v3.22.2.2

Restructuring and Other Charges | 9 Months Ended
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Sep. 30, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | Restructuring and Other Charges In the 2022 third quarter, Arconic recorded Restructuring and other charges of $112, which were comprised of the following components: a $92 asset impairment charge related to the Extrusions segment (see below); a $15 charge for the settlement of a certain employee retirement benefits (see Note G); and a net $5 charge for other items. In the 2022 nine-month period, Arconic recorded Restructuring and other charges of $119, which were comprised of the following components: a $92 asset impairment charge related to the Extrusions segment (see below); a $15 charge for the settlement of certain employee retirement benefits (see Note G); a $5 charge related to several legacy non-U.S. matters, including $1 for an environmental remediation obligation related to Italy (see Environmental Matters in Note P) and $1 for the full settlement of certain employee retirement benefits related to Brazil (see Note G); a $2 charge related to idling certain operations in the Extrusions segment (actions initiated in 2021); and a net $5 charge for other items. In the 2022 third quarter, management initiated a business review of the Extrusions segment aimed at identifying alternatives to improve the financial performance of this segment in future periods. Management continues to assess alternatives and no decisions or commitments were made as of September 30, 2022. In connection with this review, the Company updated its five-year strategic plan, the results of which indicated that there is an expected decline in the forecasted financial performance for the Extrusions segment (and asset group), including continued forecasted losses. As such, management evaluated the recoverability of the long-lived assets of the Extrusions asset group by comparing the aggregate carrying value to the undiscounted future cash flows. The result of this evaluation was that the long-lived assets were deemed to be impaired as the aggregate carrying value exceeded the undiscounted future cash flows. The impairment charge was measured as the difference between the aggregate carrying value and aggregate fair value of the long-lived assets. Fair value was determined using an orderly liquidation methodology for the machinery and equipment and a sales comparison approach for the land and structures. As a result, the Company recorded an impairment charge of $90 for Properties, plants, and equipment and $2 for intangible assets (included within Other noncurrent assets). In the 2021 third quarter Arconic recorded Restructuring and other charges of $14, which were comprised of the following components: a $5 charge for the settlement of certain employee retirement benefits (see Note G); a $3 charge related to several legal matters, including the assumption of a related environmental remediation obligation; a $3 charge related to idling certain operations in the Extrusions segment; a $3 charge for the settlement of legacy tax matters related to Brazil; a $1 charge for other items; and a $1 credit for the reversal of reserves established in prior periods. In the 2021 nine-month period, Arconic recorded Restructuring and other charges $612, which were comprised of the following components: a $573 charge for the settlement of certain employee retirement benefits (see Note G); a $34 charge for the impairment of several buildings and equipment due to management's decision to abandon these assets located at the Company’s primary research and development facility; a $6 charge related to idling certain operations in the Extrusions segment, including layoff costs associated with approximately 115 employees; a $4 net benefit for the settlement of legacy tax matters related to Brazil; a $3 charge related to several legal matters, including the assumption of a related environmental remediation obligation; a $3 credit for the reversal of reserves established in prior periods; a $1 additional loss on the sale of an aluminum rolling mill in Brazil; and a $2 net charge for other items. The Company does not include Restructuring and other charges in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows:
|  | Third quarter ended September 30, |  | Nine months ended September 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Rolled Products |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 1 |
Building and Construction Systems |  | 2 |  |  | — |  |  | 2 |  |  | (1) |
Extrusions |  | 88 |  |  | 3 |  |  | 90 |  |  | 6 |
Segment total |  | 91 |  |  | 3 |  |  | 93 |  |  | 6 |
Corporate |  | 21 |  |  | 11 |  |  | 26 |  |  | 606 |
|  | $ | 112 |  |  | $ | 14 |  |  | $ | 119 |  |  | $ | 612 |
Activity and reserve balances for restructuring charges were as follows:
| Layoff costs |  | Other costs |  | Total
Reserve balances at December 31, 2020 | $ | 13 |  |  | $ | 1 |  |  | $ | 14 |
Cash payments | (10) |  |  | (5) |  |  | (15) |
Restructuring charges | 3 |  |  | 6 |  |  | 9 |
Other(1) | (4) |  |  | (1) |  |  | (5) |
Reserve balances at December 31, 2021 | 2 |  |  | 1 |  |  | 3 |
Cash payments | (3) |  |  | (2) |  |  | (5) |
Restructuring charges | 2 |  |  | 2 |  |  | 4 |
Other(1) | — |  |  | (1) |  |  | (1) |
Reserve balances at September 30, 2022(2) | $ | 1 |  |  | $ | — |  |  | $ | 1 |
_____________________ (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 2022.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI https://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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