Alcoa 2013 Annual Report Download - page 118

(2) These amounts were included in Provision for income taxes on the accompanying Statement of Consolidated
Operations.
(3) In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to
earnings.
(4) In all periods presented, unrealized and realized gains and losses related to these securities were immaterial.
Realized gains and losses were included in Other income, net on the accompanying Statement of Consolidated
Operations.
(5) These amounts were included in Sales on the accompanying Statement of Consolidated Operations.
(6) This amount was included in Cost of goods sold on the accompanying Statement of Consolidated Operations.
(7) In 2013 and 2012, this amount was included in Interest expense on the accompanying Statement of Consolidated
Operations. In 2011, this amount was included in Other income, net on the accompanying Statement of
Consolidated Operations.
(8) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding
benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in
the line items indicated in footnotes 1 through 7.
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, 2013 ranges from less than $1 to
$52 per structure (131 structures) in today’s dollars.
The following table details the carrying value of recorded AROs by major category (of which $85 and $75 was
classified as a current liability as of December 31, 2013 and 2012, respectively):
December 31, 2013 2012
Spent pot lining disposal $182 $182
Closure of bauxite residue areas 179 190
Mine reclamation 178 189
Demolition* 68 28
Landfill closure 18 17
Other 44
$629 $610
* In 2013, AROs were recorded as a result of management’s decision to permanently shut down and demolish certain
structures (see Note D).
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