Alcoa 2012 Annual Report Download - page 109

The major classes of assets and liabilities of operations held for sale were as follows:
December 31, 2012 2011
Assets:
Properties, plants, and equipment $2 $136
Goodwill - 94
Other assets - 13
Assets held for sale* $2 $243
Liabilities:
Accounts payable, trade $ - $ 1
Accrued expenses 15
Liabilities of operations held for sale* $1 $ 6
* Assets held for sale were included in Other noncurrent assets and Liabilities of operations held for sale were
included in Other noncurrent liabilities and deferred credits on the accompanying Consolidated Balance Sheet.
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.
In addition to AROs, certain CAROs related to alumina refineries, aluminum smelters, and fabrication facilities have
not been recorded in the Consolidated Financial Statements due to uncertainties surrounding the ultimate settlement
date. Such uncertainties exist as a result of the perpetual nature of the structures, maintenance and upgrade programs,
and other factors. At the date a reasonable estimate of the ultimate settlement date can be made (e.g., planned
demolition), Alcoa would record an ARO for the removal, treatment, transportation, storage, and (or) disposal of
various regulated assets and hazardous materials such as asbestos, underground and aboveground storage tanks, PCBs,
various process residuals, solid wastes, electronic equipment waste, and various other materials. If Alcoa was required
to demolish all such structures immediately, the estimated CARO as of December 31, 2012 ranges from less than $1 to
$52 per structure (132 structures) in today’s dollars.
The following table details the carrying value of recorded AROs by major category (of which $75 and $76 was
classified as a current liability as of December 31, 2012 and 2011, respectively):
December 31, 2012 2011
Spent pot lining disposal $182 $187
Closure of bauxite residue areas 190 173
Mine reclamation 189 164
Demolition* 28 34
Landfill closure 17 17
Other 44
$610 $579
* In 2011, AROs were recorded as a result of management’s decision to permanently shut down and demolish certain
structures, each of which was previously temporarily idled for different reasons (see Note D).
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