XML 35 R17.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2017
Segment Reporting [Abstract] |
Segment Information | I. Segment Information Arconic is a producer of multi-material products including sheet, plate, precision castings, forgings, rolled rings, extrusions, wheels and fasteners. Arconic’s products are used worldwide in transportation (including aerospace, automotive, truck, trailer, rail, and shipping), packaging, building and construction, oil and gas, defense, and industrial applications. Arconic’s segments are organized by product on a worldwide basis. In the first quarter of 2017, the Company changed its primary measure of segment performance from After-tax operating income (ATOI) to Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”). Segment performance under Arconic’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is Adjusted EBITDA. Arconic’s definition of Adjusted EBITDA is net margin plus an add-back for depreciation and amortization and special items. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation and amortization. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. Items required to reconcile Combined segment adjusted EBITDA to Net income attributable to Arconic include: the Provision for depreciation and amortization; Restructuring and other charges; the impact of LIFO inventory accounting; metal price lag (the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by the respective segment - generally, when the price of metal increases, metal price lag is favorable, and when the price of metal decreases, metal price lag is unfavorable); corporate expense (general administrative and selling expenses of operating the corporate headquarters and other global administrative facilities and corporate research and development expenses); other items, including intersegment profit eliminations; Other income, net; Interest expense; Income tax expense; and the results of discontinued operations. Prior period information has been recast to conform to current year presentation. The operating results of Arconic’s reportable segments were as follows:
|  | Engineered Products and Solutions |  |  | Global Rolled Products |  |  | Transportation and Construction Solutions |  |  | Combined Segment |
Second quarter ended June 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 1,484 |  |  | $ | 1,268 |  |  | $ | 501 |  |  | $ | 3,253 |
Intersegment sales |  |  | — |  |  |  | 37 |  |  |  | — |  |  |  | 37 |
Total sales |  | $ | 1,484 |  |  | $ | 1,305 |  |  | $ | 501 |  |  | $ | 3,290 |
Profit and loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 66 |  |  |  | 51 |  |  |  | 12 |  |  |  | 129 |
Adjusted EBITDA |  |  | 310 |  |  |  | 164 |  |  |  | 82 |  |  |  | 556 |
Second quarter ended June 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 1,465 |  |  | $ | 1,316 |  |  | $ | 467 |  |  | $ | 3,248 |
Intersegment sales |  |  | — |  |  |  | 29 |  |  |  | — |  |  |  | 29 |
Total sales |  | $ | 1,465 |  |  | $ | 1,345 |  |  | $ | 467 |  |  | $ | 3,277 |
Profit and loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 62 |  |  |  | 50 |  |  |  | 12 |  |  |  | 124 |
Adjusted EBITDA |  |  | 329 |  |  |  | 163 |  |  |  | 76 |  |  |  | 568 |
|  | Engineered Products and Solutions |  |  | Global Rolled Products |  |  | Transportation and Construction Solutions |  |  | Combined Segment |
Six months ended June 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 2,969 |  |  | $ | 2,517 |  |  | $ | 950 |  |  | $ | 6,436 |
Intersegment sales |  |  | — |  |  |  | 71 |  |  |  | — |  |  |  | 71 |
Total sales |  | $ | 2,969 |  |  | $ | 2,588 |  |  | $ | 950 |  |  | $ | 6,507 |
Profit and loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 130 |  |  |  | 101 |  |  |  | 24 |  |  |  | 255 |
Adjusted EBITDA |  |  | 616 |  |  |  | 335 |  |  |  | 154 |  |  |  | 1,105 |
Six months ended June 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third-party sales |  | $ | 2,914 |  |  | $ | 2,500 |  |  | $ | 896 |  |  | $ | 6,310 |
Intersegment sales |  |  | — |  |  |  | 58 |  |  |  | — |  |  |  | 58 |
Total sales |  | $ | 2,914 |  |  | $ | 2,558 |  |  | $ | 896 |  |  | $ | 6,368 |
Profit and loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 127 |  |  |  | 100 |  |  |  | 23 |  |  |  | 250 |
Adjusted EBITDA |  |  | 634 |  |  |  | 318 |  |  |  | 140 |  |  |  | 1,092 |
The following table reconciles Combined segment adjusted EBITDA to Net income attributable to Arconic:
|  | Second quarter ended June 30, |  |  | Six months ended June 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Combined segment adjusted EBITDA |  | $ | 556 |  |  | $ | 568 |  |  | $ | 1,105 |  |  | $ | 1,092 |
Unallocated amounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | (137 | ) |  |  | (133 | ) |  |  | (270 | ) |  |  | (266 | )
Restructuring and other charges |  |  | (26 | ) |  |  | (14 | ) |  |  | (99 | ) |  |  | (30 | )
Impact of LIFO |  |  | (11 | ) |  |  | (13 | ) |  |  | (30 | ) |  |  | (25 | )
Metal price lag |  |  | 19 |  |  |  | 6 |  |  |  | 41 |  |  |  | 6 |
Corporate expense |  |  | (91 | ) |  |  | (115 | ) |  |  | (182 | ) |  |  | (191 | )
Other |  |  | (29 | ) |  |  | (16 | ) |  |  | (39 | ) |  |  | (33 | )
Operating income |  | $ | 281 |  |  | $ | 283 |  |  | $ | 526 |  |  | $ | 553 |
Other income, net |  |  | 171 |  |  |  | 17 |  |  |  | 525 |  |  |  | 29 |
Interest expense |  |  | (183 | ) |  |  | (124 | ) |  |  | (298 | ) |  |  | (245 | )
Income from continuing operations before income taxes |  | $ | 269 |  |  | $ | 176 |  |  | $ | 753 |  |  | $ | 337 |
Income taxes |  |  | (57 | ) |  |  | (123 | ) |  |  | (219 | ) |  |  | (174 | )
Discontinued operations |  |  | — |  |  |  | 82 |  |  |  | — |  |  |  | (12 | )
Net income attributable to Arconic |  | $ | 212 |  |  | $ | 135 |  |  | $ | 534 |  |  | $ | 151 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration