| Filed by the Registrant ☒ | | | Filed by a party other than the Registrant ☐ | | | | |
Sincerely, | |||||
John C. Plant | Chairman and Chief Executive Officer |
| | | Cleveland, OH 44105 | |
| Letter to our Shareholders | | | | |
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| Attachments | | | | | ||||
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| | | Arconic Inc. Peer Group Companies for Market Information for | | | | | ||
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| Time and Date: | | | | |
| Place: | | | | |
| Record Date: | | | March | |
| Webcast: | | | A live webcast of the meeting will be available from our website at http://www.arconic.com under “Investors—Annual Meeting.” | |
| Voting: | | | Shareholders as of the record date are entitled to vote. Each share of common stock is entitled to one vote on all matters to be voted on. As of March | |
| Admission: | | | An admission ticket is required to enter Arconic’s annual meeting. See Question 3 in the “Questions and Answers About the Meeting and Voting” section regarding how to obtain a ticket. Only shareholders and authorized guests of the Company may attend the meeting and all attendees will be required to show a valid form of ID (such as a government-issued form of photo identification). If you hold your shares in street-name (i.e., through a bank or broker), you must also provide proof of share ownership, such as a letter from your bank or broker or a recent brokerage statement. | |
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| Internet at www.cesvote.com | | | calling 1-888-693-8683 toll-free from the U.S. or Canada | | | mail return the signed proxy card | |
| Voting Matters | | | | Unanimous Board Recommendation | | | | Page Reference (for more detail) | | |||
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| Name | | | | Age | | | | Director Since | | | | Professional Background | | | | Independent | | | | Committee Memberships | | | | Other Current Public Company Boards | | |||
| James F. Albaugh | | | | 68 | | | | | | 2017 | | | | | Former President and Chief Executive Officer of Commercial Airplanes, The Boeing Company; Former President and Chief Executive Officer of Integrated Defense Systems, The Boeing Company | | | | Yes | | | | Compensation and Benefits; Governance and Nominating | | | | American Airlines Group Inc.; GS Acquisition Holdings Corp; Harris Corporation | |
| Amy E. Alving | | | | 56 | | | | | | 2018 | | | | | Former Senior Vice President and Chief Technology Officer, Leidos Holdings, Inc. | | | | Yes | | | | Compensation and Benefits; Cybersecurity Advisory Subcommittee (Chair); Governance and Nominating | | | | DXC Technology Company; Federal National Mortgage Association (Fannie Mae) | |
| Christopher L. Ayers | | | | 52 | | | | | | 2017 | | | | | Former President and Chief Executive Officer, WireCo WorldGroup, Inc. | | | | Yes | | | | Audit; Finance | | | | Universal Stainless & Alloy Products, Inc. | |
| Elmer L. Doty | | | | 64 | | | | | | 2017 | | | | | President and Chief Operating Officer, Arconic Inc. | | | | No | | | | — | | | | — | |
| Rajiv L. Gupta | | | | 73 | | | | | | 2016 | | | | | Chairman, Aptiv PLC; Chairman, Avantor Inc.; Former Chairman and Chief Executive Officer, Rohm and Haas Company | | | | Yes | | | | Compensation and Benefits (Chair); Governance and Nominating | | | | Aptiv PLC (Chairman) | |
| Sean O. Mahoney | | | | 56 | | | | | | 2016 | | | | | Private Investor; Former Vice Chairman for Global Banking, Deutsche Bank Securities; Former Partner and Head of the Financial Sponsors Group, Goldman, Sachs & Co. | | | | Yes | | | | Audit; Finance (Chair) | | | | Aptiv PLC | |
| David J. Miller | | | | 40 | | | | | | 2017 | | | | | Equity Partner, Senior Portfolio Manager and Head of U.S. Restructuring, Elliott Management Corporation | | | | Yes | | | | Finance | | | | — | |
| E. Stanley O’Neal | | | | 67 | | | | | | 2008 | | | | | Former Chairman and Chief Executive Officer, Merrill Lynch & Co., Inc. | | | | Yes | | | | Audit; Finance | | | | Clearway Energy, Inc.; Platform Specialty Products Corporation | |
| Name | | | | Age | | | | Director Since | | | | Professional Background | | | | Independent | | | | Committee Memberships | | | | Other Current Public Company Boards | | |||
| John C. Plant | | | | 65 | | | | | | 2016 | | | | | Chairman and Chief Executive Officer, Arconic Inc. | | | | No | | | | — | | | | Gates Industrial Corporation PLC; Jabil Circuit Corporation; Masco Corporation | |
| Ulrich R. Schmidt | | | | 69 | | | | | | 2016 | | | | | Former Executive Vice President and Chief Financial Officer, Spirit Aerosystems Holdings, Inc. | | | | Yes | | | | Audit (Chair); Finance | | | | — | |
