Alcoa 2010 Annual Report Download - page 99

capital, which was not included in the divestiture transaction. In 2009, discontinued operations was comprised of a
$129 ($168 pretax) loss on the divestiture of the wire harness and electrical portion of the EES business, a $9 ($13
pretax) loss on the divestiture of the electronics portion of the EES business, and the remainder was for the operational
results of the EES business prior to the divestitures. In 2008, discontinued operations was comprised of asset
impairments of $162 ($225 pretax) to reflect the estimated fair value of the EES business and a net operating loss of
$141 ($199 pretax), which included restructuring charges of $39 ($53 pretax) for headcount reductions of
approximately 6,200 and a charge of $16 ($25 pretax) for obsolete inventory.
For both periods presented in the accompanying Consolidated Balance Sheet, the assets and liabilities of operations
classified as held for sale included the Global Foil business (one remaining plant located in Brazil), the electronics
portion of the EES business (working capital components), and the Hawesville, KY automotive casting facility. The
assets and liabilities of the Transportation Products Europe business (sold in April 2010 – see Note F) were also
classified as held for sale as of December 31, 2009.
The major classes of assets and liabilities of operations held for sale were as follows:
December 31, 2010 2009
Assets:
Receivables $28 $ 41
Inventories 22 26
Properties, plants, and equipment 35 45
Other assets 14 21
Assets held for sale $99 $133
Liabilities:
Accounts payable, trade $10 $ 25
Accrued expenses 21 35
Liabilities of operations held for sale $31 $ 60
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.
The following table details the carrying value of recorded AROs by major category (of which $92 and $38 was
classified as a current liability as of December 31, 2010 and 2009, respectively):
December 31, 2010 2009
Spent pot lining disposal $177 $196
Closure of bauxite residue areas 156 136
Mine reclamation 156 101
Landfill closure 19 17
Other 26 3
$534 $453
* In 2010, Other includes new obligations recorded as a result of management’s decision to permanently shutdown and
demolish five structures, each of which was previously temporarily idled for different reasons (see Note D).
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