Segment and Related Information (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Segment Reporting Information, by Segment

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		Extrusions		Total
2022
Sales:
Third-party sales	$	7,313	$	1,245	$	409	$	8,967
Intersegment sales	44		—		2		46
Total sales	$	7,357	$	1,245	$	411	$	9,013
Segment Adjusted EBITDA	$	581	$	195	$	(47)	$	729
Provision for depreciation and amortization	$	190	$	17	$	18	$	225
2021
Sales:
Third-party sales	$	6,187	$	1,011	$	306	$	7,504
Intersegment sales	33		—		1		34
Total sales	$	6,220	$	1,011	$	307	$	7,538
Segment Adjusted EBITDA	$	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 sales	19		—		2		21
Total sales	$	4,354	$	963	$	383	$	5,700
Segment Adjusted EBITDA	$	527	$	137	$	(16)	$	648
Provision for depreciation and amortization	$	192	$	18	$	25	$	235


2022
Assets:
Segment assets(1)	$	4,308	$	474	$	312	$	5,094
Supplemental information:
Capital expenditures	194		18		16		228
Goodwill	224		68		—		292
2021
Assets:
Segment assets(2)	$	4,766	$	416	$	381	$	5,563
Supplemental information:
Capital expenditures	147		11		14		172
Goodwill	253		69		—		322

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(1)In the 2022 third quarter, the Extrusions segment recorded a $92 asset impairment charge comprised of $90 for Properties, plants, and equipment and $2 for intangible assets (included within Other noncurrent assets) (see Note E). Also, in November 2022, Arconic completed the sale of all of its operations in Russia (see Note S), which was previously reported in Rolled Products.

(2)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.

Reconciliation of Revenue from Segments to Consolidated

The following tables reconcile certain segment information to consolidated totals:


For the year ended December 31,	2022		2021		2020
Sales:
Total segment sales	$	9,013	$	7,538	$	5,700
Elimination of intersegment sales	(46)		(34)		(21)
Other	(6)		—		(4)
Consolidated sales	$	8,961	$	7,504	$	5,675

Reconciliation of Operating Profit (Loss) from Segments to Consolidated


For the year ended December 31,	2022		2021		2020
Total Segment Adjusted EBITDA	$	729	$	757	$	648
Unallocated amounts:
Corporate expenses(1)	(29)		(33)		(24)
Stock-based compensation expense (K)	(15)		(22)		(23)
Metal price lag(2)	17		(16)		(27)
Unrealized gains on mark-to-market hedging instruments and derivatives (U)	6		—		—
Provision for depreciation and amortization	(237)		(253)		(251)
Impairment of goodwill (B & O)	—		(65)		—
Restructuring and other charges(3),(4) (E)	(456)		(624)		(188)
Other(5)	(62)		(36)		(55)
Operating (loss) income	(47)		(292)		80
Interest expense (F)	(104)		(100)		(118)
Other expenses, net (G)	(41)		(67)		(70)
Benefit (Provision) for income taxes (I)	11		62		(1)
Net income attributable to noncontrolling interest	(1)		—		—
Consolidated net loss attributable to Arconic(1)	$	(182)	$	(397)	$	(109)

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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. 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).

(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 2022, Restructuring and other charges includes a loss of $306 related to the sale of the Company’s operations in Russia and a $92 asset impairment charge related to the Extrusions segment (see Note E).

(4)In 2022, 2021, and 2020, Restructuring and other charges include a $47, $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. In 2022, Other includes costs related to environmental remediation charges of $27 (see Environmental Matters in Note T) and costs related to the new labor agreement of $19 (see Note H). These charges were recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations.

Reconciliation of Assets from Segment to Consolidated


December 31,	2022		2021
Assets:
Total segment assets	$	5,094	$	5,563
Unallocated amounts:
Cash and cash equivalents	261		335
Prepaid expenses and other current assets	124		54
Fair value of hedging instruments and derivatives	21		1
Corporate fixed assets, net	135		153
Operating lease right-of-use assets	115		122
Deferred income taxes (I)	188		229
Other noncurrent assets	57		88
Other	20		35
Consolidated assets	$	6,015	$	6,580

Schedule of 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,	2022		2021		2020
Sales:
United States	$	5,972	$	4,753	$	3,697
Russia*	828		793		535
China	807		696		429
Hungary*	608		625		462
France	247		260		207
United Kingdom	245		169		144
Other	254		208		201
	$	8,961	$	7,504	$	5,675

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*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. Also, in November 2022, Arconic completed the sale of all of its operations in Russia (see Note S).

Geographic information for long-lived assets was as follows (based upon the physical location of the assets):


December 31,	2022		2021
Long-lived assets:
United States	$	1,943	$	1,998
China	208		242
Russia*	—		200
Hungary	99		98
United Kingdom	78		79
France	18		15
Other	15		19
	$	2,361	$	2,651

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*In November 2022, Arconic completed the sale of all of its operations in Russia (see Note S).