v3.22.0.1

Segment and Related Information​ | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
Segment and Related Information​ | Segment and Related Information Segment Information Arconic has three operating and reportable segments, which are organized by product on a global basis: Rolled Products, Building and Construction Systems, and Extrusions (see segment descriptions below). The Company determined the chief operating decision maker to be the CEO, who regularly reviews the financial information of these three segments to assess performance and allocate resources. Arconic’s profit or loss measure for its reportable segments is Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization). The Company calculates Segment Adjusted EBITDA as Total sales (third-party and intersegment) minus each of (i) Cost of goods sold, (ii) Selling, general administrative, and other expenses, and (iii) Research and development expenses, plus Stock-based compensation expense and Metal price lag. Arconic’s Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies’ reportable segments. Segment assets are comprised of customer receivables; inventories; properties, plants, and equipment, net; and goodwill. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note B). Transactions among segments are established based on negotiation among the parties. The following are detailed descriptions of Arconic’s reportable segments: Rolled Products. This segment produces aluminum sheet and plate for a variety of end markets. Sheet and plate are sold directly to customers and through distributors related to the aerospace, ground transportation, packaging, building and construction, and industrial products (mainly used in the production of machinery and equipment and consumer durables) end markets. A small portion of this segment also produced aseptic foil for the packaging end market prior to February 1, 2020 (see Note S). While the customer base for flat-rolled products is large, a significant amount of sales of sheet and plate is to a relatively small number of customers. Prices for these products are generally based on the price of metal plus a premium for adding value to the aluminum to produce a semi-finished product, resulting in a business model in which the underlying price of metal is contractually passed-through to customers. Our subsidiaries that own and operate our facility located in Samara, Russia are, and have been since the Separation, subject to proceedings initiated by Russian regulatory authorities (see Note T). Building and Construction Systems. This segment manufactures products that are used primarily in the non-residential building and construction end market. These products include integrated aluminum architectural systems and architectural extrusions, which are sold directly to customers and through distributors. Extrusions. This segment produces a range of extruded and machined parts for the aerospace, ground transportation, and industrial products end markets. These products are sold directly to customers and through distributors. Prices for these products are generally based on the price of metal plus a premium for adding value to the aluminum to produce a semi-finished product, resulting in a business model in which the underlying price of metal is contractually passed-through to customers. The operating results and assets of Arconic’s reportable segments were as follows (differences between segment totals and Arconic’s consolidated totals for line items not reconciled are in Corporate):
| Rolled Products |  | Building and Construction Systems |  | Extrusions |  | Total
2021 |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |
Third-party sales | $ | 6,187 |  |  | $ | 1,011 |  |  | $ | 306 |  |  | $ | 7,504 |
Intersegment sales | 33 |  |  | — |  |  | 1 |  |  | 34 |
Total sales | $ | 6,220 |  |  | $ | 1,011 |  |  | $ | 307 |  |  | $ | 7,538 |
Segment Adjusted EBITDA(1) | $ | 655 |  |  | $ | 130 |  |  | $ | (28) |  |  | $ | 757 |
Provision for depreciation and amortization | $ | 197 |  |  | $ | 17 |  |  | $ | 23 |  |  | $ | 237 |
2020 |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |
Third-party sales | $ | 4,335 |  |  | $ | 963 |  |  | $ | 381 |  |  | $ | 5,679 |
Intersegment sales | 19 |  |  | — |  |  | 2 |  |  | 21 |
Total sales | $ | 4,354 |  |  | $ | 963 |  |  | $ | 383 |  |  | $ | 5,700 |
