Debt |
3 Months Ended |
|---|---|
Mar. 31, 2023 | |
| Debt Disclosure [Abstract] | |
| Debt | Debt Arconic maintains a -year credit agreement, dated May 13, 2020, with a syndicate of lenders named therein and Deutsche Bank AG New York Branch as administrative agent (the “ABL Credit Agreement”). The ABL Credit Agreement provides for a $1,200 senior secured asset-based revolving credit facility (the “ABL Credit Facility”) to be used, generally, for working capital or other general corporate purposes. See Note Q to the Consolidated Financial Statements in Part II Item 8 of Arconic’s Annual Report on Form 10-K for the year ended December 31, 2022 (filed on February 21, 2023) for additional information related to the ABL Credit Agreement. In the 2023 first quarter, the Company borrowed $150 and repaid $100 under the ABL Credit Facility. These borrowings were designated as SOFR loans with an initial one-month interest period. Arconic may repay early or extend a part or all of these borrowings. In the 2023 first quarter, the weighted-average interest rate and weighted-average days outstanding of the borrowings was 6.5% and 30 days, respectively. In March 2022, the Company borrowed $100 under the ABL Credit Facility. This borrowing was designated as a SOFR loan with an initial three-month interest period. As of March 31, 2022, the applicable rate on this borrowing was 2.50%. Availability under the ABL Credit Facility is subject to a monthly borrowing base calculation, which, in general, is determined by applying a predetermined percentage to the amount of eligible accounts receivable and inventory, less customary reserves. As of March 31, 2023, the available balance was $1,134 (net of outstanding borrowings of $50 and letters of credit of $16).
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