Alcoa 2010 Annual Report Download - page 157

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 a portion of Alcoa’s outstanding future funding obligations of these plans, including a
portion of the estimated minimum required funding for 2012. On January 25, 2011, the 36,518,563 shares were
registered under Alcoa’s current shelf registration statement dated March 10, 2008 for resale by the master trust, as
selling stockholder.
On April 23, 2004, St. Croix Renaissance Group, L.L.L.P., Brownfield Recovery Corp., and Energy Answers
Corporation of Puerto Rico (collectively referred to as “SCRG”) filed a suit against St. Croix Alumina L.L.C. and
Alcoa World Alumina, L.L.C. (collectively referred to as “SCA”) in the Territorial Court of the Virgin Islands,
Division of St. Croix for claims related to the sale of SCA’s former St. Croix alumina refinery to plaintiffs. SCA
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. SCA believes the verdict is, in whole or in part, not supported by the evidence or otherwise results from
errors of law committed during the trial. As a result, SCA will file motions, including for judgment notwithstanding the
verdict and, to the extent such post-trial motions are not successful, it intends to pursue its rights of appeal.
Notwithstanding the jury verdict, at this time, management is unable to reasonably predict the ultimate outcome or to
estimate a range of reasonably possible loss.
On January 28, 2011, Alcoa agreed to purchase the aerospace fastener business of TransDigm Group Inc. for
approximately $240. 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. This transaction is expected to be completed in early 2011, subject to customary regulatory reviews and approvals.
Once the acquisition is completed, this business will be reported within the Engineered Products and Solutions
segment. This acquisition is part of a strategic plan to accelerate the growth of Alcoa’s fasteners business, while adding
efficiencies, broadening the existing technology base, and expanding product offerings to better serve customers and
increase shareholder value.
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