v3.22.0.1

Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Schedule of Expenses Related to Pension and Other Postretirement Benefits

The following table summarizes the total expenses (excluding settlements and curtailments) recognized by Arconic related to the pension and other postretirement benefits described above:

												Pension benefits																		Other postretirement benefits
												For the year ended December 31,																		For the year ended December 31,
Type of Plan						Type of Expense						2021						2020						2019						2021						2020						2019
Cumulative Direct Plans						Net periodic benefit cost						$	68					$	82					$	5					$	19					$	22					$	—
Shared Plans						Multiemployer contribution expense						—						—						61						—						—						21
Shared Plans						Cost allocation						—						(1)						20						—						—						4
												$	68					$	81					$	86					$	19					$	22					$	25

Schedule of Obligations and Funded Status

						Pension benefits												Other postretirement benefits
December 31,						2021						2020						2021						2020
Change in benefit obligation
Benefit obligation at beginning of year						$	4,081					$	142					$	514					$	1
Establishment of additional defined benefit plans - New Direct Plans						—						3,688						—						567
Separation-related adjustments - Additional New Direct Plans						—						550						—						—
Service cost						21						21						6						5
Interest cost						63						108						11						13
Amendments						—						—						(30)						(52)
Actuarial (gains) losses(1)						(105)						382						(23)						33
Benefits paid						(183)						(273)						(38)						(55)
Settlements						(1,051)						(542)						—						—
Foreign currency translation impact						(9)						10						—						—
Divestitures						—						(5)						—						—
Medicare part D subsidy receipts						—						—						—						2
Benefit obligation at end of year(2)						$	2,817					$	4,081					$	440					$	514
Change in plan assets
Fair value of plan assets at beginning of year						$	2,754					$	79					$	—					$	—
Establishment of additional defined benefit plans - New Direct Plans						—						2,335						—						—
Separation-related adjustments - Additional New Direct Plans						—						600						—						—
Actual return on plan assets						177						350						—						—
Employer contributions						458						271						—						—
Benefits paid						(176)						(266)						—						—
Settlements						(1,069)						(595)						—						—
Foreign currency translation impact						(3)						3						—						—
Divestitures						—						(4)						—						—
Administrative expenses						(17)						(19)						—						—
Fair value of plan assets at end of year(2)						$	2,124					$	2,754					$	—					$	—
Funded status(2)						$	(693)					$	(1,327)					$	(440)					$	(514)
Amounts recognized on the Consolidated Balance Sheet:
Noncurrent assets						$	32					$	24					$	—					$	—
Current liabilities						(8)						(8)						(29)						(35)
Noncurrent liabilities						(717)						(1,343)						(411)						(479)
Net amount recognized						$	(693)					$	(1,327)					$	(440)					$	(514)
Amounts recognized in Accumulated Other Comprehensive Loss (pretax):
Net actuarial loss						$	1,389					$	2,204					$	166					$	197
Prior service benefit						—						—						(85)						(61)
Net amount recognized						$	1,389					$	2,204					$	81					$	136
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income (pretax):
Net actuarial loss						$	(137)					$	276					$	(23)					$	35
Amortization of net actuarial loss						(678)						(322)						(8)						(8)
Prior service benefit						—						—						(30)						(52)
Amortization of prior service benefit						—						—						6						4
Total						$	(815)					$	(46)					$	(55)					$	(21)

_____________________

(1)At December 31, 2021 and 2020, actuarial (gains) losses for pension benefits includes approximately $(130) and $370, respectively, attributable to the change in the discount rate used to determine the benefit obligation (see “Assumptions” below).

(2)At December 31, 2021, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $2,398, $1,744, and $654, respectively. At December 31, 2020, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $3,646, $2,379, and $1,267, respectively.

Schedule of Pension Plan Benefit Obligations

						Pension benefits
December 31,						2021						2020
The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows:
Projected benefit obligation						$	2,817					$	4,081
Accumulated benefit obligation						2,807						4,068
The aggregate projected benefit obligation and fair value of plan assets for defined benefit pension plans with projected benefit obligations in excess of plan assets was as follows:
Projected benefit obligation						2,472						3,795
Fair value of plan assets						1,747						2,444
The aggregate accumulated benefit obligation and fair value of plan assets for defined benefit pension plans with accumulated benefit obligations in excess of plan assets was as follows:
Accumulated benefit obligation						2,464						3,784
Fair value of plan assets						1,747						2,444

Schedule of Components of Net Periodic Benefit Cost

						Pension benefits(1)																		Other postretirement benefits
For the year ended December 31,						2021						2020						2019						2021						2020
Service cost						$	21					$	21					$	3					$	6					$	5
Interest cost						63						108						4						11						13
Expected return on plan assets						(110)						(170)						(5)						—						—
Amortization of net actuarial loss						94						123						3						8						8
Amortization of prior service benefit						—						—						—						(6)						(4)
Settlements(2)						584						199						—						—						—
Net periodic benefit cost(3)						$	652					$	281					$	5					$	19					$	22

_____________________

(1)In 2021 and 2020, net periodic benefit cost for U.S pension plans was $653 and $220, respectively.

