<SEC-DOCUMENT>0001144204-18-038307.txt : 20180829
<SEC-HEADER>0001144204-18-038307.hdr.sgml : 20180829
<ACCEPTANCE-DATETIME>20180713143536
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ACCESSION NUMBER:		0001144204-18-038307
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20180713

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Arconic Inc.
		CENTRAL INDEX KEY:			0000004281
		STANDARD INDUSTRIAL CLASSIFICATION:	ROLLING DRAWING & EXTRUDING OF NONFERROUS METALS [3350]
		IRS NUMBER:				250317820
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		390 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022-4608
		BUSINESS PHONE:		2128362732

	MAIL ADDRESS:	
		STREET 1:		390 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022-4608

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALCOA INC.
		DATE OF NAME CHANGE:	20141003

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALCOA INC
		DATE OF NAME CHANGE:	19990105

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALUMINUM CO OF AMERICA
		DATE OF NAME CHANGE:	19920703
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    <TD STYLE="width: 76%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="width: 24%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Arconic Inc.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">390 Park Avenue</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New York, NY 10022 USA</FONT></TD></TR>
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<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">July 13, 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>VIA EDGAR</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">United States Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549-4631</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Attention: &#9;Kevin Stertzel</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>Re:</B></TD><TD STYLE="text-align: justify"><B>Arconic Inc.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38.75pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60.85pt; text-indent: 11.15pt"><B>Form 10-K for the year
ended December 31, 2017</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60.85pt; text-indent: 11.15pt"><B>Filed February 26, 2018</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60.85pt; text-indent: 11.15pt"><B>Form 10-Q for the period
ended March 31, 2018</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60.85pt; text-indent: 11.15pt"><B>Filed May 1, 2018</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 202.5pt 0pt 1in"><B>Form 8-K filed on April 30, 2018</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 202.5pt 0pt 1in"><B>File No. 001-03610</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 202.5pt 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 1.25pt">Dear Mr. Stertzel:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 1.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 1.25pt; text-indent: 0.5in">On behalf of Arconic Inc.
(the &ldquo;Company&rdquo;), set forth below are responses to the comments of the Staff (the &ldquo;Staff&rdquo;) of the Securities
and Exchange Commission (the &ldquo;Commission&rdquo;) contained in the Staff&rsquo;s letter dated June 20, 2018 (the &ldquo;Comment
Letter&rdquo;), relating to the Form 10-K for the fiscal year ended December 31, 2017 (the &ldquo;2017 10-K&rdquo;), filed by the
Company on February 26, 2018; the Form 10-Q for the period ended March 31, 2018 (the &ldquo;2018 Q1 10-Q&rdquo;), filed by the
Company on May 1, 2018; and the Form 8-K filed by the Company on April 30, 2018. The headings and numbered paragraphs of this letter
correspond to the headings and paragraph numbers contained in the Comment Letter, and to facilitate your review, we have reproduced
the text of the Staff&rsquo;s comments in boldfaced print below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 1.25pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 1.25pt; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt"><B><U>Form 10-K for the year ended December 31, 2017</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt"><B><U>Consolidated Financial Statements</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt"><B><U>A. Summary of Significant Accounting Policies
- Goodwill, page 66</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">1.</TD><TD STYLE="text-align: justify"><B>We note you recorded a $719 million goodwill impairment
charge related to the Arconic Forgings and Extrusions reporting unit (AFE) during the quarter ended December 31, 2017. Please
address the following:</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 36.05pt; text-indent: -35.3pt">&nbsp;</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><B>In your
2016 annual review of goodwill, we note you proceeded directly to the two-step quantitative impairment test for the AFE reporting
unit and determined that its estimated fair value exceeded its carrying value, resulting in no impairment. Tell us the amount
and/or percentage of headroom related to the AFE reporting unit based on your 2016 annual review. To the extent the estimated
fair value did not substantially exceed the carrying value in 2016, explain why no additional disclosures were provided; </B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6pt 0pt 52.7pt; text-indent: -16.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36.55pt"><B>Response: </B>The Company advises the Staff that
during our 2016 annual review of goodwill for potential impairment, the AFE reporting unit&rsquo;s fair value exceeded its carrying
value by approximately $300 million, or 20%. As the fair value was considered substantially in excess of the carrying value, no
additional disclosures were deemed necessary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6pt 0pt 0; text-align: justify"><B>&nbsp;</B></P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: black">&bull;</FONT></TD><TD STYLE="padding-right: 0.4pt"><FONT STYLE="color: black"><B>We note you use a discounted cash flow model to estimate the current
fair value </B></FONT><B>of your reporting units, which involves a number of significant assumptions and estimates, including markets
and market share, sales volumes and prices, production costs, tax rates, capital spending, discount rate, and working capital changes.
We also note your disclosure that the decrease in the AFE fair value in 2017 was primarily due to &ldquo;unfavorable performance
that is impacting operating margins and a higher discount rate due to an increase in the risk-free rate of return, while the carrying
value increased compared to prior year.&rdquo; Tell us the differences between the significant assumptions and estimates you used
to determine the AFE fair value in your 2017 and 2016 annual reviews and explain the nature and amount of the increase in the carrying
value. In addition, more fully explain the specific reasons for the unfavorable performance of this reporting unit and the specific
time periods during which they occurred; </B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.25in; text-indent: 0in"><BR>
<B>Response:</B> <FONT STYLE="font-size: 10pt">Arconic reviews goodwill annually for impairment in the fourth quarter. Additionally,
the Company analyzes its long-term view in conjunction with the annual budgeting process which occurs in the fourth quarter.&nbsp;
During this review for AFE, revenue forecasts in future years were revised downward in both aerospace and non-aerospace markets
due to ramp-up delays or weakening demand for our products. Also, AFE began to face higher raw material costs which it is not
able to pass along on certain customer contracts thereby decreasing its gross margin over time.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.25in; text-indent: 0in">The changes in significant
assumptions and estimates that were used to determine the AFE fair value in the 2017 discounted cash flow model (DCF) versus the
2016 DCF model were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.25in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">1)</TD><TD STYLE="padding-right: 0.4pt">near-term sales growth was forecasted to decrease in the 2017 DCF model due to a decline in forecasted
aerospace wide-body business and other non-aerospace business, and the slower ramp-up of a forgings production facility, which
resulted in lower than projected share gains assumed in the 2016 DCF model;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">2)</TD><TD STYLE="padding-right: 0.4pt">long-term sales growth rates (in 2020 and beyond) were forecasted to decrease from an average
of 4.1% in the 2016 DCF model to 3.0% in the 2017 DCF model relative to the factors noted above;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">3)</TD><TD STYLE="padding-right: 0.4pt">cost of goods sold excluding depreciation and amortization as a percentage of sales was forecasted
to be an average 2.8% points higher in the 2017 DCF model due to: an increase in raw material costs that are not able to be contractually
passed to the customer, consisting primarily of aluminum for which prices are highly cyclical and unpredictable, increasing 30%
from the 2016 DCF model to the 2017 DCF model; and less favorable expected operating performance challenged by the slower ramp-up
of a forgings production facility; and compounded by the lower than expected share gain on some high margin business in the latter
half of 2017;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">4)</TD><TD STYLE="padding-right: 0.4pt">capital expenditures as a percentage of sales, which are reviewed in conjunction with the annual
budgeting process in the fourth quarter, were forecasted to be an average 0.5% points higher in the 2017 DCF model;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">5)</TD><TD STYLE="padding-right: 0.4pt">working capital as a percentage of sales was forecasted to be 11.5% points higher in the 2017
DCF model due to a forecasted increase in receivables terms and higher inventory levels required to meet expected customer demand;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">6)</TD><TD STYLE="padding-right: 0.4pt">the effective tax rate decreased 12% points in the 2017 DCF model as a result of the enactment
of the Tax Cuts and Jobs Act of 2017 in December 2017; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">7)</TD><TD STYLE="padding-right: 0.4pt">the discount rate, which is updated in the fourth quarter for the annual goodwill impairment review,
increased 94 basis points in the 2017 DCF model compared to the 2016 DCF model due to a 55 basis point increase in the risk free
borrowing rate and a 110 basis point increase in the credit risk spread.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.25in">In addition, the carrying value of AFE increased
by approximately $130 million in the 2017 DCF model primarily due to a decrease in accrued liabilities resulting from a decline
in the fair value of a contingent earn-out from a 2014 acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.25in">While LME prices rose and ramp-up challenges
continued throughout 2017, these events alone were not deemed triggering events for an impairment assessment, given that the review
of financial performance of AFE throughout 2017 noted consistent revenue trends and positive operating and cash flow performance.
These events, combined with other additional factors that became known in the latter half of the year, such as weakening demand
for our products, declines in revenue forecasts, lower than expected share gains on some higher margin business, and changes in
discount rate, carrying values and capital expenditures, resulted in the impairment in the fourth quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 35.3pt"></TD><TD STYLE="width: 17.4pt">&bull;</TD><TD STYLE="padding-right: 0.4pt"><B>Tell us what cautionary disclosures you provided in your exchange act filings prior to the
FY 2017 Form 10-K regarding the potential for a material goodwill impairment charge at the AFE reporting unit. To the extent prior
disclosures were not provided, explain why; and</B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><B>Tell us what disclosures you have provided regarding
the expected impact of unfavorable performance related to the AFE reporting unit based on the goodwill impairment.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Response</B>: The Company advises the Staff that we believe
that the disclosures set forth in our 2016 Form 10-K were responsive to the inherent sensitivities and uncertainties within our
valuation models, and in particular, we noted the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">On pages 58 and 59 of the Form 10-K, under the heading Critical
Accounting Policies and Estimates in Management&rsquo;s Discussion&nbsp;&amp; Analysis, we disclosed the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Under the two-step quantitative impairment test, the
evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill.
Arconic uses a discounted cash flow (DCF) model to estimate the current fair value of its reporting units when testing for impairment,
as management believes forecasted cash flows are the best indicator of such fair value. A number of significant assumptions and
estimates are involved in the application of the DCF model to forecast operating cash flows, including markets and market share,
sales volumes and prices, production costs, tax rates, capital spending, discount rate, and working capital changes. Most of these
assumptions vary significantly among the reporting units. Cash flow forecasts are generally based on approved business unit operating
plans for the early years and historical relationships in later years. The betas used in calculating the individual reporting units&rsquo;
WACC rate are estimated for each business with the assistance of valuation experts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">Also, in Item 1A. Risk Factors (pages 18 and 19) we disclosed
the following regarding the potential decline in performance of the Company including AFE:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>The markets for Arconic&rsquo;s products are
highly cyclical and are influenced by a number of factors, including global economic conditions. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Arconic is subject to cyclical fluctuations in global
economic conditions and lightweight metals end-use markets. Arconic sells many products to industries that are cyclical, such as
the aerospace, automotive, and commercial construction and transportation industries, and the demand for its products is sensitive
to, and quickly impacted by, demand for the finished goods manufactured by its customers in these industries, which may change
as a result of changes in regional or worldwide economies, currency exchange rates, energy prices or other factors beyond its control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; color: blue">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="background-color: white">In particular,
Arconic derives a significant portion of its revenue from products sold to the aerospace industry, which can be highly cyclical
and reflective of changes in the general economy. The commercial aerospace industry is historically driven by the demand from commercial
airlines for new aircraft. The U.S. and international commercial aviation industries may face challenges arising from competitive
pressures and fuel costs. Demand for commercial aircraft is influenced by airline industry profitability, trends in airline passenger
traffic, the state of U.S., regional and world economies, the ability of aircraft purchasers to obtain required financing and numerous
other factors including the effects of terrorism, health and safety concerns, environmental constraints imposed upon aircraft operators,
the retirement of older aircraft, and technological improvements to new engines. The military aerospace cycle is highly dependent
on U.S. and foreign government funding; however, it is also driven by the effects of terrorism, a changing global political environment,
U.S. foreign policy, the retirement of older aircraft, and technological improvements to new engines.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="background-color: white">While Arconic
believes that the long-term prospects for its products are positive, the Company is unable to predict the future course of industry
variables, the strength of the U.S., regional or global economies, or the effects of government intervention. Negative economic
conditions, such as a major economic downturn, a prolonged recovery period, or disruptions in the financial markets, could have
a material adverse effect on Arconic&rsquo;s business, financial condition or results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Arconic&rsquo;s business could be adversely
affected by increases in the cost of aluminum. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Arconic derives a significant portion of its revenue
from aluminum-based products. The price of primary aluminum has historically been subject to significant cyclical price fluctuations
and the timing of changes in the market price of aluminum is largely unpredictable. Although the Company&rsquo;s pricing of products
is generally intended to pass the risk of metal price fluctuations on to the Company&rsquo;s customers, Arconic may not be able
to pass on the entire cost of increases to its customers and there can be a potential time lag on certain products between increases
in costs for aluminum and the point when the Company can implement a corresponding increase in price to its customers. As a result,
Arconic may be exposed to such price fluctuations during the time lag. If this occurs, it could have a material adverse effect
on Arconic&rsquo;s financial position, results of operations and cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: blue">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: blue"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: blue"><IMG SRC="image_004.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: blue">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="background-color: white">Additionally, in Part
II, Item 7. Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations, </FONT>under the heading
Review of 2016 Operating Results and 2017 Outlook, on page 38 we disclosed the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="background-color: white">In aerospace,
it is anticipated that the favorable impact of share gains on new platforms and engines will be somewhat offset by airframe destocking,
supply chain risks, and engine ramp-up challenges that are expected to continue throughout 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="background-color: white">Also, in that same section,
on pages 46 and 47, the Company provided the following disclosure within the Engineered Products and Solutions segment: </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0.5in"><FONT STYLE="background-color: white">In 2017,
demand in the commercial aerospace end market is expected to remain strong, driven by the ramp up of new aerospace engine platforms,
somewhat offset by continued customer destocking and engine ramp-up challenges. Demand in the defense end market is expected to
grow due to the continuing ramp-up of certain aerospace programs. Additionally, net productivity improvements are anticipated while
pricing pressure across all markets is likely to continue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><BR>
We assessed the financial performance of the AFE reporting unit throughout 2017 including forecast to actual comparisons and noted
consistent revenue trends and positive operating and cash flow performance, thus there were no indicators of impairment present
prior to the fourth quarter of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">2.</TD><TD STYLE="text-align: justify"><B>In order to provide investors with information to
better assess the probability of future goodwill impairment charges, please disclose, if accurate, that the estimated fair values
of the reporting units you quantitatively tested for impairment substantially exceeded their carrying values. For any reporting
unit whose estimated fair value did not substantially exceed its carrying value, please provide the following additional disclosures:</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 36.05pt; text-indent: -35.3pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><B>The percentage by which fair value exceeded carrying
value at the date of the most recent test;</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 52.7pt; text-indent: -17.4pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><B>The amount of goodwill allocated to the reporting
unit;</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 52.7pt; text-indent: -17.4pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><B>A description of key assumptions used and how they
were determined;</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 52.7pt; text-indent: -17.4pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 52.7pt; text-indent: -17.4pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt"><IMG SRC="image_004.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 52.7pt; text-indent: -17.4pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><B>A discussion of the degree of uncertainty associated
with key assumptions and a sensitivity analysis of the impact of changes in key assumptions; and</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 52.7pt; text-indent: -17.4pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">&bull;</TD><TD STYLE="text-align: justify"><B>A description of potential events and/or changes
in circumstances that could reasonably be expected to negatively affect key assumptions.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 52.7pt; text-indent: -17.4pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.75in"><B>Please refer to Item 303(a)(3)(ii) of Regulation
S-K and Section V of the Commission's Guidance Regarding Management's Discussion and Analysis of Financial Condition and Results
of Operations, SEC Release No. 34-48960.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 35.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Response: </B>The Company advises the Staff that
for each of its reporting units that were quantitatively tested for impairment in the fourth quarter of 2017, the estimated fair
value substantially exceeded the carrying value, with excess fair value of greater than 55% for each reporting unit. The Company
will revise future filings to reflect that the fair values are substantially in excess of carrying values, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">The Company respectfully advises the Staff that in
future filings, to the extent that we determine that any of our reporting units have fair values that are not substantially in
excess of their respective carrying values, we will disclose: the percentage by which fair value exceeded carrying value at the
