year [Member]
Derivative [Line Items]
Carrying value	465	445
Fair value	465	445
Long-Term Debt, Less Amount Due Within One Year [Member]
Derivative [Line Items]
Carrying value	8,311	8,640
Fair value	$ 9,028	$ 9,274

Quarterly Data - Schedule of Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule Of Quarterly Financial Information [Line Items]
Sales	$ 5,898	$ 5,833	$ 5,963	$ 6,006	$ 5,989	$ 6,419	$ 6,585	$ 5,958	$ 23,700	$ 24,951	$ 21,013
Amounts Attributable to Alcoa Common Shareholders:
Income (loss) from continuing operations	242	(143)	(2)	94	(193)	172	326	309	191	614	262
(Loss) income from discontinued operations					2		(4)	(1)		(3)	(8)
Net income (loss) Attributable to Alcoa	$ 242	$ (143)	$ (2)	$ 94	$ (191)	$ 172	$ 322	$ 308	$ 191	$ 611	$ 254
Basic:
Income (loss) from continuing operations	$ 0.23	$ (0.13)		$ 0.09	$ (0.18)	$ 0.16	$ 0.31	$ 0.29	$ 0.18	$ 0.58	$ 0.25
(Loss) income from discontinued operations							(0.01)			(0.01)
Net income (loss)	0.23	(0.13)		0.09	(0.18)	0.16	0.30	0.29	0.18	0.57	0.25
Diluted:
Income (loss) from continuing operations	0.21	(0.13)		0.09	(0.18)	0.15	0.28	0.27	0.18	0.55	0.25
(Loss) income from discontinued operations											(0.01)
Net income (loss)	$ 0.21	$ (0.13)		$ 0.09	$ (0.18)	$ 0.15	$ 0.28	$ 0.27	$ 0.18	$ 0.55	$ 0.24

Label	Element	Value
Domestic Pension Plans Of Foreign Entity Defined Benefit [Member]
Defined Benefit Plan Fair Value Of Plan Assets	us-gaap_DefinedBenefitPlanFairValueOfPlanAssets	$ 7,988,000,000
Defined Benefit Plan Fair Value Of Plan Assets	us-gaap_DefinedBenefitPlanFairValueOfPlanAssets	8,437,000,000
Defined Benefit Plan Benefit Obligation	us-gaap_DefinedBenefitPlanBenefitObligation	10,702,000,000
Defined Benefit Plan Benefit Obligation	us-gaap_DefinedBenefitPlanBenefitObligation	$ 11,521,000,000

Assets, usually stocks, bonds, and other investments, that have been segregated and restricted (usually in a trust) to provide benefits, at their fair value as of the measurement date. Plan assets include amounts contributed by the employer (and by employees for a contributory plan) and amounts earned from investing the contributions, less benefits paid. If a plan has liabilities other than for benefits, those non-benefit obligations may be considered as reductions of plan assets.

+ References + Details

Pension and Other Postretirement Benefits - Schedule of Fair Value of Pension and Postretirement Plans' Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	$ 11,043	$ 10,339
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	3,635	3,490
Equity Securities [Member] \| Equity Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	2,329	2,217
Equity Securities [Member] \| Hedge Funds, Equity Long (Short) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	756	731
Equity Securities [Member] \| Private Equity Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	550	542
Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	5,580	5,314
Fixed Income Securities [Member] \| Intermediate and Long Duration Government Credit [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	5,073	4,974
Fixed Income Securities [Member] \| Other Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	507	340
Other Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	1,828	1,535
Other Investments [Member] \| Other Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	459	321
Other Investments [Member] \| Real Estate Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	573	546
Other Investments [Member] \| Hedge Funds, Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	796	668
Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	2,510	2,422
Level 1 [Member] \| Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	1,016	904
Level 1 [Member] \| Equity Securities [Member] \| Equity Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	1,016	904
Level 1 [Member] \| Equity Securities [Member] \| Hedge Funds, Equity Long (Short) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets
Level 1 [Member] \| Equity Securities [Member] \| Private Equity Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets
Level 1 [Member] \| Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	1,169	1,223
Level 1 [Member] \| Fixed Income Securities [Member] \| Intermediate and Long Duration Government Credit [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	1,169	1,223
Level 1 [Member] \| Fixed Income Securities [Member] \| Other Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets
Level 1 [Member] \| Other Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	325	295
Level 1 [Member] \| Other Investments [Member] \| Other Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	212	198
Level 1 [Member] \| Other Investments [Member] \| Real Estate Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	113	97
Level 1 [Member] \| Other Investments [Member] \| Hedge Funds, Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets
Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	5,475	5,157
Level 2 [Member] \| Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	1,196	1,203
Level 2 [Member] \| Equity Securities [Member] \| Equity Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	1,196	1,203
Level 2 [Member] \| Equity Securities [Member] \| Hedge Funds, Equity Long (Short) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets
Level 2 [Member] \| Equity Securities [Member] \| Private Equity Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets
Level 2 [Member] \| Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	4,196	3,880
Level 2 [Member] \| Fixed Income Securities [Member] \| Intermediate and Long Duration Government Credit [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	3,689	3,540
Level 2 [Member] \| Fixed Income Securities [Member] \| Other Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	507	340
Level 2 [Member] \| Other Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	83	74
Level 2 [Member] \| Other Investments [Member] \| Other Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets
Level 2 [Member] \| Other Investments [Member] \| Real Estate Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	83	74
Level 2 [Member] \| Other Investments [Member] \| Hedge Funds, Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets
Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	3,058	2,760
Level 3 [Member] \| Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	1,423	1,383
Level 3 [Member] \| Equity Securities [Member] \| Equity Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	117	110
Level 3 [Member] \| Equity Securities [Member] \| Hedge Funds, Equity Long (Short) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	756	731
Level 3 [Member] \| Equity Securities [Member] \| Private Equity Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	550	542
Level 3 [Member] \| Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	215	211
Level 3 [Member] \| Fixed Income Securities [Member] \| Intermediate and Long Duration Government Credit [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	215	211
Level 3 [Member] \| Fixed Income Securities [Member] \| Other Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets
Level 3 [Member] \| Other Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	1,420	1,166
Level 3 [Member] \| Other Investments [Member] \| Other Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	247	123
Level 3 [Member] \| Other Investments [Member] \| Real Estate Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	377	375
Level 3 [Member] \| Other Investments [Member] \| Hedge Funds, Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension and other postretirement plans' assets	$ 796	$ 668