(2)In 2021, Settlements were due to the purchase of a group annuity contract ($549 - see U.S. Pension Plan Annuitizations above) and the payment of lump-sum benefits ($35). In 2020, Settlements were due to two separate purchases of a group annuity contract (see U.S. Pension Plan Annuitizations and U.K. Pension Plan Annuitization above).

(3)Service cost was included within Cost of goods sold, Settlements were included within Restructuring and other charges, and all other components were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations.

Schedule of Assumptions

Weighted average assumptions used to determine benefit obligations and net periodic benefit cost for pension and other postretirement benefit plans were as follows:

			Benefit obligations												Net periodic benefit cost
			December 31,												For the year ended December 31,
			2021						2020						2021						2020						2019
Discount rate—pension plans			2.76		%				2.45		%				2.27		%				2.86		%				3.12		%
Discount rate—other postretirement benefit plans			2.90						2.61						2.19						2.49						*
Rate of compensation increase—pension plans			2.66						2.55						2.54						3.20						3.42
Expected long-term rate of return on plan assets—pension plans			—						—						4.91						6.09						6.73

______________________

*In 2019 the Company's other postretirement benefit plans were not material.

Schedule of Health Care Cost Trend Rates

Weighted-average assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (non-U.S. plans are not material):

						2021						2020
Health care cost trend rate assumed for next year						4.5		%				7.7		%
Rate to which the cost trend rate gradually declines						4.7		%				4.6		%
Year that the rate reaches the rate at which it is assumed to remain						2027						2026

Schedule of Plan Assets

Arconic’s pension plan investment policy and weighted average asset allocations at December 31, 2021 and 2020, by asset class, were as follows:

												Plan assets at December 31,
Asset class						Policy maximum						2021						2020
Equities						40%						31		%				20		%
Fixed income						100%						56						51
Other investments						30%						13						29
Total												100		%				100		%

The following table presents the fair value of pension plan assets classified under either the appropriate level of the fair value hierarchy or net asset value:

December 31, 2021						Level 1						Level 2						Level 3						Net Asset Value						Total
Equities:
Equity securities						$	12					$	—					$	—					$	392					$	404
Long/short equity hedge funds						—						—						—						24						24
Private equity						—						—						—						224						224
						$	12					$	—					$	—					$	640					$	652
Fixed Income:
Intermediate and long duration government/credit						$	95					$	412					$	—					$	612					$	1,119
Other						23						—						—						50						73
						$	118					$	412					$	—					$	662					$	1,192
Other investments:
Real estate						$	—					$	—					$	—					$	108					$	108
Discretionary and systematic macro hedge funds						—						—						—						99						99
Other						—						—						—						77						77
						$	—					$	—					$	—					$	284					$	284
Total*						$	130					$	412					$	—					$	1,586					$	2,128

December 31, 2020						Level 1						Level 2						Level 3						Net Asset Value						Total
Equities:
Equity securities						$	1					$	—					$	—					$	276					$	277
Long/short equity hedge funds						—						—						—						107						107
Private equity						—						—						—						143						143
						$	1					$	—					$	—					$	526					$	527
Fixed Income:
Intermediate and long duration government/credit						$	117					$	602					$	—					$	606					$	1,325
Other						1						—						—						44						45
						$	118					$	602					$	—					$	650					$	1,370
Other investments:
Real estate						$	39					$	—					$	—					$	93					$	132
Discretionary and systematic macro hedge funds						—						—						—						531						531
Other						—						—						—						94						94
						$	39					$	—					$	—					$	718					$	757
Total*						$	158					$	602					$	—					$	1,894					$	2,654

______________________

*As of December 31, 2021 and 2020, the total fair value of pension plan assets excludes a net payable of $4 and net receivable of $100, respectively, which represents securities not yet settled plus interest and dividends earned on various investments.

Schedule of Expected Benefit Payments

Benefit payments expected to be paid to pension (funded and unfunded) and other postretirement benefit plan participants are as follows:

For the year ended December 31,						Pension benefits						Other postretirement benefits
2022						$	164					$	29
2023						162						28
2024						160						27
2025						158						27
2026						158						27
2027 through 2031						763						128
						$	1,565					$	266

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