XML 83 R50.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Pension and Other Postretirement Benefits (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2017
Retirement Benefits [Abstract] |
Schedule of Obligations and Funded Status | Obligations and Funded Status
| Pension benefits |  | Other postretirement benefits
December 31, | 2017 | 2016 |  | 2017 | 2016
Change in benefit obligation |  |  |  |  |
Benefit obligation at beginning of year | $ | 7,026 |  | $ | 14,247 |  |  | $ | 980 |  | $ | 2,319 |
Service cost | 90 |  | 165 |  |  | 7 |  | 13 |
Interest cost | 234 |  | 435 |  |  | 30 |  | 63 |
Amendments | 1 |  | 2 |  |  | — |  | — |
Actuarial (gains) losses | 311 |  | 770 |  |  | 1 |  | 112 |
Transfer to Alcoa Corporation | — |  | (7,577 | ) |  | — |  | (1,340 | )
Settlements | — |  | (82 | ) |  | — |  | — |
Benefits paid, net of participants’ contributions | (425 | ) | (794 | ) |  | (98 | ) | (197 | )
Medicare Part D subsidy receipts | — |  | — |  |  | 7 |  | 9 |
Foreign currency translation impact | 122 |  | (140 | ) |  | — |  | 1 |
Benefit obligation at end of year(1) | $ | 7,359 |  | $ | 7,026 |  |  | $ | 927 |  | $ | 980 |
Change in plan assets(1) |  |  |  |  |
Fair value of plan assets at beginning of year | $ | 4,666 |  | $ | 10,928 |  |  | $ | — |  | $ | — |
Actual return on plan assets | 212 |  | 89 |  |  | — |  | — |
Employer contributions | 310 |  | 296 |  |  | — |  | — |
Participants’ contributions | — |  | 16 |  |  | — |  | — |
Benefits paid | (404 | ) | (762 | ) |  | — |  | — |
Administrative expenses | (33 | ) | (65 | ) |  | — |  | — |
Transfer to Alcoa Corporation | — |  | (5,610 | ) |  | — |  | — |
Settlements | — |  | (82 | ) |  | — |  | — |
Foreign currency translation impact | 111 |  | (144 | ) |  | — |  | — |
Fair value of plan assets at end of year(1) | $ | 4,862 |  | $ | 4,666 |  |  | $ | — |  | $ | — |
Funded status* | $ | (2,497 | ) | $ | (2,360 | ) |  | $ | (927 | ) | $ | (980 | )
Less: Amounts attributed to joint venture partners | — |  | — |  |  | — |  | — |
Net funded status | $ | (2,497 | ) | $ | (2,360 | ) |  | $ | (927 | ) | $ | (980 | )
Amounts recognized in the Consolidated Balance Sheet consist of: |  |  |  |  |
Noncurrent assets | $ | 89 |  | $ | 6 |  |  | $ | — |  | $ | — |
Current liabilities | (22 | ) | (21 | ) |  | (86 | ) | (91 | )
Noncurrent liabilities | (2,564 | ) | (2,345 | ) |  | (841 | ) | (889 | )
Net amount recognized | $ | (2,497 | ) | $ | (2,360 | ) |  | $ | (927 | ) | $ | (980 | )
Amounts recognized in Accumulated Other Comprehensive Loss consist of: |  |  |  |  |
Net actuarial loss | $ | 3,240 |  | $ | 2,979 |  |  | $ | 146 |  | $ | 150 |
Prior service cost (benefit) | 10 |  | 15 |  |  | (37 | ) | (45 | )
Total, before tax effect | 3,250 |  | 2,994 |  |  | 109 |  | 105 |
Less: Amounts attributed to joint venture partners | — |  | — |  |  | — |  | — |
Net amount recognized, before tax effect | $ | 3,250 |  | $ | 2,994 |  |  | $ | 109 |  | $ | 105 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss consist of: |  |  |  |  |
Net actuarial loss (gain) | $ | 481 |  | $ | (1,992 | ) |  | $ | 1 |  | $ | (224 | )
Amortization of accumulated net actuarial loss | (220 | ) | (380 | ) |  | (5 | ) | (24 | )
Prior service (benefit) cost | — |  | (42 | ) |  | — |  | 37 |
Amortization of prior service (cost) benefit | (5 | ) | (13 | ) |  | 8 |  | 24 |
Total, before tax effect | 256 |  | (2,427 | ) |  | 4 |  | (187 | )
Less: Amounts attributed to joint venture partners | — |  | 38 |  |  | — |  | — |
Net amount recognized, before tax effect | $ | 256 |  | $ | (2,389 | ) |  | $ | 4 |  | $ | (187 | )
(1) | At December 31, 2017, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $6,018, $3,544, and $(2,474), respectively. At December 31, 2016, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $5,707, $3,495, and $(2,212), respectively.
Schedule of Pension Plan Benefit Obligations | Pension Plan Benefit Obligations
| Pension benefits
| 2017 | 2016
The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows: |  |
Projected benefit obligation | $ | 7,359 |  | $ | 7,026 |
Accumulated benefit obligation | 7,169 |  | 6,850 |
The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets was as follows: |  |
Projected benefit obligation | 6,600 |  | 6,995 |
Fair value of plan assets | 4,016 |  | 4,629 |
The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets was as follows: |  |
Accumulated benefit obligation | 6,422 |  | 6,104 |
Fair value of plan assets | 3,998 |  | 3,894 |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost
| Pension benefits(1) |  | Other postretirement benefits(2)
| 2017 | 2016 | 2015 |  | 2017 | 2016 | 2015
Service cost | $ | 90 |  | $ | 155 |  | $ | 175 |  |  | $ | 7 |  | $ | 13 |  | $ | 14 |
Interest cost | 234 |  | 431 |  | 577 |  |  | 30 |  | 63 |  | 92 |
Expected return on plan assets | (332 | ) | (677 | ) | (753 | ) |  | — |  | — |  | — |
Recognized net actuarial loss | 220 |  | 380 |  | 468 |  |  | 5 |  | 24 |  | 17 |
Amortization of prior service cost (benefit) | 5 |  | 13 |  | 16 |  |  | (8 | ) | (24 | ) | (37 | )
Settlements(3) | — |  | 19 |  | 16 |  |  | — |  | — |  | — |
Curtailments(4) | — |  | — |  | 9 |  |  | — |  | — |  | (4 | )
Special termination benefits(5) | — |  | 2 |  | 16 |  |  | — |  | — |  | — |
Net periodic benefit cost(6) | $ | 217 |  | $ | 323 |  | $ | 524 |  |  | $ | 34 |  | $ | 76 |  | $ | 82 |
Discontinued operations | — |  | 122 |  | 248 |  |  | — |  | 41 |  | 43 |
Net amount recognized in Statement of Consolidated Operations | $ | 217 |  | $ | 201 |  | $ | 276 |  |  | $ | 34 |  | $ | 35 |  | $ | 39 |
Note: | the footnotes below include components of Net Periodic Benefit Cost related to Alcoa Corporation through the completion of the Separation Transaction.
(1) | In 2017, 2016 and 2015, net periodic benefit cost for U.S. pension plans was $206, $261, and $423, respectively.
(2) | In 2017, 2016 and 2015, net periodic benefit cost for other postretirement benefits reflects a reduction of $11, $22, and $34, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D.
(3) | In 2016, settlements were due to workforce reductions (see Note D) and the payment of lump sum benefits and/or purchases of annuity contracts. In 2015, settlements were due to workforce reductions (see Note D) and the payment of lump sum benefits and/or purchases of annuity contracts.
(4) | In 2015, curtailments were due to elimination of benefits or workforce reductions (see Note D).
(5) | In 2016 and 2015, special termination benefits were due to workforce reductions (see Note D).
(6) | Amounts attributed to joint venture partners are not included.
