Alcoa 2010 Annual Report Download - page 117

During 2009, Alumínio borrowed and repaid a total of $255 in new loans with a weighted-average interest rate of
5.25% and a weighted-average maturity of 276 days from six financial institutions. The purpose of these borrowings
was to support Alumínio’s export operations over the short-term.
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 then global economic downturn. The $1,300 was
repaid on March 24, 2009 with the net proceeds from the issuance of the convertible notes (see Public Debt above) and
common stock (see Note R).
L. Other Noncurrent Liabilities and Deferred Credits
December 31, 2010 2009
Fair value of derivative contracts (X) $ 703 $ 802
Asset retirement obligations (C) 442 415
Deferred income taxes (T) 388 376
Accrued compensation and retirement costs 314 308
Environmental remediation (N) 302 280
Deferred alumina sales revenue 125 132
Other 286 292
$2,560 $2,605
M. Noncontrolling Interests
The following table summarizes the noncontrolling shareholders’ interests in the equity of Alcoa’s majority-owned
consolidated subsidiaries:
December 31, 2010 2009
Alcoa World Alumina and Chemicals $3,452 $3,073
Other 23 27
$3,475 $3,100
In 2010, 2009, and 2008, Alcoa received $162, $440, and $643, respectively, in contributions from the noncontrolling
shareholder (Alumina Limited) of Alcoa World Alumina and Chemicals.
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
officials of the government of Bahrain and (or) officers of Alba in order to force Alba to purchase alumina at
excessively high prices, (2) illegally bribed officials of the government of Bahrain and (or) officers of Alba and issued
threats in order to pressure Alba to enter into an agreement by which Alcoa would purchase an equity interest in Alba,
and (3) assigned portions of existing supply contracts between Alcoa and Alba for the sole purpose of facilitating
109