Restructuring and Other Charges

In the first quarter of 2020, Arconic Corporation recorded a net benefit of $19 in Restructuring and other charges, which were comprised of the following components: a $31 gain on the sale of an extrusions plant in South Korea (see Note M); a $6 loss on the sale of an aluminum rolling mill in Brazil (see Note M); and a $6 net charge for other items.

In the first quarter of 2019, Arconic Corporation recorded a net charge of $2 in Restructuring and other charges, which were comprised of the following components: an $11 charge for layoff costs, including the separation of approximately 155 employees (all within the Rolled Products and Building and Construction Systems segments) and a $9 net benefit for an allocation of ParentCo’s corporate restructuring activity (see Cost Allocations in Note A).

As of March 31, 2020, approximately 270 of the 480 employees associated with 2019 restructuring programs were separated. The remaining separations for the 2019 restructuring programs are expected to be completed during the remainder of 2020. In the first quarter of 2020, Arconic Corporation made cash payments of $4 against layoff reserves related to 2019 restructuring programs.

Activity and reserve balances for restructuring charges were as follows:



	Layoff costs			Other costs			Total
Reserve balances at December 31, 2018	$	1		$	3		$	4
Cash payments	(12		)	(3		)	(15		)
Restructuring charges	30			2			32
Other⁽¹⁾	1			(1		)	—
Reserve balances at December 31, 2019	20			1			21
Cash payments	(4		)	—			(4		)
Restructuring charges	—			—			—
Other⁽¹⁾	(1		)	—			(1		)
Reserve balances at March 31, 2020⁽²⁾	$	15		$	1		$	16

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(1)	Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation.


(2)	The remaining reserves are expected to be paid in cash during the remainder of 2020.