v3.23.2

Fair Value Measures and Disclosures (Tables)

6 Months Ended

Jun. 30, 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:

						June 30, 2023												December 31, 2022
						Carrying value						Fair value						Carrying value						Fair value
Cash and cash equivalents						$	266					$	266					$	261					$	261
Hedging instruments and derivatives - assets						53						53						21						21
Hedging instruments and derivatives - liabilities						14						14						8						8
Long-term debt						1,598						1,620						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:

						June 30, 2023															December 31, 2022
Assets
Cash flow hedges
Aluminum						$	48					242			kmt						$	—					17			kmt
Alloying materials*						(1)						1			kmt						(1)						1			kmt
Marked-to-market
Aluminum						9						33			kmt						6						60			kmt
Energy						(3)						4.7			MMBtu						16						12.1			MMBtu
						$	53														$	21
Liabilities
Cash flow hedges
Aluminum*						$	—					29			kmt						$	(14)					368			kmt
Energy						9						7.5			MMBtu						5						6.3			MMBtu
Alloying materials						1						6			kmt						1						3			kmt
Marked-to-market
Aluminum						2						1			kmt						12						53			kmt
Energy
Natural Gas						2						2.7			MMBtu						4						0.6			MMBtu
Electricity						—						8,314			MWh						—
						$	14														$	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:

						Second quarter ended June 30,												Six months ended June 30,
						2023						2022						2023						2022
Unrealized
Other comprehensive income (loss)
Aluminum						$	58					$	203					$	49					$	47
Energy						(1)						—						(14)						13
Alloying materials						(2)						(2)						(1)						(2)
						$	55					$	201					$	34					$	58
Realized*
Sales
Aluminum						$	18					$	(53)					$	17					$	(107)
Cost of goods sold
Aluminum						—						—						—						(1)
Energy						6						(7)						11						(7)
Alloying materials						1						—						1						—
						$	11					$	(46)					$	5					$	(99)

__________________

*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:

						Second quarter ended June 30,												Six months ended June 30,
						2023						2022						2023						2022
Unrealized
Sales
Aluminum						$	19					$	4					$	14					$	6
Cost of goods sold
Energy*						1						(20)						16						(23)
						$	18					$	24					$	(2)					$	29
Realized
Sales
Aluminum						$	(10)					$	4					$	(6)					$	2
Cost of goods sold
Energy						4						—						5						—
						$	(14)					$	4					$	(11)					$	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.

X

- 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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-11

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C

+ Details

Name:	us-gaap_ScheduleOfCashFlowHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4E
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4E

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4A

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration