Alcoa Inc. (AA) | Analysis of Revenues

Revenue Recognition Accounting Policy

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.

Source: Alcoa Inc., Annual Report

Revenues as Reported

Alcoa Inc., Income Statement, Revenues

	12 months ended	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Alumina
	Primary Metals
	Flat-Rolled Products
	Engineered Products and Solutions
	Packaging and Consumer
	Corporate
	Third-party sales

Source: Alcoa Inc. Annual Reports