v3.22.2

Segment and Related Information​ | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
Segment and Related Information​ | Segment and Related Information 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 each of (i) Stock-based compensation expense, (ii) Metal price lag, and (iii) Unrealized (gains) losses on mark-to-market hedging instruments and derivatives (see below). Arconic’s Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies’ reportable segments. Effective in the first quarter of 2022, management modified the Company’s definition of Segment Adjusted EBITDA to exclude the impact of unrealized gains and losses on mark-to-market hedging instruments and derivatives. This modification was deemed appropriate as Arconic is considering entering into additional hedging instruments in future reporting periods if favorable conditions exist to mitigate cost inflation. Certain of these instruments may not qualify for hedge accounting resulting in unrealized gains and losses being recorded directly to Sales or Cost of goods sold, as appropriate (i.e., mark-to-market). Additionally, this change was also applied to derivatives that do not qualify for hedge accounting for consistency purposes. The Company does not have a regular practice of entering into contracts that are treated as derivatives for accounting purposes. Ultimately, this change was made to maintain the transparency and visibility of the underlying operating performance of Arconic’s reportable segments. Prior to this change, the Company had a limited number of hedging instruments and derivatives that did not qualify for hedge accounting, the unrealized impact of which was not material to Arconic’s Segment Adjusted EBITDA performance measure. Accordingly, prior period information presented was not recast to reflect this change. The operating results of Arconic’s reportable segments were as follows (differences between segment totals and the Company’s consolidated totals for line items not reconciled are in Corporate):
Second quarter ended June 30, |  | Rolled Products |  | Building and Construction Systems |  | Extrusions |  | Total
2022 |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |
Third-party sales |  | $ | 2,113 |  |  | $ | 329 |  |  | $ | 105 |  |  | $ | 2,547 |
Intersegment sales |  | 11 |  |  | — |  |  | — |  |  | 11 |
Total sales |  | $ | 2,124 |  |  | $ | 329 |  |  | $ | 105 |  |  | $ | 2,558 |
Segment Adjusted EBITDA |  | $ | 174 |  |  | $ | 53 |  |  | $ | (12) |  |  | $ | 215 |
Provision for depreciation and amortization |  | $ | 49 |  |  | $ | 5 |  |  | $ | 6 |  |  | $ | 60 |
2021 |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |
Third-party sales |  | $ | 1,474 |  |  | $ | 257 |  |  | $ | 70 |  |  | $ | 1,801 |
Intersegment sales |  | 10 |  |  | — |  |  | — |  |  | 10 |
Total sales |  | $ | 1,484 |  |  | $ | 257 |  |  | $ | 70 |  |  | $ | 1,811 |
Segment Adjusted EBITDA |  | $ | 173 |  |  | $ | 35 |  |  | $ | (8) |  |  | $ | 200 |
Provision for depreciation and amortization |  | $ | 49 |  |  | $ | 5 |  |  | $ | 5 |  |  | $ | 59 |
Management is conducting a business review of Extrusions aimed at identifying alternatives to improve the financial performance of this segment in future periods. Such alternatives could include a restructuring of the operations that may result in asset impairment charges. As of June 30, 2022, the aggregate carrying value of Extrusions’ properties, plants, and equipment, intangible assets, and operating lease right-of-use assets was approximately $230.
Six months ended June 30, |  | Rolled Products |  | Building and Construction Systems |  | Extrusions |  | Total
2022 |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |
Third-party sales |  | $ | 3,917 |  |  | $ | 620 |  |  | $ | 202 |  |  | $ | 4,739 |
Intersegment sales |  | 23 |  |  | — |  |  | 1 |  |  | 24 |
Total sales |  | $ | 3,940 |  |  | $ | 620 |  |  | $ | 203 |  |  | $ | 4,763 |
Segment Adjusted EBITDA |  | $ | 350 |  |  | $ | 97 |  |  | $ | (17) |  |  | $ | 430 |
Provision for depreciation and amortization |  | $ | 97 |  |  | $ | 9 |  |  | $ | 10 |  |  | $ | 116 |
2021 |  |  |  |  |  |  |  |
Sales: |  |  |  |  |  |  |  |
Third-party sales |  | $ | 2,838 |  |  | $ | 493 |  |  | $ | 145 |  |  | $ | 3,476 |
Intersegment sales |  | 17 |  |  | — |  |  | — |  |  | 17 |
Total sales |  | $ | 2,855 |  |  | $ | 493 |  |  | $ | 145 |  |  | $ | 3,493 |
Segment Adjusted EBITDA |  | $ | 338 |  |  | $ | 63 |  |  | $ | (12) |  |  | $ | 389 |
Provision for depreciation and amortization |  | $ | 97 |  |  | $ | 9 |  |  | $ | 11 |  |  | $ | 117 |
The following table reconciles total Segment Adjusted EBITDA to consolidated net income (loss) attributable to Arconic Corporation:
|  | Second quarter ended June 30, |  | Six months ended June 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Total Segment Adjusted EBITDA |  | $ | 215 |  |  | $ | 200 |  |  | $ | 430 |  |  | $ | 389 |
Unallocated amounts: |  |  |  |  |  |  |  |
Corporate expenses(1) |  | (10) |  |  | (10) |  |  | (19) |  |  | (19) |
Stock-based compensation expense |  | (8) |  |  | (5) |  |  | (13) |  |  | (7) |
Metal price lag(2) |  | 30 |  |  | (11) |  |  | (6) |  |  | (6) |
Unrealized gains on mark-to-market hedging instruments and derivatives (Q) |  | 21 |  |  | — |  |  | 23 |  |  | — |
Provision for depreciation and amortization |  | (62) |  |  | (62) |  |  | (122) |  |  | (125) |
Restructuring and other charges (E) |  | (2) |  |  | (597) |  |  | (7) |  |  | (598) |
Other(3) |  | (40) |  |  | (10) |  |  | (46) |  |  | (16) |
Operating income (loss) |  | 144 |  |  | (495) |  |  | 240 |  |  | (382) |
Interest expense |  | (26) |  |  | (25) |  |  | (51) |  |  | (48) |
Other income (expenses), net (F) |  | 35 |  |  | (15) |  |  | 18 |  |  | (37) |
(Provision) Benefit for income taxes (H) |  | (38) |  |  | 108 |  |  | (50) |  |  | 92 |
Net income attributable to noncontrolling interest |  | (1) |  |  | — |  |  | (1) |  |  | — |
Consolidated net income (loss) attributable to Arconic Corporation |  | $ | 114 |  |  | $ | (427) |  |  | $ | 156 |  |  | $ | (375) |
________________ (1)Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities. (2)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. (3)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. In the 2022 second quarter and six-month period, the respective amounts include costs related to a new union labor agreement of $19 (see Note G) and environmental remediation charges of $9 (see Environmental Matters in Note P), both of which were recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations.

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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