Schedule of Amounts Expected to be Recognized in Net Periodic Benefit Cost | Amounts Expected to be Recognized in Net Periodic Benefit Cost
| Pension benefits |  | Other postretirement benefits
| 2018 |  | 2018
Net actuarial loss recognition | 168 |  |  | 9 |
Prior service cost (benefit) recognition | 3 |  |  | (8 | )
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Weighted average assumptions used to determine net periodic benefit cost for U.S. pension and other postretirement benefit plans were as follows (assumptions for non-U.S. plans did not differ materially):
| 2017 | 2016 | 2015
Discount rate to calculate service cost* | 4.20 | % | 4.29 | % | 4.00 | %
Discount rate to calculate interest cost* | 3.60 |  | 3.15 |  | 4.00 |
Expected long-term rate of return on plan assets | 7.75 |  | 7.75 |  | 7.75 |
Rate of compensation increase | 3.50 |  | 3.50 |  | 3.50 |
* | In all periods presented, the respective discount rates were used to determine net periodic benefit cost for most U.S. pension plans for the full annual period. However, the discount rates for a limited number of plans were updated during 2017, 2016, and 2015 to reflect the remeasurement of these plans due to new union labor agreements, settlements, and/or curtailments. The updated discount rates used were not significantly different from the discount rates presented.
Weighted average assumptions used to determine benefit obligations for U.S. pension and other postretirement benefit plans were as follows (assumptions for non-U.S. plans did not differ materially):
December 31, | 2017 | 2016
Discount rate | 3.75 | % | 4.20 | %
Rate of compensation increase | 3.50 |  | 3.50 |
Schedule of Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (assumptions for non-U.S. plans did not differ materially):
| 2017 | 2016 | 2015
Health care cost trend rate assumed for next year | 5.50 | % | 5.50 | % | 5.50 | %
Rate to which the cost trend rate gradually declines | 4.50 | % | 4.50 | % | 4.50 | %
Year that the rate reaches the rate at which it is assumed to remain | 2021 |  | 2020 |  | 2019 |
Schedule of One-Percentage Point Change in Assumed Rates of Health Care Cost Trend Rates | Assumed health care cost trend rates have an effect on the amounts reported for the health care plan. A one-percentage point change in these assumed rates would have the following effects:
| 1% increase | 1% decrease
Effect on other postretirement benefit obligations | $ | 29 |  | $ | (28 | )
Effect on total of service and interest cost components | 1 |  | (1 | )
Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations | Arconic’s pension plans’ investment policy and weighted average asset allocations at December 31, 2017 and 2016, by asset class, were as follows:
|  | Plan assets at December 31,
Asset class | Policy range | 2017 | 2016
Equities | 20–55% | 28 | % | 30 | %
Fixed income | 25–55% | 47 |  | 42 |
Other investments | 15–35% | 25 |  | 28 |
Total |  | 100 | % | 100 | %
The following table presents the fair value of pension plan assets classified under the appropriate level of the fair value hierarchy or net asset cost:
December 31, 2017 | Level 1 | Level 2 | Net asset value | Total
Equities: |  |
Equity securities | $ | 379 |  | $ | — |  | $ | 593 |  | $ | 972 |
Long/short equity hedge funds | — |  | — |  | 230 |  | 230 |
Private equity | — |  | — |  | 155 |  | 155 |
| $ | 379 |  | $ | — |  | $ | 978 |  | $ | 1,357 |
Fixed income: |  |
Intermediate and long duration government/credit | $ | 201 |  | $ | 981 |  | $ | 779 |  | $ | 1,961 |
Other | 164 |  | 8 |  | 145 |  | 317 |
| $ | 365 |  | $ | 989 |  | $ | 924 |  | $ | 2,278 |
Other investments: |  |
Real estate | $ | 85 |  | $ | — |  | $ | 172 |  | $ | 257 |
Discretionary and systematic macro hedge funds | — |  | — |  | 583 |  | 583 |
Other | 77 |  | 7 |  | 275 |  | 359 |
| $ | 162 |  | $ | 7 |  | $ | 1,030 |  | $ | 1,199 |
Net plan assets* | $ | 906 |  | $ | 996 |  | $ | 2,932 |  | $ | 4,834 |
December 31, 2016 | Level 1 | Level 2 | Net Asset Value | Total
Equities |  |
Equity securities | $ | 393 |  | $ | — |  | $ | 431 |  | $ | 824 |
Long/short equity hedge funds | — |  | — |  | 406 |  | 406 |
Private equity | — |  | — |  | 165 |  | 165 |
| $ | 393 |  | $ | — |  | $ | 1,002 |  | $ | 1,395 |
Fixed income: |  |  |  |
Intermediate and long duration government/credit | $ | 23 |  | $ | 95 |  | $ | 655 |  | $ | 773 |
Other | 1,060 |  | 51 |  | 74 |  | 1,185 |
| $ | 1,083 |  | $ | 146 |  | $ | 729 |  | $ | 1,958 |
Other investments: |  |
Real estate | $ | 81 |  | $ | — |  | $ | 185 |  | $ | 266 |
Discretionary and systematic macro hedge funds | — |  | — |  | 784 |  | 784 |
Other | 65 |  | — |  | 178 |  | 243 |
| $ | 146 |  | $ | — |  | $ | 1,147 |  | $ | 1,293 |
Net plan assets** | $ | 1,622 |  | $ | 146 |  | $ | 2,878 |  | $ | 4,646 |
* | As of December 31, 2017, the total fair value of pension plans’ assets excludes a net receivable of $28, which represents assets due from Alcoa Corporation as a result of plan separations and securities sold but not yet settled plus interest and dividends earned on various investments.
** | As of December 31, 2016, the total fair value of pension plans’ assets excludes a net receivable of $20, which represents assets due from Alcoa Corporation as a result of plan separations and securities sold not yet settled plus interest and dividends earned on various investments.
Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts | Benefit payments expected to be paid to pension and other postretirement benefit plans’ participants and expected Medicare Part D subsidy receipts are as follows utilizing the current assumptions outlined above:
Year ended December 31, | Pension benefits paid | Gross Other post- retirement benefits | Medicare Part D subsidy receipts | Net Other post- retirement benefits
2018 | $ | 435 |  | $ | 90 |  | $ | 5 |  | $ | 85 |
2019 | 440 |  | 90 |  | 5 |  | 85 |
2020 | 440 |  | 90 |  | 5 |  | 85 |
2021 | 445 |  | 90 |  | 5 |  | 85 |
2022 | 450 |  | 90 |  | 5 |  | 85 |
Thereafter | 2,265 |  | 335 |  | 25 |  | 310 |
| $ | 4,475 |  | $ | 785 |  | $ | 50 |  | $ | 735 |

X
- Definition Schedule of components of net periodic benefit cost table text block. + References No definition available. + Details
Name: | arnc_ScheduleOfComponentsOfNetPeriodicBenefitCostTextBlock
Namespace Prefix: | arnc_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of the major categories of plan assets of pension plans and/or other employee benefit plans. This information may include, but is not limited to, the target allocation of plan assets, the fair value of each major category of plan assets, and the level within the fair value hierarchy in which the fair value measurements fall. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(5) -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfAllocationOfPlanAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the assumptions used to determine for pension plans and/or other employee benefit plans the benefit obligation and net benefit cost, including assumed discount rates, rate increase in compensation increase, and expected long-term rates of return on plan assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (k) -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfAssumptionsUsedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the aggregate benefit obligation and aggregate fair value of plan assets for pension plans and/or other employee benefit plans with benefit obligations in excess of plan assets as of the measurement date. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e2417-114920 + Details
Name: | us-gaap_ScheduleOfBenefitObligationsInExcessOfFairValueOfPlanAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e2439-114920 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e2417-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e2410-114920 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=77993564&loc=d3e4179-114921 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfDefinedBenefitPlansDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the effect of a one-percentage-point increase and the effect of a one-percentage-point decrease in the assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic postretirement health care benefit costs and the accumulated postretirement benefit obligation for health care benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (m) -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfEffectOfOnePercentagePointChangeInAssumedHealthCareCostTrendRatesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of benefits expected to be paid by pension plans and/or other employee benefit plans in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfExpectedBenefitPaymentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the assumed health care cost trend rates for the next year used to measure the expected cost of benefits covered by the plans, including the ultimate trend rate(s) and when that rate is expected to be achieved. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfHealthCareCostTrendRatesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amounts related to pension plans and/or other employee benefit plans in accumulated other comprehensive income or loss that have not yet been recognized as components of net periodic benefit cost, such as the net gain (loss), net prior service cost or credit, and net transition asset or obligation. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (j) -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e1928-114920 + Details
Name: | us-gaap_ScheduleOfNetPeriodicBenefitCostNotYetRecognizedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration