v3.23.1

Fair Value Measures and Disclosures (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The respective carrying value and fair value of Arconic’s financial instruments were as follows:

						March 31, 2023												December 31, 2022
						Carrying value						Fair value						Carrying value						Fair value
Cash and cash equivalents						$	197					$	197					$	261					$	261
Hedging instruments and derivatives - assets						7						7						21						21
Short-term debt						50						50						—						—
Hedging instruments and derivatives - liabilities						29						29						8						8
Long-term debt						1,597						1,595						1,597						1,539

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value and amount of underlying by type for all hedging instruments and derivatives:

						March 31, 2023															December 31, 2022
Assets
Cash flow hedges
Aluminum						$	—					2			kmt						$	—					17			kmt
Alloying materials*						(1)						1			kmt						(1)						1			kmt
Marked-to-market
Aluminum						4						137			kmt						6						60			kmt
Energy						4						5.9			MMBtu						16						12.1			MMBtu
						$	7														$	21
Liabilities
Cash flow hedges
Aluminum*						$	(7)					337			kmt						$	(14)					368			kmt
Energy						14						2.3			MMBtu						5						6.3			MMBtu
Alloying materials						—						2			kmt						1						3			kmt
Marked-to-market
Aluminum						15						113			kmt						12						53			kmt
Energy						7						3.8			MMBtu						4						0.6			MMBtu
						$	29														$	8

__________________

*The hedging instruments are classified as assets or liabilities based on the overall position of all instruments held with respective counterparties.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the unrealized and realized gains and losses associated with those hedging instruments designated as cash flow hedges:

First quarter ended March 31,						2023						2022
Unrealized
Other comprehensive loss
Aluminum						$	(9)					$	(156)
Energy						(13)						13
Alloying materials						1						—
						$	(21)					$	(143)
Realized*
Sales
Aluminum						$	(1)					$	(54)
Cost of goods sold
Aluminum						—						(1)
Energy						5						—
						$	(6)					$	(53)

__________________

*In all periods presented, these amounts were reclassified from Accumulated other comprehensive loss (see Note K).

Derivative Instruments, Gain (Loss)

The following table presents the unrealized and realized gains and losses associated with those hedging instruments that do not qualify for hedge accounting and derivatives:

First quarter ended March 31,						2023						2022
Unrealized
Sales
Aluminum						$	(5)					$	2
Cost of goods sold
Energy*						15						(3)
						$	(20)					$	5
Realized
Sales
Aluminum						$	4					$	(2)
Cost of goods sold
Energy						1						—
						$	3					$	(2)

__________________

*In the 2022 first quarter, the Company recorded a net gain of $3 in Cost of goods sold related to the unrealized impact associated with the change in the estimated fair value of natural gas supply contracts determined to be derivatives. This amount was comprised of an unrealized loss of $5 for the 2022 first quarter, an unrealized gain of $6 for the 2021 annual period, and an unrealized gain of $2 for the 2020 fourth quarter. The out-of-period amounts were not material to any interim or annual period.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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Tabular disclosure for cash flow hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

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