Alcoa 2011 Annual Report Download - page 121

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L. Other Noncurrent Liabilities and Deferred Credits
December 31, 2011 2010
Fair value of derivative contracts (X) $ 624 $ 703
Asset retirement obligations (C) 503 442
Deferred income taxes (T) 395 388
Accrued compensation and retirement costs 304 314
Environmental remediation (N) 289 302
Deferred alumina sales revenue 116 125
Other 197 302
$2,428 $2,576
M. Noncontrolling Interests
The following table summarizes the noncontrolling shareholders’ interests in the equity of Alcoa’s majority-owned
consolidated subsidiaries:
December 31, 2011 2010
Alcoa World Alumina and Chemicals $3,324 $3,452
Other 27 23
$3,351 $3,475
In 2011, 2010, and 2009, Alcoa received $169, $162, and $440, respectively, in contributions from the noncontrolling
shareholder (Alumina Limited) of Alcoa World Alumina and Chemicals.
N. Contingencies and Commitments
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
alleged bribes and unlawful commissions. The complaint alleges that Alcoa and the other defendants violated the
Racketeer Influenced and Corrupt Organizations Act (RICO) and committed fraud. Alba’s complaint seeks
compensatory, consequential, exemplary, and punitive damages, rescission of the 2005 alumina supply contract, and
attorneys’ fees and costs. Alba seeks treble damages with respect to its RICO claims.
On February 26, 2008, Alcoa Inc. had advised the U.S. Department of Justice (DOJ) and the Securities and Exchange
Commission (SEC) that it had recently become aware of these claims, had already begun an internal investigation, and
intended to cooperate fully in any investigation that the DOJ or the SEC may commence. On March 17, 2008, the DOJ
notified Alcoa that it had opened a formal investigation and Alcoa has been cooperating with the government.
In response to a motion filed by the DOJ on March 27, 2008, the Court ordered the suit filed by Alba to be
administratively closed and that all discovery be stayed to allow the DOJ to fully conduct an investigation without the
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