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Segment and Related Information​
 12 Months Ended
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		ExtrusionsTotal
2021
Sales:
Third-party sales$6,187 $1,011 $306 $7,504 
Intersegment sales33 — 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 sales19 — 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 sales25 — 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		ExtrusionsTotal
2021
Assets:
Segment assets*$4,766 $416 $381 $5,563 
Supplemental information:
Capital expenditures147 11 14 172 
Goodwill253 69 — 322 
2020
Assets:
Segment assets$3,895 $381 $420 $4,696 
Supplemental information:
Capital expenditures134 7 11 152 
Goodwill254 71 65 390 
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*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 31,202120202019
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 31,202120202019
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)$177 
(1)In preparation for the Separation, effective January 1, 2020, certain U.S. defined benefit pension and other postretirement plans previously sponsored by ParentCo were separated into standalone plans for both Arconic and Howmet Aerospace. Additionally, effective April 1, 2020, Arconic assumed a portion of the obligations associated with certain non-U.S. defined benefit pension plans that included participants related to both the Arconic Businesses and the Howmet Aerospace Businesses, as well as legacy defined benefit pension plans assigned to the Company as a result of the Separation. As a result, beginning in the first quarter of 2020 for these U.S. plans and in the second quarter of 2020 for these non-U.S. plans, Arconic applied defined benefit plan accounting resulting in benefit plan expense being recorded in operating income (service cost) and nonoperating income (nonservice cost). In all historical periods prior to these respective timeframes, Arconic was considered a participating employer in ParentCo’s defined benefit plans and, therefore, applied multiemployer plan accounting resulting in the Company’s share of benefit plan expense being recorded entirely in operating income. Also, Arconic is the plan sponsor of certain other non-U.S. defined benefit plans that contain participants related only to the Arconic Businesses and, therefore, the related benefit plan expense was recorded in accordance with defined benefit plan accounting in all periods presented. The following table presents the total benefit plan expense (excluding settlements and curtailments) recorded by Arconic based on the foregoing in each period presented:
For the year ended December 31,202120202019
Segment Adjusted EBITDA:
Rolled Products$(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 31,20212020
Assets:
Total segment assets$5,563 $4,696 
Unallocated amounts:
Cash and cash equivalents335 787 
Prepaid expenses and other current assets55 53 
Corporate fixed assets, net153 187 
Operating lease right-of-use assets122 144 
Deferred income taxes (I)
229 329 
Other noncurrent assets88 97 
Other35 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 31,202120202019
Sales:
United States$4,753 $3,697 $4,760 
Russia*793 535 512 
China696 429 486 
Hungary*625 462 614 
France260 207 277 
United Kingdom169 144 230 
Other208 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 31,20212020
Long-lived assets:
United States$1,998 $2,019 
China242 252 
Russia200 213 
Hungary98 108 
United Kingdom79 82 
France15 18 
Other19 20 
$2,651 $2,712