| WHAT WE DO | | | | WHAT WE DON’T DO | |
| ✓ Pay for Performance ✓ Cancellation of Unvested Equity Awards Upon Termination of Employment, Other Than in Very Limited Circumstances ✓ Robust Stock Ownership Guidelines ✓ Double-Trigger Change-in-Control Provisions ✓ Active Engagement with Investors ✓ Independent Compensation Consultant ✓ Conservative Risk Profile ✓ Claw-Back Policy | | | | ✗ No Guaranteed Annual Bonuses ✗ No Parachute Tax Gross-Ups ✗ No Short Sales, Derivative Transactions or Hedging of Company Stock ✗ No Dividends on Unvested Equity Awards ✗ No Share Recycling or Option Repricing ✗ No Significant Perquisites | |
| Name | | | | Albaugh | | | | Alving | | | | Ayers | | | | Blankenship | | | | Collins | | | | Doty | | | | Gupta | | | | Hess | | | | Mahoney | | | | Miller | | | | O’Neal | | | | Plant | | | | Schmidt | | |||||||||||||||||||||||||||||||||||||||
| Year of Joining Board | | | | 2017 | | | | 2018 nominee | | | | 2017 | | | | 2018 | | | | 2010 | | | | 2017 | | | | 2016 | | | | 2017 | | | | 2016 | | | | 2017 | | | | 2008 | | | | 2016 | | | | 2016 | | |||||||||||||||||||||||||||||||||||||||
| Experience | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Finance | | | | | | ✓ | | | | | | | | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Industry | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| International | | | | | | ✓ | | | | | | | | | | | | | | | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Leadership | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Public Company Board | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Risk Management | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Technology | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ✓ | | |
| Name | | | | Albaugh | | | | Alving | | | | Ayers | | | | Doty | | | | Gupta | | | | Mahoney | | | | Miller | | | | O’Neal | | | | Plant | | | | Schmidt | | ||||||||||||||||||||||||||||||
| Year of Joining Board | | | | 2017 | | | | 2018 | | | | 2017 | | | | 2017 | | | | 2016 | | | | 2016 | | | | 2017 | | | | 2008 | | | | 2016 | | | | 2016 | | ||||||||||||||||||||||||||||||
| Experience | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Finance | | | | | | ✓ | | | | | | | | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Industry | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| International | | | | | | ✓ | | | | | | | | | | | | | | | | | | | | | ✓ | | | | | | | ✓ | | | | | | | | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Leadership | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Public Company Board | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Risk Management | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | |
| Technology | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | ✓ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | James F. Albaugh | | |
| Director since: 2017 Age: Committees: Other Current Public Directorships: American Airlines Group Inc.; GS Acquisition Holdings Corp; Harris Corporation | |
| | | Amy E. Alving | | |
| Director Age: Committees: Compensation and Benefits Committee; Cybersecurity Advisory Subcommittee (Chair); Governance and Nominating Committee Other Current Public Directorships: DXC Technology Company; Federal National Mortgage Association (Fannie Mae) | |
| | | Christopher L. Ayers | | |
| Director since: 2017 Age: Committees: Audit Committee; Finance Committee Other Current Public Directorships: Universal Stainless & Alloy Products, Inc. | |
| |||||
| | Elmer L. Doty | | ||
| Director since: 2017 Age: | |
| | | Rajiv L. Gupta | | |
| Director since: 2016 Age: Committees: Compensation and Benefits Other Current Public Directorships: Aptiv PLC (Chairman) | |
| |||||
| | Sean O. Mahoney | | ||
| Director since: 2016 Age: Committees: Audit Committee; Finance Committee (Chair) Other Current Public Directorships: Aptiv | |
| | | David J. Miller | | |
| Director since: 2017 Age: Committees: Finance Committee | |
| | | E. Stanley O’Neal | | |
| Director since: 2008 Age: Committees: Audit Committee; Finance Committee Other Current Public Directorships: Clearway Energy, Inc.; Platform Specialty Products Corporation | |
| | | John C. Plant | | |
| Director since: 2016 Age: Other Current Public Directorships: Gates Industrial Corporation PLC; Jabil Circuit Corporation; Masco Corporation | |
| | | Ulrich R. Schmidt | | |
| Director since: 2016 Age: Committees: Audit Committee (Chair); Finance Committee | |
| Compensation Element | | | | 2017 | | | | 2018 | | | | Effective Date of Change | |
| Annual Cash Retainer | | | | $120,000 | | | | $120,000 | | | | N/A | |