Segment Adjusted EBITDA(1),(2) | $ | 527 |  |  | $ | 137 |  |  | $ | (16) |  |  | $ | 648 |
Provision for depreciation and amortization | $ | 192 |  |  | $ | 18 |  |  | $ | 25 |  |  | $ | 235 |
2019 |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |
Third-party sales | $ | 5,609 |  |  | $ | 1,118 |  |  | $ | 550 |  |  | $ | 7,277 |
Intersegment sales | 25 |  |  | — |  |  | 3 |  |  | 28 |
Total sales | $ | 5,634 |  |  | $ | 1,118 |  |  | $ | 553 |  |  | $ | 7,305 |
Segment Adjusted EBITDA(1),(2) | $ | 640 |  |  | $ | 126 |  |  | $ | (9) |  |  | $ | 757 |
Provision for depreciation and amortization | $ | 185 |  |  | $ | 18 |  |  | $ | 29 |  |  | $ | 232 |
| Rolled Products |  | Building and Construction Systems |  | Extrusions |  | Total
2021 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Segment assets* | $ | 4,766 |  |  | $ | 416 |  |  | $ | 381 |  |  | $ | 5,563 |
Supplemental information: |  |  |  |  |  |  |
Capital expenditures | 147 |  |  | 11 |  |  | 14 |  |  | 172 |
Goodwill | 253 |  |  | 69 |  |  | — |  |  | 322 |
2020 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Segment assets | $ | 3,895 |  |  | $ | 381 |  |  | $ | 420 |  |  | $ | 4,696 |
Supplemental information: |  |  |  |  |  |  |
Capital expenditures | 134 |  |  | 7 |  |  | 11 |  |  | 152 |
Goodwill | 254 |  |  | 71 |  |  | 65 |  |  | 390 |
_____________________ *In the 2021 fourth quarter, the Rolled Products segment recorded a net adjustment of $10 (approximately $7 of which relates to prior quarters in 2021) related to write-downs of scrap inventory. The out-of-period amounts were not material to any interim or annual period. The following tables reconcile certain segment information to consolidated totals:
For the year ended December 31, |  | 2021 |  | 2020 |  | 2019
Sales: |  |  |  |  |  |
Total segment sales |  | $ | 7,538 |  |  | $ | 5,700 |  |  | $ | 7,305 |
Elimination of intersegment sales |  | (34) |  |  | (21) |  |  | (28) |
Other |  | — |  |  | (4) |  |  | — |
Consolidated sales |  | $ | 7,504 |  |  | $ | 5,675 |  |  | $ | 7,277 |
The following table reconciles total Segment Adjusted EBITDA to consolidated net (loss) income attributable to Arconic Corporation:
For the year ended December 31, |  | 2021 |  | 2020 |  | 2019
Total Segment Adjusted EBITDA(1) |  | $ | 757 |  |  | $ | 648 |  |  | $ | 757 |
Unallocated amounts: |  |  |  |  |  |
Corporate expenses(1),(2) |  | (33) |  |  | (24) |  |  | (53) |
Stock-based compensation expense (K) |  | (22) |  |  | (23) |  |  | (40) |
Metal price lag(3) |  | (16) |  |  | (27) |  |  | (39) |
Provision for depreciation and amortization |  | (253) |  |  | (251) |  |  | (252) |
Impairment of goodwill (B & O) |  | (65) |  |  | — |  |  | — |
Restructuring and other charges(4) (E) |  | (624) |  |  | (188) |  |  | (87) |
Other(1),(5) |  | (36) |  |  | (55) |  |  | (71) |
Operating (loss) income |  | (292) |  |  | 80 |  |  | 215 |
Interest expense (F) |  | (100) |  |  | (118) |  |  | (115) |
Other (expenses) income, net(1) (G) |  | (67) |  |  | (70) |  |  | 15 |
Benefit (Provision) for income taxes (I) |  | 62 |  |  | (1) |  |  | 62 |
Net income attributable to noncontrolling interest |  | — |  |  | — |  |  | — |
Consolidated net (loss) income attributable to Arconic(2) |  | $ | (397) |  |  | $ | (109) |  |  | $ | 177 |
(1)In preparation for the Separation, effective January 1, 2020, certain U.S. defined benefit pension and other postretirement plans previously sponsored by ParentCo were separated into standalone plans for both Arconic and Howmet Aerospace. Additionally, effective April 1, 2020, Arconic assumed a portion of the obligations associated with certain non-U.S. defined benefit pension plans that included participants related to both the Arconic Businesses and the Howmet Aerospace Businesses, as well as legacy defined benefit pension plans assigned to the Company as a result of the Separation. As a result, beginning in the first quarter of 2020 for these U.S. plans and in the second quarter of 2020 for these non-U.S. plans, Arconic applied defined benefit plan accounting resulting in benefit plan expense being recorded in operating income (service cost) and nonoperating income (nonservice cost). In all historical periods prior to these respective timeframes, Arconic was considered a participating employer in ParentCo’s defined benefit plans and, therefore, applied multiemployer plan accounting resulting in the Company’s share of benefit plan expense being recorded entirely in operating income. Also, Arconic is the plan sponsor of certain other non-U.S. defined benefit plans that contain participants related only to the Arconic Businesses and, therefore, the related benefit plan expense was recorded in accordance with defined benefit plan accounting in all periods presented. The following table presents the total benefit plan expense (excluding settlements and curtailments) recorded by Arconic based on the foregoing in each period presented:
