Segment and Related Information (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Segment Reporting Information, by Segment

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):


Third quarter ended September 30,	Rolled Products		Building and Construction Systems		Extrusions		Total
2022
Sales:
Third-party sales	$	1,861	$	321	$	98	$	2,280
Intersegment sales	10		—		—		10
Total sales	$	1,871	$	321	$	98	$	2,290
Segment Adjusted EBITDA	$	111	$	49	$	(13)	$	147
Provision for depreciation and amortization	$	48	$	4	$	5	$	57
2021
Sales:
Third-party sales	$	1,559	$	257	$	74	$	1,890
Intersegment sales	9		—		1		10
Total sales	$	1,568	$	257	$	75	$	1,900
Segment Adjusted EBITDA	$	155	$	34	$	(7)	$	182
Provision for depreciation and amortization	$	48	$	4	$	6	$	58


Nine months ended September 30,	Rolled Products		Building and Construction Systems		Extrusions		Total
2022
Sales:
Third-party sales	$	5,778	$	941	$	300	$	7,019
Intersegment sales	33		—		1		34
Total sales	$	5,811	$	941	$	301	$	7,053
Segment Adjusted EBITDA	$	461	$	146	$	(30)	$	577
Provision for depreciation and amortization	$	145	$	13	$	15	$	173
2021
Sales:
Third-party sales	$	4,397	$	750	$	219	$	5,366
Intersegment sales	26		—		1		27
Total sales	$	4,423	$	750	$	220	$	5,393
Segment Adjusted EBITDA	$	493	$	97	$	(19)	$	571
Provision for depreciation and amortization	$	145	$	13	$	17	$	175

The following table reconciles total Segment Adjusted EBITDA to consolidated net (loss) income attributable to Arconic Corporation:


	Third quarter ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Total Segment Adjusted EBITDA	$	147	$	182	$	577	$	571
Unallocated amounts:
Corporate expenses(1)	(4)		(7)		(23)		(26)
Stock-based compensation expense	(6)		(8)		(19)		(15)
Metal price lag(2)	15		(21)		9		(27)
Unrealized (losses) gains on mark-to-market hedging instruments and derivatives (Q)	(7)		—		16		—
Provision for depreciation and amortization	(59)		(61)		(181)		(186)
Restructuring and other charges(3) (E)	(112)		(14)		(119)		(612)
Other(4)	(10)		(3)		(56)		(19)
Operating (loss) income	(36)		68		204		(314)
Interest expense	(27)		(26)		(78)		(74)
Other expenses, net (F)	(27)		(15)		(9)		(52)
Benefit (Provision) for income taxes (H)	25		(11)		(25)		81
Net income attributable to noncontrolling interest	—		—		(1)		—
Consolidated net (loss) income attributable to Arconic Corporation	$	(65)	$	16	$	91	$	(359)

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(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)In the 2022 third quarter and nine-month period, Restructuring and other charges includes a $92 asset impairment charge related to the Extrusions segment (see Note E).

(4)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 third quarter and nine-month period, the respective amounts include costs related to environmental remediation charges of $9 and $18, respectively (see Environmental Matters in Note P). Additionally in the 2022 nine-month period, Other includes costs related to the new union labor agreement of $19 (see Note G). These charges were recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations.