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Pension and Other Postretirement Benefits | 6 Months Ended
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Jun. 30, 2019
Retirement Benefits [Abstract] |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The components of net periodic benefit cost were as follows:
| Second quarter ended |  | Six months ended
| June 30, |  | June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Pension benefits |  |  |  |  |  |  |
Service cost | $ | 6 |  |  | $ | 8 |  |  | $ | 13 |  |  | $ | 28 |
Interest cost | 59 |  |  | 55 |  |  | 118 |  |  | 110 |
Expected return on plan assets | (71 | ) |  | (77 | ) |  | (143 | ) |  | (154 | )
Recognized net actuarial loss | 34 |  |  | 42 |  |  | 69 |  |  | 84 |
Amortization of prior service cost (benefit) | 1 |  |  | 1 |  |  | 1 |  |  | 2 |
Settlements | 2 |  |  | — |  |  | 4 |  |  | — |
Curtailments | — |  |  | 9 |  |  | — |  |  | 14 |
Net periodic benefit cost(1) | $ | 31 |  |  | $ | 38 |  |  | $ | 62 |  |  | $ | 84 |
Other postretirement benefits |  |  |  |  |  |  |
Service cost | $ | 2 |  |  | $ | 2 |  |  | $ | 4 |  |  | $ | 4 |
Interest cost | 7 |  |  | 7 |  |  | 14 |  |  | 14 |
Recognized net actuarial loss | 1 |  |  | 2 |  |  | 2 |  |  | 4 |
Amortization of prior service cost (benefit) | (2 | ) |  | (2 | ) |  | (3 | ) |  | (4 | )
Curtailments | — |  |  | — |  |  | (58 | ) |  | — |
Net periodic benefit cost(1) | $ | 8 |  |  | $ | 9 |  |  | $ | (41 | ) |  | $ | 18 |
(1) | Service cost was included within Cost of goods sold, Selling, general administrative, and other expenses, and Research and development expenses; settlements and curtailments were included in Restructuring and other charges; and all other cost components were recorded in Other expense, net in the Statement of Consolidated Operations.
In the first quarter of 2019, the Company communicated to plan participants that, effective May 1, 2019, it will eliminate the life insurance benefit for its U.S. salaried and non-bargained hourly retirees of the Company and its subsidiaries. As a result of this change, in the first quarter of 2019, the Company recorded a decrease to the Accrued other postretirement benefits liability of $63 which was offset by a curtailment benefit of $58 in Restructuring and other charges and $5 in Accumulated other comprehensive loss. Additionally, in the first quarter of 2019, the Company communicated to plan participants that, effective December 31, 2019, it will eliminate certain health care subsidies for its U.S. salaried and non-bargained hourly retirees of the Company and its subsidiaries. As a result of this change, in the first quarter of 2019, the Company recorded a decrease to the Accrued other postretirement benefits liability of $12 which was offset in Accumulated other comprehensive loss. In the six months ended June 30, 2019, the Company applied settlement accounting to a U.S. pension plan due to lump sum payments to participants which resulted in settlement charges of $4 that were recorded in Restructuring and other charges. In June of 2019, the Company and the United Steelworkers (USW) reached a tentative three-year labor agreement covering approximately 3,400 employees at four U.S. locations; the previous labor agreement expired on May 15, 2019. The tentative agreement was ratified on July 11, 2019. In the second quarter of 2019, Arconic recognized $9 in Cost of goods sold on the accompanying Statement of Consolidated Operations primarily for a one-time signing bonus for employees. On July 25, 2019, the USW ratified a new four-year labor agreement covering approximately 560 employees at the Company’s Niles, Ohio facility. The prior labor agreement expired on June 30, 2018. On April 1, 2018, benefit accruals for future service and compensation under all of the Company's qualified and non-qualified defined benefit pension plans for U.S. salaried and non-bargaining hourly employees ceased. As a result of this change, in the first quarter of 2018, the Company recorded a decrease to the Accrued pension benefit liability of $136 related to the reduction of future benefits ($141 offset in Accumulated other comprehensive loss) and curtailment charges of $5 in Restructuring and other charges. On April 13, 2018, the United Auto Workers ratified a new five-year labor agreement, covering approximately 1,300 U.S. employees of Arconic, which expires on March 31, 2023. A provision within the agreement includes a retirement benefit increase for future retirees that participate in a defined benefit pension plan, which impacts approximately 300 of those employees. In addition, effective January 1, 2019, benefit accruals for future service ceased. As result of these changes, a curtailment charge of $9 was recorded in Restructuring and other charges in the second quarter of 2018. During the third quarter of 2016, the Pension Benefit Guaranty Corporation approved management’s plan to separate the Alcoa Inc. pension plans between Arconic Inc. and Alcoa Corporation. The plan stipulated that Arconic make cash contributions of $150 over a period of 30 months (from November 1, 2016) to its two largest pension plans. The Company satisfied the requirements of the plan by making payments of $34, $66, and $50 in April 2019, March 2018, and April 2017, respectively.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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