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Restructuring and Other Charges | 6 Months Ended
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Jun. 30, 2017
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | D. Restructuring and Other Charges In the second quarter of 2017, Arconic recorded Restructuring and other charges of $26 ($17 after-tax), which included $29 ($19 after-tax) for layoff costs related to cost reduction initiatives including the separation of approximately 352 employees (129 in the Engineered Products and Solutions segment, 110 in the Global Rolled Products segment, 93 in the Transportation and Construction Solutions segment, and 20 in Corporate); a net charge of $4 ($3 after-tax) for other miscellaneous items; a net benefit of $6 ($4 after-tax), for the reversal of forfeited executive stock compensation of $13, partially offset by a charge of $7 for the related severance; and a favorable benefit of $1 ($1 after-tax) for the reversal of a number of small layoff reserves related to prior periods. In the first six months of 2017, Arconic recorded Restructuring and other charges of $99 ($86 after-tax), which included $48 ($32 after-tax) for layoff costs related to cost reduction initiatives including the separation of approximately 680 employees (243 in the Engineered Products and Solutions segment, 242 in the Global Rolled Products segment, 133 in the Transportation and Construction Solutions segment, and 62 in Corporate); a charge of $60 ($60 after-tax) related to the sale of the Fusina, Italy rolling mill; a net benefit of $6 ($4 after-tax), for the reversal of forfeited executive stock compensation of $13, partially offset by a charge of $7 for the related severance; a net benefit of $1 ($0 after-tax) for other miscellaneous items; and a favorable benefit of $2 ($2 after-tax) for the reversal of a number of small layoff reserves related to prior periods. In the second quarter of 2016, Arconic recorded Restructuring and other charges of $14 ($9 after-tax), which included $13 ($8 after-tax) for layoff costs related to cost reduction initiatives and the separation of Alcoa Inc. (see Note G), including the separation of approximately 540 employees (300 in the Engineered Products and Solutions segment and 240 in the Transportation and Construction Solutions segment); a net charge of $7 ($4 after-tax) for other miscellaneous items; and a favorable benefit of $6 ($3 after-tax) for the reversal of a number of small layoff reserves related to prior periods. In the first six months of 2016, Arconic recorded Restructuring and other charges of $30 ($20 after-tax), which included $30 ($19 after-tax) for layoff costs related to cost reduction initiatives and the separation of Alcoa Inc. (see Note G), including the separation of approximately 1,070 employees (800 in the Engineered Products and Solutions segment, 30 in the Global Rolled Products segment, and 240 in the Transportation and Construction Solutions segment); a net charge of $7 ($4 after-tax) for other miscellaneous items; and a net favorable benefit of $7 ($3 after-tax) for the reversal of a number of small layoff reserves related to prior periods. Arconic does not include Restructuring and other charges in the results of its reportable segments. The pretax impact of allocating such charges to segment results would have been as follows:
|  | Second quarter ended June 30, |  |  | Six months ended June 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Engineered Products and Solutions |  | $ | 8 |  |  | $ | 9 |  |  | $ | 14 |  |  | $ | 17 |
Global Rolled Products |  |  | 17 |  |  |  | — |  |  |  | 74 |  |  |  | 2 |
Transportation and Construction Solutions |  |  | 6 |  |  |  | 8 |  |  |  | 9 |  |  |  | 8 |
Segment Total |  |  | 31 |  |  |  | 17 |  |  |  | 97 |  |  |  | 27 |
Corporate |  |  | (5 | ) |  |  | (3 | ) |  |  | 2 |  |  |  | 3 |
Total Restructuring and other charges |  | $ | 26 |  |  | $ | 14 |  |  | $ | 99 |  |  | $ | 30 |
As of June 30, 2017, approximately 65 of the 680 employees associated with 2017 restructuring programs, approximately 1,170 of the 1,770 employees (previously 1,800) associated with 2016 restructuring programs, and approximately 1,120 of the 1,220 employees (previously 1,240) associated with the 2015 restructuring programs were separated. The total number of employees associated with both the 2016 and 2015 restructuring programs was updated to reflect employees who, initially identified for separation, accepted other positions within Arconic, as well as natural attrition. Most of the remaining separations for the 2017 restructuring programs and all of the remaining separations for the 2016 and 2015 restructuring programs are expected to be completed by the end of 2017. In the 2017 second quarter and six-month period, cash payments of $1 and $2, respectively, were made against layoff reserves related to 2017 restructuring programs, cash payments of $6 and $20, respectively, were made against layoff reserves related to 2016 restructuring programs, and cash payments of $1 and $4, respectively, were made against the layoff reserves related to 2015 restructuring programs. Activity and reserve balances for restructuring charges were as follows:
|  | Layoff costs |  |  | Other exit costs |  |  | Total |
Reserve balances at December 31, 2015 |  | $ | 84 |  |  | $ | 9 |  |  | $ | 93 |
2016: |  |  |  |  |  |  |  |  |  |  |  |
Cash payments |  |  | (73 | ) |  |  | (13 | ) |  |  | (86 | )
Restructuring charges |  |  | 70 |  |  |  | 27 |  |  |  | 97 |
Other* |  |  | (31 | ) |  |  | (14 | ) |  |  | (45 | )
Reserve balances at December 31, 2016 |  |  | 50 |  |  |  | 9 |  |  |  | 59 |
2017: |  |  |  |  |  |  |  |  |  |  |  |
Cash payments |  |  | (26 | ) |  |  | (5 | ) |  |  | (31 | )
Restructuring charges |  |  | 43 |  |  |  | — |  |  |  | 43 |
Other* |  |  | 10 |  |  |  | (1 | ) |  |  | 9 |
Reserve balances at June 30, 2017 |  | $ | 77 |  |  | $ | 3 |  |  | $ | 80 |
* | Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In 2017, Other for layoff costs includes the reclassification of a stock awards reversal of $13. In 2016, Other for other exit costs also included reclassifications of $8 in asset retirement, $2 in environmental obligations and $4 in legal obligations as these liabilities were included in Arconic’s separate reserves for asset retirement obligations, environmental remediation and legal costs.
The remaining reserves are expected to be paid in cash during the remainder of 2017, except for approximately $10 to $12, which is expected to be paid within the next year for layoffs.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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