For the year ended December 31, |  | 2021 |  | 2020 |  | 2019
Segment Adjusted EBITDA: |  |  |  |  |  |
Rolled Products |  | $ | (18) |  |  | $ | (17) |  |  | $ | (62) |
Building and Construction Systems |  | (2) |  |  | (2) |  |  | (5) |
Extrusions |  | (7) |  |  | (7) |  |  | (18) |
Segment total |  | (27) |  |  | (26) |  |  | (85) |
Unallocated amounts: |  |  |  |  |  |
Corporate expenses |  | — |  |  | — |  |  | (15) |
Other |  | — |  |  | 1 |  |  | (9) |
Subtotal |  | — |  |  | 1 |  |  | (24) |
Other expenses, net |  | (60) |  |  | (78) |  |  | (2) |
Total |  | $ | (87) |  |  | $ | (103) |  |  | $ | (111) |
(2)Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities. The amounts presented for all periods prior to second quarter 2020 include an allocation of ParentCo’s corporate expenses, including research and development expenses, for the portion of the period prior to the Separation Date (see Cost Allocations in Note A). (3)Metal price lag represents the financial impact of the timing difference between when aluminum prices included in Sales are recognized and when aluminum purchase prices included in Cost of goods sold are realized. This adjustment aims to remove the effect of the volatility in metal prices and the calculation of this impact considers applicable metal hedging transactions. (4)In 2021 and 2020, Restructuring and other charges include a $584 and $199, respectively, charge for the settlement of certain employee retirement benefits virtually all of which were within the United States and the United Kingdom (see Note H). (5)Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on the Company’s Statement of Consolidated Operations that are not included in Segment Adjusted EBITDA.
December 31, |  | 2021 |  | 2020
Assets: |  |  |  |
Total segment assets |  | $ | 5,563 |  |  | $ | 4,696 |
Unallocated amounts: |  |  |  |
Cash and cash equivalents |  | 335 |  |  | 787 |
Prepaid expenses and other current assets |  | 55 |  |  | 53 |
Corporate fixed assets, net |  | 153 |  |  | 187 |
Operating lease right-of-use assets |  | 122 |  |  | 144 |
Deferred income taxes (I) |  | 229 |  |  | 329 |
Other noncurrent assets |  | 88 |  |  | 97 |
Other |  | 35 |  |  | 21 |
Consolidated assets |  | $ | 6,580 |  |  | $ | 6,314 |
Customer Information In 2021, 2020, and 2019 Arconic generated more than 10% of its consolidated sales from one customer, Ford Motor Company. These sales amounted to $761, $647, and $942 in 2021, 2020, and 2019 respectively, and were included in the Rolled Products segment. Geographic Area Information Geographic information for sales was as follows (based upon the country where the point of sale occurred):
For the year ended December 31, |  | 2021 |  | 2020 |  | 2019
Sales: |  |  |  |  |  |
United States |  | $ | 4,753 |  |  | $ | 3,697 |  |  | $ | 4,760 |
Russia* |  | 793 |  |  | 535 |  |  | 512 |
China |  | 696 |  |  | 429 |  |  | 486 |
Hungary* |  | 625 |  |  | 462 |  |  | 614 |
France |  | 260 |  |  | 207 |  |  | 277 |
United Kingdom |  | 169 |  |  | 144 |  |  | 230 |
Other |  | 208 |  |  | 201 |  |  | 398 |
|  | $ | 7,504 |  |  | $ | 5,675 |  |  | $ | 7,277 |
_____________________ *In all periods presented, sales of a portion of aluminum products from Arconic’s plant in Russia were completed through the Company’s international selling company located in Hungary. Geographic information for long-lived assets was as follows (based upon the physical location of the assets):
December 31, |  | 2021 |  | 2020
Long-lived assets: |  |  |  |
United States |  | $ | 1,998 |  |  | $ | 2,019 |
China |  | 242 |  |  | 252 |
Russia |  | 200 |  |  | 213 |
Hungary |  | 98 |  |  | 108 |
United Kingdom |  | 79 |  |  | 82 |
France |  | 15 |  |  | 18 |
Other |  | 19 |  |  | 20 |
|  | $ | 2,651 |  |  | $ | 2,712 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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