| Annual Equity Award (Restricted Share Units Granted Following Each Annual Meeting of Shareholders) | | | | $120,000 | | | | $150,000 | | | | Upon annual grant in May 2018 | |
| Other Annual Fees1: | | | | | | | | | | | | | |
| • Board Chair Fee | | | | Increased from $200,000 to $300,000 in October 2017 | | | | $300,000 | | | | October 23, 2017 | |
| • Lead Director Fee2 | | | | $25,000 | | | | N/A | | | | N/A | |
| • Audit Committee Chair Fee (includes Audit Committee Member Fee) | | | | $27,500 | | | | $27,500 | | | | N/A | |
| • Audit Committee Member Fee | | | | $11,000 | | | | $11,000 | | | | N/A | |
| • Compensation and Benefits Committee Chair Fee | | | | $20,000 | | | | $20,000 | | | | N/A | |
| • Other Committee Chair Fee | | | | $16,500 | | | | $16,500 | | | | N/A | |
| Per Meeting Fee for Meetings in Excess of Regularly Scheduled Meetings | | | | None | | | | $1,5003 | | | | January 1, 2018 | |
| Compensation Element | | | | 2018 Amount | | | | 2019 Amount | |
| Annual Cash Retainer | | | | $120,000 | | | | $120,000 | |
| Annual Equity Award (Restricted Share Units Granted Following Each Annual Meeting of Shareholders) | | | | $150,000 | | | | $150,000 | |
| Other Annual Fees1: | | | | | | | | | |
| • Non-Executive Board Chair Fee | | | | $300,000 | | | | N/A2 | |
| • Lead Director Fee | | | | N/A2 | | | | $40,0002 | |
| • Audit Committee Chair Fee (includes Audit Committee Member Fee) | | | | $27,500 | | | | $27,500 | |
| • Audit Committee Member Fee | | | | $11,000 | | | | $11,000 | |
| • Compensation and Benefits Committee Chair Fee | | | | $20,000 | | | | $20,000 | |
| • Other Committee Chair Fee | | | | $16,500 | | | | $16,500 | |
| Per Meeting Fee for Meetings in Excess of Regularly Scheduled Meetings | | | | $1,5003 | | | | $1,5003 | |
| Ownership Requirements and Annual Compensation Limits | | | | 2017 | | | | 2018 | | | | Effective Date of Change | |
| Stock Ownership Requirement | | | | $750,000 | | | | $750,000 | | | | N/A | |
| Timeline to Achieve Stock Ownership | | | | None/6 years4 | | | | 6 years | | | | December 5, 2017 | |
| Total Annual Director Compensation Limit | | | | None/$750,0005 | | | | $750,000 | | | | December 5, 2017 | |
| Ownership Requirements and Annual Compensation Limits | | | | 2018 Amount | | | | 2019 Amount | |
| Stock Ownership Requirement | | | | $750,000 | | | | $750,000 | |
| Timeline to Achieve Stock Ownership | | | | 6 years | | | | 6 years | |
| Total Annual Director Compensation Limit | | | | $750,000 | | | | $750,000 | |
| Non-Employee Directors | | | | Director Since | | | | Value of Holdings in Arconic Stock, Deferred Share Units and Deferred Restricted Share Units | | Directors | | | | Director Since | | | | Value of Holdings in Arconic Stock, Deferred Share Units and Deferred Restricted Share Units | | ||||||||||||
| James F. Albaugh | | | | | | 2017 | | | | | | $ | 228,074 | | | James F. Albaugh | | | | | | 2017 | | | | | | $ | 336,218 | | |
| Christopher L. Ayers | | | | | | 2017 | | | | | | $ | 340,766 | | | Amy E. Alving | | | | | | 2018 | | | | | | $ | 256,536 | | |
| Arthur D. Collins, Jr. | | | | | | 2010 | | | | | | $ | 2,335,839 | | | Christopher L. Ayers | | | | | | 2017 | | | | | | $ | 568,997 | | |
| Elmer L. Doty | | | | | | 2017 | | | | | | $ | 252,314 | | | Arthur D. Collins, Jr. | | | | | | 2010 | | | | | | $ | 2,148,794 | | |
| Rajiv L. Gupta | | | | | | 2016 | | | | | | $ | 182,309 | | | Elmer L. Doty | | | | | | 2017 | | | | | | $ | 7,666,358 | | |
| David P. Hess | | | | | | 2017 | | | | | | $ | 4,268,834 | | | Rajiv L. Gupta | | | | | | 2016 | | | | | | $ | 300,365 | | |
| Sean O. Mahoney | | | | | | 2016 | | | | | | $ | 359,261 | | | David P. Hess | | | | | | 2017 | | | | | | $ | 3,331,701 | | |
| David J. Miller | | | | | | 2017 | | | | | | $ | 45,765 | | | Sean O. Mahoney | | | | | | 2016 | | | | | | $ | 600,654 | | |
| E. Stanley O’Neal | | | | | | 2008 | | | | | | $ | 1,422,936 | | | David J. Miller | | | | | | 2017 | | | | | | $ | 193,394 | | |
| John C. Plant | | | | | | 2016 | | | | | | $ | 641,100 | | | E. Stanley O’Neal | | | | | | 2008 | | | | | | $ | 1,425,788 | | |
| Patricia F. Russo | | | | | | 2008 | | | | | | $ | 1,424,754 | | | John C. Plant | | | | | | 2016 | | | | | | $ | 23,773,885 | | |
| Ulrich R. Schmidt | | | | | | 2016 | | | | | | $ | 345,687 | | | Ulrich R. Schmidt | | | | | | 2016 | | | | | | $ | 467,154 | | |
| Name1 (a) | | | | Fees Earned or Paid in Cash ($)(b)2 | | | | Stock Awards ($)(c)3 | | | | All Other Compensation ($)(g) | | | | Total ($)(h) | | Name1 (a) | | | | Fees Earned or Paid in Cash ($)(b)2 | | | | Stock Awards ($)(c)3 | | | | All Other Compensation ($)(g) | | | | Total ($)(h) | | ||||||||||||||||||||||||
