Alcoa 2009 Annual Report Download - page 116

Also in January 2008, Alcoa entered into a Revolving Credit Agreement (RCA-2) with LCPI, as administrative agent,
and Lehman Brothers Commercial Bank (LBCB), as lender. RCA-2 provided a $1,000 senior unsecured revolving
credit facility (RCF-2), which would have matured on January 31, 2009. In October 2008, LCPI filed for bankruptcy
protection under section 11 of the United States Bankruptcy Code. As a result, in October 2008, Alcoa gave notice in
accordance with the provisions of RCA-2 to permanently terminate in whole LBCB’s total commitments under RCF-2
effective October 30, 2008. To Alcoa’s knowledge, LBCB did not file for bankruptcy protection.
On October 14, 2008, Alcoa entered into a Revolving Credit Agreement (RCA-3) with a syndicate of lenders. RCA-3
provided a $1,150 senior unsecured revolving credit facility (RCF-3), which matured on October 12, 2009. In October
and November 2008, Alcoa increased the capacity of RCF-3 by $500 and $250, respectively, as provided for under
RCA-3. Alcoa paid a total of $43 in financing costs, which were deferred and amortized to interest expense over the
term of the facility, for the initial capacity under RCF-3 and for the $750 in increased capacity. In early 2009, Alcoa
borrowed $1,300 under RCF-3 to support its operations during the global economic downturn. The $1,300 was repaid
on March 24, 2009 with the net proceeds from the issuance of the convertible notes (see above) and common stock (see
Note R). There were no amounts outstanding under RCF-3 at December 31, 2008.
L. Other Noncurrent Liabilities and Deferred Credits
December 31, 2009 2008
Deferred alumina and aluminum sales revenue $ 132 $ 140
Environmental remediation (N) 280 277
Asset retirement obligations (C) 415 273
Fair value of derivative contracts (X) 802 360
Accrued compensation and retirement costs 308 267
Deferred income taxes (T) 376 321
Other 292 263
$2,605 $1,901
M. Noncontrolling Interests
The following table summarizes the noncontrolling shareholders’ interests in the equity of Alcoa’s majority-owned
consolidated subsidiaries:
December 31, 2009 2008
Alcoa of Australia $1,272 $ 957
Alcoa World Alumina LLC 1,801 1,450
Mosjøen Anodes ANS - 162
Other 27 28
$3,100 $2,597
In 2009 and 2008, Alcoa received $440 and $643, respectively, in contributions from the noncontrolling shareholder of
Alcoa of Australia and Alcoa World Alumina LLC. During 2007, Alcoa received $474 in contributions from
noncontrolling shareholders related to interests in Australia, Norway, Russia, and China (an additional $3 was received
in the form of a noncash contribution). In March 2009, Alcoa acquired the outstanding noncontrolling interest in
Mosjøen Anodes ANS as part of the acquisition of Elkem (see Note F).
N. Commitments and Contingencies
Litigation. On February 27, 2008, Alcoa Inc. received notice that Aluminium Bahrain B.S.C. (Alba) had filed suit
against Alcoa Inc. and Alcoa World Alumina LLC (collectively, “Alcoa”), 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 alleges that certain
Alcoa entities and their agents, including Victor Phillip Dahdaleh, have engaged in a conspiracy over a period of 15
years to defraud Alba. The complaint further alleges that Alcoa and its employees or agents (1) illegally bribed
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