v3.23.2
Segment and Related Information​
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment and Related Information​ Segment and Related Information
Arconic’s profit or loss measure for its reportable segments is Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization). The Company calculates Segment Adjusted EBITDA as Total sales (third-party and intersegment) minus each of (i) Cost of goods sold, (ii) Selling, general administrative, and other expenses, and (iii) Research and development expenses, plus each of (i) Stock-based compensation expense, (ii) Metal price lag, and (iii) Unrealized (gains) losses on mark-to-market hedging instruments and derivatives. Arconic’s Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies’ reportable segments.
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):
Second quarter ended June 30,Rolled
Products		Building and
Construction
Systems		ExtrusionsTotal
2023
Sales:
Third-party sales$1,529 $319 $125 $1,973 
Intersegment sales8 — 5 13 
Total sales$1,537 $319 $130 $1,986 
Segment Adjusted EBITDA$158 $53 $(1)$210 
Provision for depreciation and amortization$42 $4 $4 $50 
2022
Sales:
Third-party sales*
$2,113 $329 $105 $2,547 
Intersegment sales11 — — 11 
Total sales$2,124 $329 $105 $2,558 
Segment Adjusted EBITDA*
$174 $53 $(12)$215 
Provision for depreciation and amortization$49 $5 $6 $60 
Six months ended June 30,Rolled
Products		Building and
Construction
Systems		ExtrusionsTotal
2023
Sales:
Third-party sales$3,033 $627 $245 $3,905 
Intersegment sales19 — 5 24 
Total sales$3,052 $627 $250 $3,929 
Segment Adjusted EBITDA$275 $107 $(5)377 
Provision for depreciation and amortization$84 $8 $7 $99 
2022
Sales:
Third-party sales*
$3,917 $620 $202 $4,739 
Intersegment sales23 — 1 24 
Total sales$3,940 $620 $203 $4,763 
Segment Adjusted EBITDA*
$350 $97 $(17)$430 
Provision for depreciation and amortization$97 $9 $10 $116 
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*    In November 2022, Arconic completed the sale of all of its operations in Russia (see Note O), the results of which were previously reported in the Company’s Rolled Products segment. In the 2022 second quarter and six-month period, Third-
party sales and Segment Adjusted EBITDA for the Rolled Products segment included $314 and $24, respectively, and $547 and $42, respectively, related to these former operations.
The following table reconciles total Segment Adjusted EBITDA to consolidated net income attributable to Arconic Corporation:
Second quarter ended June 30,Six months ended June 30,
2023202220232022
Total Segment Adjusted EBITDA$210 $215 $377 $430 
Unallocated amounts:
Corporate expenses(1)
(11)(10)(20)(19)
Stock-based compensation expense(12)(8)(18)(13)
Metal price lag(2)
(20)30 (20)(6)
Unrealized gains (losses) on mark-to-market hedging instruments and derivatives (Q)
18 21 (2)23 
Provision for depreciation and amortization(52)(62)(105)(122)
Restructuring and other charges(3) (E)
(9)(2)(9)(7)
Other(4)
(7)(40)(15)(46)
Operating income117 144 188 240 
Interest expense(25)(26)(50)(51)
Other (expenses) income, net (F)
(16)35 (27)18 
Provision for income taxes (H)
(17)(38)(27)(50)
Net income attributable to noncontrolling interest (O)
— (1)— (1)
Consolidated net income attributable to Arconic Corporation$59 $114 $84 $156 
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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 2023 second quarter and six-month period, Restructuring and other charges includes $11 for costs incurred related to the Transaction (see Note A and 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 second quarter and six-month period, the respective amounts include costs related to a new union labor agreement of $19 (see Note G) and environmental remediation charges of $9, both of which were recorded in Cost of goods sold on the accompanying Statement of Consolidated Operations.