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Restructuring and Other Charges | 9 Months Ended
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Sep. 30, 2019
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | Restructuring and Other Charges In the third quarter of 2019, Arconic recorded Restructuring and other charges of $119 ($114 after-tax), which included: a charge of $102 ($102 after-tax) for impairment of assets associated with agreements to sell the Company's Brazilian rolling mill operations ($59) and U.K. forgings business ($43) (see Note Q); a charge of $8 ($6 after-tax) for impairment of properties, plants, and equipment related to the Company’s primary research and development facility; a charge of $4 ($3 after-tax) for pension plan settlement accounting; a charge of $4 ($3 after-tax) for accelerated depreciation; a charge of $2 ($1 after-tax) for layoff costs associated with the separation of 56 employees in the GRP segment; and a benefit of $1 ($1 after-tax) for the reversal of layoff reserves related to prior periods. In the nine months ended September 30, 2019, Arconic recorded Restructuring and other charges of $630 ($521 after-tax), which included: a charge of $428 ($345 after-tax) for impairment of the Disks long-lived asset group (see Note M); a charge of $102 ($102 after-tax) for impairment of assets associated with agreements to sell the Company's Brazilian rolling mill operations ($59) and U.K. forgings business ($43); a charge of $97 ($74 after-tax) for layoff costs, including the separation of 1,183 employees (463 in Corporate, 350 in the EP&F segment, and 370 in the GRP segment); a charge of $24 ($18 after-tax) for impairment of properties, plants, and equipment related to the Company’s primary research and development facility and a trade name intangible asset; a charge of $12 ($9 after-tax) for other exit costs from lease terminations, primarily related to the exit of the corporate aircraft; a charge of $12 ($9 after-tax) from the loss on sale of assets primarily related to a small additive business; a charge of $8 ($6 after-tax) for pension plan settlement accounting; charge of $6 ($5 after-tax) for accelerated depreciation; a net charge of $2 ($1 after-tax) for executive severance net of the benefit of forfeited executive stock compensation; and a charge of $1 ($1 after-tax) 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 $4 ($4 after-tax) for the reversal of a number of small layoff reserves related to prior periods. On October 18, 2019, the Company announced that it would curtail operations at its GRP plant in San Antonio, Texas before the end of 2019. The plant generates approximately $50 of annual revenue. The business will be transferred into other mills, which will improve the overall effectiveness of the Company’s GRP operations. The Company expects to record a restructuring charge of approximately $4 in the fourth quarter of 2019 associated with this curtailment. In the third quarter of 2018, Restructuring and other charges was a net benefit of $2 ($3 after-tax), which included a postretirement curtailment benefit of $28 ($22 after-tax) (see Note F); a charge of $12 ($9 after-tax) for contract termination costs and asset impairments associated with the shutdown of a facility in Acuna, Mexico; a charge of $8 ($6 after-tax) for layoff costs, including the separation of approximately 85 employees (65 in the EP&F segment and 20 in Corporate); a charge of $4 ($3 after-tax) for pension plan settlement accounting; a charge of $3 ($2 after-tax) for other miscellaneous items; and a benefit of $1 ($1 after-tax) for the reversal of a number of small layoff reserves related to prior periods. In the nine months ended September 30, 2018, Arconic recorded Restructuring and other charges of $20 ($14 after-tax), which included a postretirement curtailment benefit of $28 ($22 after-tax) (see Note F); a charge of $14 ($11 after-tax) for pension curtailments; a charge of $16 ($12 after-tax) for layoff costs, including the separation of approximately 125 employees (89 in the EP&F segment and 36 in Corporate); a charge of $12 ($9 after-tax) related to the shutdown of a facility in Acuna, Mexico as noted above; a charge of $7 ($5 after-tax) for other miscellaneous items; 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 pension plan settlement accounting; and a benefit of $10 ($8 after-tax) for the reversal of a number of small layoff reserves related to prior periods. As of September 30, 2019, approximately 745 of the 1,183 employees 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 programs are expected to be completed in the first half of 2020. For the third quarter and nine months ended September 30, 2019, Arconic made cash payments of $21 and $61, 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 | (61 | ) |  | (4 | ) |  | (65 | )
Restructuring charges | 45 |  |  | 585 |  |  | 630 |
Other(2) | 50 |  |  | (591 | ) |  | (541 | )
Reserve balances at September 30, 2019 | $ | 44 |  |  | $ | 5 |  |  | $ | 49 |
(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 charge of $8 for pension plan settlement accounting, as the impacts were reflected in Arconic's separate liabilities for Accrued pension benefits and Accrued postretirement benefits.
In 2019, Other for other exit costs included a charge of $428 for impairment of the Disks long-lived asset group; a charge of $102 for impairment of assets associated with agreements to sell the Company's Brazilian rolling mill operations and UK forgings business; a charge of $24 for impairment of properties, plants, and equipment related to the Company’s primary research and development facility and a trade name intangible asset; a charge of $12 from the loss on sale of assets primarily related to a small additive business; a charge of $12 for lease terminations; and a charge of $6 for accelerated depreciation as the impacts were primarily reflected in various noncurrent asset accounts; partially offset by a credit of $2. Additionally, Other included the reclassification of $9 in lease exit costs to reduce 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 the first half of 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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