| James F. Albaugh4 | | | | | $ | 78,247 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 198,260 | | | James F. Albaugh4 | | | | | $ | 140,500 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 290,492 | | |
| Amy E. Alving5 | | | | | $ | 52,470 | | | | | | | — | | | | | | | — | | | | | | $ | 52,470 | | | Amy E. Alving5 | | | | | $ | 97,161 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 247,153 | | |
| Christopher L. Ayers6 | | | | | $ | 72,258 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 192,271 | | | Christopher L. Ayers6 | | | | | $ | 149,000 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 298,992 | | |
| Arthur D. Collins, Jr.7 | | | | | $ | 140,000 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 260,013 | | | Arthur D. Collins, Jr.7 | | | | | $ | 155,000 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 304,992 | | |
| Elmer L. Doty8 | | | | | $ | 72,258 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 192,271 | | | Elmer L. Doty8 | | | | | $ | 133,500 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 283,492 | | |
| Rajiv L. Gupta9 | | | | | $ | 120,000 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 240,013 | | | Rajiv L. Gupta9 | | | | | $ | 144,000 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 293,992 | | |
| Sean O. Mahoney10 | | | | | $ | 146,125 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 266,138 | | | David P. Hess10 | | | | | $ | 144,070 | | | | | | $ | 192,746 | | | | | | | — | | | | | | $ | 336,816 | | |
| Patrice E. Merrin11 | | | | | $ | 68,387 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 188,400 | | | Sean O. Mahoney11 | | | | | $ | 165,500 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 315,492 | | |
| David J. Miller12 | | | | | $ | 4,194 | | | | | | $ | 51,618 | | | | | | | — | | | | | | $ | 55,812 | | | David J. Miller12 | | | | | $ | 132,000 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 281,992 | | |
| E. Stanley O’Neal13 | | | | | $ | 131,000 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 251,013 | | | E. Stanley O’Neal13 | | | | | $ | 147,500 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 297,492 | | |
| John C. Plant14 | | | | | $ | 152,466 | | | | | | $ | 249,993 | | | | | | | — | | | | | | $ | 402,459 | | | John C. Plant14 | | | | | $ | 316,835 | | | | | | $ | 279,983 | | | | | | | — | | | | | | $ | 596,818 | | |
| L. Rafael Reif15 | | | | | $ | 48,065 | | | | | | | — | | | | | | | — | | | | | | $ | 48,065 | | | Julie G. Richardson15 | | | | | $ | 16,765 | | | | | | | — | | | | | | | — | | | | | | $ | 16,765 | | |
| Julie G. Richardson16 | | | | | $ | 131,000 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 251,013 | | | Patricia F. Russo16 | | | | | $ | 55,871 | | | | | | | — | | | | | | | — | | | | | | $ | 55,871 | | |
| Patricia F. Russo17 | | | | | $ | 251,803 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 371,816 | | | Ulrich R. Schmidt17 | | | | | $ | 165,500 | | | | | | $ | 149,992 | | | | | | | — | | | | | | $ | 315,492 | | |
| Ulrich R. Schmidt18 | | | | | $ | 147,500 | | | | | | $ | 120,013 | | | | | | | — | | | | | | $ | 267,513 | | | ||||||||||||||||||||||||||||||
| Martin S. Sorrell19 | | | | | $ | 30,000 | | | | | | | — | | | | | | | — | | | | | | $ | 30,000 | | | ||||||||||||||||||||||||||||||
| Ratan N. Tata20 | | | | | $ | 40,645 | | | | | | | — | | | | | | $ | 6,097 | | | | | | $ | 46,742 | | |
| Our substantial responsibilities. | | | Our • • Responds directly to shareholder and other stakeholder questions and comments that are directed to the • • Ensures personal availability for consultation and • • Calls special meetings of the independent directors, as the • | |
| Shareholders’ interests are protected by effective and independent oversight of management: • • • Our independent directors meet at every regular meeting in executive session without management or the Chairman and Chief Executive Officer or the President and Chief Operating Officer present. These meetings are led by the | | | The Company’s corporate governance practices and policies are designed to protect shareholders’ long-term interests. | |
| • Leadership Experience • International Experience • Finance and Capital Allocation Experience • Automotive Industry Experience | | | • Aerospace Industry Experience • Risk Management Expertise • Manufacturing/Industrial Experience • Defense Industry Experience | | | • Technology/Innovation Expertise • Corporate Governance Expertise • Engineering • Information Technology Experience | |
