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Restructuring and Other Charges | 6 Months Ended
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Jun. 30, 2019
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | Restructuring and Other Charges In the second quarter of 2019, Arconic recorded Restructuring and other charges of $499 ($397 after-tax), which included a $428 ($345 after-tax) charge for impairment of the Disks long-lived asset group (see Note M); a $30 ($22 after-tax) charge for layoff costs, including the separation of approximately 350 employees (131 in the Transportation and Construction Solutions segment, 125 in the Engineered Products and Solutions segment, 69 in Corporate, and 25 in the Global Rolled Products segment); a $16 ($12 after-tax) charge for impairment of a trade name intangible asset and properties, plant, and equipment; a $12 ($9 after-tax) charge for other exit costs from lease terminations, primarily related to the exit of the corporate aircraft; a $12 ($9 after-tax) loss on sale primarily related to a small additive business; accelerated depreciation of $2 ($2 after-tax); a $2 ($1 after-tax) charge for pension plan settlement accounting; and a benefit of $3 ($3 after-tax) for the reversal of a number of small layoff reserves related to prior periods. In the six months ended June 30, 2019, Arconic recorded Restructuring and other charges of $511 ($407 after-tax), which included a $428 ($345 after-tax) charge for impairment of the Disks long-lived asset group; a $95 ($73 after-tax) charge for layoff costs, including the separation of approximately 1,127 employees (463 in Corporate, 301 in Engineered Products and Solutions segment, 252 in Transportation and Construction Solutions segment, and 111 in Global Rolled Products segment); a $16 ($12 after-tax) charge for impairment of a trade name intangible asset and properties, plant, and equipment; a $12 ($9 after-tax) charge for other exit costs from lease terminations, primarily related to the exit of the corporate aircraft; a $12 ($9 after-tax) loss on sale of assets primarily related to a small additive business; a $4 ($3 after-tax) charge for pension plan settlement accounting; accelerated depreciation of $2 ($2 after-tax); a $2 ($1 after-tax) net charge for executive severance net of the benefit of forfeited executive stock compensation; and a $1 ($1 after-tax) charge for other miscellaneous items; partially offset by a benefit of $58 ($45 after-tax) related to the elimination of the life insurance benefit for the U.S. salaried and non-bargaining hourly retirees of the Company and its subsidiaries, and a benefit of $3 ($3 after-tax) for the reversal of a number of small layoff reserves related to prior periods. In the second quarter of 2018, Arconic recorded Restructuring and other charges of $15 ($12 after-tax), which included $9 ($7 after-tax) for pension curtailment charges; a $4 ($3 after-tax) charge for layoff costs, including the separation of approximately 24 employees (all in the Engineered Products and Solutions segment); a charge of $5 ($4 after-tax) for exit costs primarily related to the New York office; a charge of $2 ($2 after-tax) for other miscellaneous items; and a benefit of $5 ($4 after-tax) for the reversal of a number of small layoff reserves related to prior periods. In the six months ended June 30, 2018, Arconic recorded Restructuring and other charges of $22 ($17 after-tax), which included $14 ($11 after-tax) for pension curtailment charges; a charge of $8 ($6 after-tax) for layoff costs, including the separation of approximately 40 employees (24 in the Engineered Products and Solutions segment and 16 in Corporate); a charge of $5 ($4 after-tax) for exit costs primarily related to the New York office; a charge of $4 ($3 after-tax) for other miscellaneous items; and a benefit of $9 ($7 after-tax) for the reversal of a number of small layoff reserves related to prior periods. As of June 30, 2019, approximately 583 of the 1,127 employees (previously 1,150) associated with the 2019 restructuring programs were separated. The 2018 and 2017 restructuring programs are essentially completed. Most of the remaining separations for the 2019 restructuring program are expected to be completed by the end of 2019. For the second quarter and six months ended June 30, 2019, Arconic made cash payments of $26 and $40, respectively. Activity and reserve balances for restructuring and other charges were as follows:
| Layoff costs |  | Other exit costs |  | Total
Reserve balances at December 31, 2017 | $ | 56 |  |  | $ | 2 |  |  | $ | 58 |
Cash payments | (47 | ) |  | (2 | ) |  | (49 | )
Restructuring charges | 111 |  |  | 13 |  |  | 124 |
Other(1) | (110 | ) |  | 2 |  |  | (108 | )
Reserve balances at December 31, 2018 | 10 |  |  | 15 |  |  | 25 |
Cash payments | (40 | ) |  | (3 | ) |  | (43 | )
Restructuring charges | 39 |  |  | 472 |  |  | 511 |
Other(2) | 56 |  |  | (479 | ) |  | (423 | )
Reserve balances at June 30, 2019 | $ | 65 |  |  | $ | 5 |  |  | $ | 70 |
Other includes adjustments of previously recorded restructuring charges and credits, and the effects of foreign currency translation.
(1) | In 2018, Other for layoff costs included reclassifications of $119 in pension costs and a $28 credit in postretirement benefits, as the impacts were reflected in Arconic's separate liabilities for Accrued pension benefits and Accrued postretirement benefits, and the reversal of previously recorded restructuring charges of $19.
(2) | In 2019, Other for layoff costs included reclassifications of a $58 credit for elimination of life insurance benefits for U.S. salaried and non-bargaining hourly retirees and a $4 pension settlement charge, as the impacts were reflected in Arconic's separate liabilities for Accrued pension benefits and Accrued postretirement benefits, and other credits of $2.
In 2019, Other for other exit costs included a $428 charge for impairment of the Disks long-lived asset group; an impairment of a trade name intangible asset and properties, plant, and equipment of $16; reclassifications for loss on sale of assets of $12 primarily related to a small additive business; a charge for lease terminations of $12; and accelerated depreciation of $2 as the impacts were primarily reflected in various noncurrent asset accounts. Additionally, Other included the reclassification of $9 in lease exit costs to right-of-use assets within Other noncurrent assets in accordance with the new lease accounting standard. The remaining reserves are expected to be paid in cash during 2019, with the exception of approximately $15, which is expected to be paid in 2020 related to severance payments.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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