date of the most recent test; the amount of goodwill allocated to the reporting unit; a description of key assumptions used and
how they were determined; a discussion of the degree of uncertainty associated with key assumptions and a sensitivity analysis
of the impact of changes in key assumptions; and a description of potential events and/or changes in circumstances that could reasonably
be expected to negatively affect key assumptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B><U>Form 10-Q for the period ended March 31, 2018</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B><U>Consolidated Financial Statements</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B><U>A. Basis of Presentation, page 7</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="padding-right: 0.4pt"><B>We note your disclosure that &quot;In January 2018, management changed the organizational structure
of the businesses in its Engineered Products and Solutions (EP&amp;S) segment, from four business units to three business units,
with a focus on aligning its internal structure to core markets and customers and reducing cost.&quot; We also note that your CEO
made a statement during your most recent earnings call that the three EP&amp;S business unit Presidents now report directly to
him. Based on these changes, please address the following:</B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><IMG SRC="image_004.jpg" ALT=""></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD STYLE="padding-right: 0.4pt"><B>If you concluded that these three business units are not operating segments, fully explain
to us how you made that determination; and</B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD STYLE="padding-right: 0.4pt"><B>If you concluded that these three business units are operating segments, demonstrate to us
how you determined that aggregating these operating segments into one reportable segment is appropriate. </B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Response: </B>The Company advises the Staff that
for the first quarter of 2018 and prior periods, the Company continued to be managed based on its reporting segments, consisting
of Engineered Products and Solutions (EP&amp;S), Global Rolled Products (GRP), and Transportation and Construction Solutions (TCS).
These reporting segments are referred to internally as Groups, and each Group is managed by a Group President. The Company&rsquo;s
business units report up through its Group Presidents who report to the CEO. The variable compensation of the Group Presidents
is based on the combined performance of the business units within their Group. The CEO is the Chief Operating Decision Maker, and
he regularly reviews reports of financial results and makes capital decisions at the reporting segment level.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">The decision in April 2018 by the CEO to have the
EP&amp;S business units report directly to him is considered temporary, as he continues to learn more about the Company, evaluate
the operations, and carry out an ongoing strategy and portfolio review since his start in January 2018. The EP&amp;S segment is
substantially more complex than GRP and TCS in terms of the number of operating locations, the recent acquisitions made over the
last four years, and the level of integration into the Company&rsquo;s enterprise business system. The Company&rsquo;s internal
reporting, including financial reports to the CEO to assist in managing the business as well as reports to our Board of Directors,
and its external reporting to investors, analysts and the SEC continue to be on the basis of the three reporting segments of EP&amp;S,
GRP and TCS. The EP&amp;S Group organizational structure remains in place and variable compensation for all employees within EP&amp;S
continues to be based on Group results and not based on the individual business unit results. The Company will continue to evaluate
its reporting segments to determine if changes are warranted in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B><U>Form 8-K filed on April 30, 2018</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B><U>Free Cash Flow, page 12</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">4.</TD><TD STYLE="text-align: justify"><B>Your computation of free cash flow differs from
the typical calculation (cash flows from operating activities as presented in the statement of cash flows under GAAP, less capital
expenditures). Please see Question 102.07 of the Non-GAAP Compliance and Disclosure Interpretations and revise the title of the
non-GAAP measure you present.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 36.05pt; text-indent: -35.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Response: </B>The Company advises the Staff
that we will revise future filings to reflect our computation of free cash flow using the title &ldquo;Adjusted Free Cash Flow&rdquo;
rather than &ldquo;Free Cash Flow.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.4pt 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">If you have any questions with respect
to the foregoing, please contact me at (212) 836-2707 or Paul Myron, Vice President and Controller, at (412) 553-4360.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>



<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 65%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 35%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sincerely,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-indent: 0in; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/ Ken Giacobbe</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ken Giacobbe</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Executive Vice President and </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Chief Financial Officer</FONT></TD></TR>
</TABLE>


<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