| | | | | Audit | | | | Cybersecurity Advisory Committee of the Audit Committee | | | | Compensation and Benefits | | | | Finance | | | | Governance and Nominating | | | | | | Audit | | | | Cybersecurity Advisory Committee of the Audit Committee | | | | Compensation and Benefits | | | | Finance | | | | Governance and Nominating | |
| James F. Albaugh* | | | | X | | | | Chair | | | | | | | | | | | | | | James F. Albaugh* | | | | | | | | | | | | X | | | | | | | | X | |
| Christopher L. Ayers* | | | | X | | | | | | | | | | | | X | | | | | | Amy E. Alving* | | | | | | | | Chair | | | | X | | | | | | | | X | |
| Charles “Chip” Blankenship | | | | | | | | | | | | | | | | | | | | | | Christopher L. Ayers* | | | | X | | | | | | | | | | | | X | | | | | |
| Arthur D. Collins, Jr.* | | | | | | | | | | | | Chair | | | | | | | | X | | Arthur D. Collins, Jr.* | | | | | | | | | | | | X | | | | | | | | Chair | |
| Elmer L. Doty* | | | | | | | | | | | | X | | | | | | | | X | | Elmer L. Doty | | | | | | | | | | | | | | | | | | | | | |
| Rajiv L. Gupta* | | | | | | | | | | | | X | | | | | | | | X | | Rajiv L. Gupta* | | | | | | | | | | | | Chair | | | | | | | | X | |
| David P. Hess* | | | | X | | | | | | | | | | | | X | | | | | | David P. Hess* | | | | X | | | | | | | | | | | | X | | | | | |
| Sean O. Mahoney* | | | | X | | | | | | | | | | | | Chair | | | | | | Sean O. Mahoney* | | | | X | | | | | | | | | | | | Chair | | | | | |
| David J. Miller* | | | | | | | | | | | | | | | | X | | | | | | David J. Miller* | | | | | | | | | | | | | | | | X | | | | ||
| E. Stanley O’Neal* | | | | X | | | | | | | | | | | | X | | | | | | E. Stanley O’Neal* | | | | X | | | | | | | | | | | | X | | | | | |
| John C. Plant* | | | | | | | | | | | | X | | | | | | | | X | | John C. Plant | | | | | | | | | | | | | | | | | | | | | |
| Patricia F. Russo* | | | | | | | | | | | | X | | | | | | | | Chair | | Ulrich R. Schmidt* | | | | Chair | | | | | | | | | | | | X | | | | | |
| Ulrich R. Schmidt* | | | | Chair | | | | | | | | | | | | X | | | | | | 2018 Committee Meetings1 | | | | 8 | | | | 4 | | | | 6 | | | | 9 | | | | 7 | |
| 2017 Meetings | | | | 7 | | | | 3 | | | | 7 | | | | 11 | | | | 8 | |
| | COMMITTEE | | | RESPONSIBILITIES | | |
| | Audit Committee | | | • Oversees the integrity of the financial statements and internal controls, including review of the scope and the results of the audits of the internal and independent auditors • Appoints the independent auditors and evaluates their independence and performance • Reviews the organization, performance and adequacy of the internal audit function • Pre-approves all audit, audit-related, tax and other services to be provided by the independent auditors • Oversees the Company’s compliance with legal, ethical and regulatory requirements • Discusses with management and the auditors the policies with respect to risk assessment and risk management, including major financial risk exposures | | |
| | Each member of the Audit Committee is financially literate, and the Board of Directors has determined that each member qualifies as an “audit committee financial expert” under applicable SEC rules. | | | |||
| | Cybersecurity Advisory Subcommittee | | | • Assists the Audit Committee in regularly reviewing the state of the Company’s cybersecurity • Regularly brings cybersecurity developments or issues to the attention of the Audit Committee and the Board | | |
| | Compensation and Benefits Committee | | | • Establishes the Chief Executive Officer’s compensation for Board ratification, based upon an evaluation of performance in light of approved goals and objectives • Reviews and approves the compensation of the Company’s officers • Oversees the implementation and administration of the Company’s compensation and benefits plans, including pension, savings, incentive compensation and equity-based plans • Reviews and approves general compensation and benefit policies • Approves the Compensation Discussion and Analysis for inclusion in the proxy statement • Has the sole authority to retain and terminate a compensation consultant, as well as to approve the consultant’s fees and other terms of engagement (see “ | | |
| | The Compensation and Benefits Committee may form and delegate its authority to subcommittees, including subcommittees of management when appropriate. Executive officers do not determine the amount or form of executive or director compensation although the Chief Executive Officer provides recommendations to the Compensation and Benefits Committee regarding compensation changes and incentive compensation for executive officers other than himself. For more information on the responsibilities and activities of the committee, including its processes for determining executive compensation, see the “ | | | |||
