R. Preferred and Common Stock The following reconciles segment information to consolidated totals. 2004 2003 2002 Sales: Total sales $29,335 $25,301 $23,646 Elimination of intersegment sales (5,857) (4,209) (3,712 ) Consolidated sales $23,478 $21,092 $19,934 Net income: ATOI $ 2,169 $ 1,740 $ 1,549 Intersegment profit/(loss) eliminations 52 9 (6 ) Unallocated amounts (net of tax): Interest income 26 24 31 Interest expense (176) (204) (227 ) Minority interests (245) (238) (172 ) Corporate expense (283) (287) (234 ) Restructuring and other charges 23 26 (296 ) Discontinued operations (92) (70) (132 ) Accounting changes — (47) 34 Other (164) (15) (127 ) Consolidated net income $ 1,310 $ 938 $ 420 Assets: Total segment assets $26,720 $24,707 $24,148 Elimination of intersegment receivables (565) (382) (285 ) Unallocated amounts: Cash, cash equivalents, and short-term investments 463 606 413 Deferred tax assets 1,884 1,610 1,482 Corporate goodwill 1,703 1,682 1,637 Corporate fixed assets 595 810 593 LIFO reserve (700) (558) (514 ) Assets held for sale 210 792 894 Other 2,299 2,444 1,442 Consolidated assets $32,609 $31,711 $29,810 2004 2003 2002 Revenues: U.S. $14,484 $12,843 $12,572 Australia 1,971 1,615 1,250 Spain 1,307 1,119 999 United Kingdom 830 714 735 Brazil 603 617 677 Germany 770 786 656 Other 3,513 3,398 3,045 $23,478 $21,092 $19,934 Long-lived assets:* U.S. $12,009 $12,395 $12,603 Canada 2,566 2,634 2,711 Australia 2,262 2,050 1,544 United Kingdom 869 828 732 Brazil 797 708 372 Germany 278 265 225 Other 2,358 2,061 1,896 $21,139 $20,941 $20,083 Geographic information for revenues, based on country of origin, and long-lived assets follows. *Long-lived assets include intangible assets. 56 Range of exercise price Number Weighted average remaining life Weighted average exercise price $ 0.125 0.1 employment career $0.125 $ 4.38–$12.15 0.7 1.20 10.97 $12.16–$19.93 1.9 2.43 16.56 $19.94–$27.71 16.9 5.98 22.55 $27.72–$35.49 17.2 4.52 31.71 $35.50–$45.59 52.8 4.79 38.28 Total 89.6 4.88 33.34 Options Outstanding The following tables summarize certain stock option information at December 31, 2004: (shares in millions) 2004 2003 2002 Outstanding, beginning of year: Number of options 87.8 81.6 73.5 Weighted average exercise price $32.50 $33.19 $32.02 Granted: Number of options 8.8 16.8 17.3 Weighted average exercise price $35.63 $24.93 $36.10 Exercised: Number of options (5.6) (8.0) (7.1 ) Weighted average exercise price $23.34 $23.29 $26.77 Expired or forfeited: Number of options (1.4) (2.6) (2.1 ) Weighted average exercise price $37.87 $32.58 $37.50 Outstanding, end of year: Number of options 89.6 87.8 81.6 Weighted average exercise price $33.34 $32.50 $33.19 Exercisable, end of year: Number of options 73.5 71.6 68.8 Weighted average exercise price $34.39 $34.22 $32.68 Shares reserved for future options 35.1 13.1 25.6 Date of original grant Vesting Term Reload feature 2002 and prior One 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 and forward 3years (1/3 each year) 6 years None The transactions for shares under options were: (shares in millions) Stock options under the company’s stock incentive plans have been granted, at not less than market prices on the dates of grant. Stock option features based on date of original grant are as follows: Common Stock. There are 1.8 billion shares authorized at a par value of $1 per share. As of December 31, 2004, 136.6 million shares of common stock were reserved for issuance under the long-term stock incentive plans. Preferred Stock. Alcoa has two classes of preferred stock. Serial preferred stock has 546,024 shares authorized and outstanding, with a par value of $100 per share and an annual $3.75 cumulative dividend preference per share. Class B serial preferred stock has 10 million shares authorized (none issued) andaparvalueof$1pershare.