| | Finance Committee | | | Reviews and provides advice and counsel to the Board regarding the Company’s: • capital structure; • financing transactions; • capital expenditures and capital plan; • acquisitions and divestitures; • share repurchase and dividend programs; • policies relating to interest rate, commodity and currency hedging; and • employee retirement | | |
| | Governance and Nominating Committee | | | • Identifies individuals qualified to become Board members and recommends them to the full Board for consideration, including evaluating all potential candidates, whether initially recommended by management, other Board members or shareholders • • Makes recommendations to the Board regarding Board committee assignments • Develops and annually reviews corporate governance guidelines for the Company, and oversees other corporate governance matters • Reviews related person transactions • Oversees an annual performance review of the Board, Board committees and individual director nominees • Periodically reviews and makes recommendations to the Board regarding director compensation | | |
| Name and Address of Beneficial Owner | | | | Title of Class | | | | Amount and Nature of Beneficial Ownership (#) | | | | Percent of Class1 | | |||
| Elliott Associates, L.P. c/o Elliott Management Corporation 40 West 57th Street New York, NY 10019 | | | | Common Stock | | | | | | 51,102,133 | | | | | | |
| Elliott International, L.P. c/o Maples & Calder P.O. Box 309 Ugland House, South Church Street George Town Cayman Islands, British West Indies | | | | | | | | | | | | | | | | |
| Elliott International Capital Advisors Inc. 40 West 57th Street New York, NY 10019 | | | | | | | | | | | | | | | | |
| The Vanguard Group 100 Vanguard Boulevard Malvern, PA 19355 | | | | Common Stock | | | | | | | | | | | ||
| 55 East 52nd Street New York, NY | | | | Common Stock | | | | | | | | | | |
| Name and Address of Beneficial Owner | | | | Title of Class | | | | Amount and Nature of Beneficial Ownership (#) | | | | Percent of Class1 | | |||||||
| Orbis Investment Management Limited Orbis House 25 Front Street Hamilton, Bermuda HM11 | | | | Common Stock | | | | | | | | | | | ||||||
| Orbis Investment Management (U.S.), 600 Montgomery Street, Suite 3800 San Francisco, CA 94111 | | | | | | | | | | | | | | | | | ||||
| J. Richard Atwood Steven T. Romick | | | | Common Stock | | | | | | | | | | 5.78% | |
| Name of Beneficial Owner | | | | Shares of Common Stock1 | | | | Deferred Share Units2 | | | | Deferred Restricted Share Units3 | | | | Total | | Name of Beneficial Owner | | | | Shares of Common Stock1 | | | | Deferred Share Units2 | | | | Deferred Restricted Share Units3 | | | | Total | | ||||||||||||||||||||||||
| Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| James F. Albaugh | | | | | | 5,000 | | | | | | | — | | | | | | | 4,409 | | | | | | | 9,409 | | | James F. Albaugh | | | | | | 5,000 | | | | | | | — | | | | | | | 12,705 | | | | | | | 17,705 | | |
| Christopher L. Ayers | | | | | | 7,478 | | | | | | | — | | | | | | | 6,580 | | | | | | | 14,058 | | | Amy E. Alving | | | | | | 2,026 | | | | | | | — | | | | | | | 11,483 | | | | | | | 13,509 | | |
| Charles P. Blankenship | | | | | | 41,510 | | | | | | | — | | | | | | | — | | | | | | | 41,510 | | | Christopher L. Ayers | | | | | | 7,501 | | | | | | | — | | | | ��� | | | 22,462 | | | | | | | 29,963 | | |
| Arthur D. Collins, Jr. | | | | | | 16,666 | | | | | | | 67,132 | | | | | | | 12,565 | | | | | | | 96,363 | | | Arthur D. Collins, Jr. | | | | | | 16,666 | | | | | | | 67,972 | | | | | | | 28,516 | | | | | | | 113,154 | | |
| Elmer L. Doty | | | | | | 6,0004 | | | | | | | — | | | | | | | 4,409 | | | | | | | 10,409 | | | Elmer L. Doty | | | | | | 6,0004 | | | | | | | — | | | | | | | 397,705 | | | | | | | 403,705 | | |
| Rajiv L. Gupta | | | | | | — | | | | | | | — | | | | | | | 7,521 | | | | | | | 7,521 | | | Rajiv L. Gupta | | | | | | — | | | | | | | — | | | | | | | 15,817 | | | | | | | 15,817 | | |
| Sean O. Mahoney | | | | | | — | | | | | | | 7,300 | | | | | | | 7,521 | | | | | | | 14,821 | | | Sean O. Mahoney | | | | | | — | | | | | | | 7,391 | | | | | | | 24,239 | | | | | | | 31,630 | | |
| David J. Miller | | | | | | — | | | | | | | — | | | | | | | 1,888 | | | | | | | 1,888 | | | David J. Miller | | | | | | — | | | | | | | — | | | | | | | 10,184 | | | | | | | 10,184 | | |
| E. Stanley O’Neal | | | | | | — | | | | | | | 46,177 | | | | | | | 12,525 | | | | | | | 58,702 | | | E. Stanley O’Neal | | | | | | — | | | | | | | 46,755 | | | | | | | 28,326 | | | | | | | 75,081 | | |
| John C. Plant | | | | | | 10,0005 | | | | | | | 3,589 | | | | | | | 12,859 | | | | | | | 26,448 | | | John C. Plant | | | | | | 220,0005 | | | | | | | 3,634 | | | | | | | 1,028,282 | | | | | | | 1,251,916 | | |
| Patricia F. Russo | | | | | | 18,3336 | | | | | | | 32,155 | | | | | | | 8,289 | | | | | | | 58,777 | | | Ulrich R. Schmidt | | | | | | 5,333 | | | | | | | 3,450 | | | | | | | 15,817 | | | | | | | 24,600 | | |
| Ulrich R. Schmidt | | | | | | 3,333 | | | | | | | 3,407 | | | | | | | 7,521 | | | | | | | 14,261 | | | Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Kenneth J. Giacobbe | | | | | | 77,568 | | | | | | | — | | | | | | | — | | | | | | | 77,568 | | |
| David P. Hess* | | | | | | 50,7817 | | | | | | | — | | | | | | | 125,326 | | | | | | | 176,107 | | | Timothy D. Myers | | | | | | 85,949 | | | | | | | 17,451 | | | | | | | — | | | | | | | 103,400 | | |
| Kenneth J. Giacobbe | | | | | | 40,604 | | | | | | | — | | | | | | | — | | | | | | | 40,604 | | | Katherine H. Ramundo | | | | | | 33,734 | | | | | | | — | | | | | | | — | | | | | | | 33,734 | | |
| Timothy D. Myers | | | | | | 54,810 | | | | | | | 17,046 | | | | | | | — | | | | | | | 71,856 | | | Charles P. Blankenship | | | | | | 99,394 | | | | | | | — | | | | | | | — | | | | | | | 99,394 | | |
| Katherine H. Ramundo | | | | | | 12,780 | | | | | | | — | | | | | | | — | | | | | | | 12,780 | | | David P. Hess* | | | | | | 75,5256 | | | | | | | — | | | | | | | 99,920 | | | | | | | 175,445 | | |
| Eric V. Roegner | | | | | | 121,465 | | | | | | | 1,450 | | | | | | | — | | | | | | | 122,915 | | | Mark J. Krakowiak | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Klaus Kleinfeld | | | | | | 638,100 | | | | | | | — | | | | | | | — | | | | | | | 638,100 | | | Eric V. Roegner | | | | | | 72,506 | | | | | | | — | | | | | | | — | | | | | | | 72,506 | | |
| Christoph Kollatz | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | All Directors and Executive Officers as a Group (17 individuals) | | | | | | 614,770 | | | | | | | 146,653 | | | | | | | 1,695,456 | | | | | | | 2,456,869 | | |
| Karl Tragl | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | ||||||||||||||||||||||||||||||
| All Directors and Executive Officers as a Group (19 individuals) | | | | | | 453,341 | | | | | | | 178,256 | | | | | | | 211,413 | | | | | | | 843,010 | | |
| | | | | 2017 | | | | 2016 | | | | | | 2018 | | | | 2017 | | ||||||||||||
| Audit Fees | | | | | $ | 10.2 | | | | | | $ | 14.7 | | | Audit Fees | | | | | $ | 9.0 | | | | | | $ | 10.2 | | |
| Audit-Related Fees | | | | | $ | 0.1 | | | | | | $ | 5.1 | | | Audit-Related Fees | | | | | $ | 2.0 | | | | | | $ | 0.1 | | |
| Tax Fees | | | | | $ | 0.1 | | | | | | $ | 0.3 | | | Tax Fees | | | | | $ | 0.1 | | | | | | $ | 0.1 | | |
| All Other Fees | | | | | $ | 0.0 | | | | | | $ | 0.0 | | | All Other Fees | | | | | $ | 0.0 | | | | | | $ | 0.0 | | |
| Kenneth J. Giacobbe | | | Executive Vice President and Chief Financial Officer | |
| Timothy D. Myers | | | Executive Vice President and Group President, Global Rolled Products and Transportation and Construction Solutions | |
| Katherine H. Ramundo | | | Executive Vice President, Chief Legal Officer and Secretary | |
| |||||
| | Former | | ||
| | | Former Interim Chief Executive Officer | | |
| Mark J. Krakowiak | | | Former Executive Vice President, | |
| | | Former Executive Vice President and Group President, Engineered Products and Solutions | |
| WHAT WE DO | | | | WHAT WE DON’T DO | |
| ✓ Pay for Performance—We link compensation to measured performance in key ✓ Cancellation of Unvested Equity Awards Upon Termination of Employment—Unvested equity awards are generally forfeited upon termination of employment, other than in connection with disability, death or change-in-control, or if retirement-eligible. ✓ Robust Stock Ownership Guidelines— ✓ Double-Trigger Change-in-Control Provisions—Equity awards for ✓ Active Engagement with Investors—We engage with investors throughout the year to obtain ✓ Independent Compensation Consultant—The Compensation Committee retains a compensation consultant, ✓ Conservative Risk Profile—We generally apply varied performance measures in incentive programs to mitigate risk that executives will be motivated to pursue results with respect to any one performance measure to the detriment of Arconic as a whole. ✓ Claw-Back Policy—Both our annual cash incentive compensation plan and our stock incentive plan contain “claw-back” provisions providing for reimbursement of incentive compensation from NEOs in certain circumstances. | | | | ✗ No Guaranteed Bonuses—Our annual incentive compensation plan is performance-based and does not include any minimum payment levels. ✗ No Parachute Tax Gross-Ups— ✗ No Short Sales, Derivative Transactions or Hedging—We do not allow short sales or derivative or speculative transactions in, or hedging of, Arconic securities by our directors, officers or employees. Directors and certain officers are also prohibited from pledging Arconic securities as collateral. ✗ No Dividends on Unvested Equity Awards—We do not pay dividends ✗ No Share Recycling or Option Repricing—Our equity plans prohibit share recycling, the adding back of shares tendered in payment of the exercise price of a stock option award or withheld to pay taxes, and repricing underwater stock options. ✗ No Significant Perquisites—We limit the perquisites we pay to our NEOs to those that serve reasonable business purposes. | |
| Shareholder Feedback | | | | Our Responses/Changes | |
| Emphasize long-term performance-based equity awards | | | | We | |
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| Compensation Type | | | | Guiding Principle | | | Design/Structure | |
| Base Salary | | | | • Target total direct compensation, including base salary, at median of market to provide competitive pay | | | • For CEO compensation, including base pay, we used a custom peer group of | |
| Short-Term Annual Incentive Compensation | | | | • Choose annual IC weighted metrics that focus management’s actions on achieving the greatest positive impact on Arconic’s financial performance and that include a means to assess and motivate performance relative to peers • Set annual IC targets that challenge management to achieve continuous improvement in performance • Take into account individual performance that may include non-financial measures contributing to the success of the Company | | | • NEO annual incentives are paid in cash and determined through a three-step performance measurement process: 1. Initial Threshold Performance Goal: Corporate and, as applicable, Group Performance Measures 2. Financial 3. Individual NEO Performance: Individual Multiplier Applied to • Performance goals based 1. 2. | |
| Long-Term Compensation | | | | • Make LTI equity the most significant portion of total compensation for senior executives and managers, increasing the • Set LTI target grant levels in line with median among industry peers that are competitive to attract, retain and motivate executives and factor in individual performance and future potential for long-term retention • Choose LTI metrics that focus management’s actions on achieving the greatest positive impact on Arconic’s financial performance and that include a means to assess and motivate performance relative to peers • Set LTI targets that challenge management to achieve continuous improvement in performance and deliver long-term growth | | | • • Stock options vest ratably over three years following the grant date and have value only to the extent of share price appreciation • To highlight Arconic’s focus on long-term capital efficiency and profitable growth: 1. 50% of 2. 25% of 3. 25% of • Measure performance relative to peers by applying a relative TSR multiplier at the end of the 1. Up to -10% for TSR below median 2. Up to +10% for TSR above median (plan capped at 200% overall) | |
| Arconic’s CEO Peer Group | | ||||
| • BorgWarner Inc. • Cummins Inc. • • Eaton Corporation plc • Honeywell International Inc. • Illinois Tool Works Inc. • Ingersoll-Rand plc • L3 Technologies, Inc. | | | | • Northrop Grumman Corporation • PACCAR Inc • Parker-Hannifin Corporation • Raytheon Company • Rockwell Collins, • Spirit AeroSystems Holdings, Inc. • Stanley Black & Decker, Inc. • Textron Inc. | |
| |
| Metric | | | | Defined Corporate Level Payout Percentage | | | | Result | | | | % of Target | | | | Weighting | | | | Weighted Result | | |||||||||||||||||||||||
| 0% | | | | 50% | | | | 100% (Target) | | | | 150% | | | | 200% | | | ||||||||||||||||||||||||||
| ($in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
| Financial Measures | | | | EBIT | | | | | $ | 1,075 | | | | | $1,195 | | | | $1,314 | | | | $1,554 | | | | $1,793 | | | | $1,315 | | | | 100% | | | | 45.0% | | | | 45.0% | |
| Free Cash Flow | | | | | $ | 236 | | | | | $ 398 | | | | $ 560 | | | | $ 885 | | | | $1,210 | | | | $ 283 | | | | 14.6% | | | | 45.0% | | | | 6.6% | | ||||
| Non- Financial Measures | | | | Safety1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DART | | | | | | | | | | | 0.467 | | | | 0.455 | | | | | | | | 0.444 | | | | 0.406 | | | | 200.0% | | | | 5.0% | | | | 10.0% | | ||||
| Diversity2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
| Executive Level Women, Global | | | | | | | | | | | 23.3% | | | | 23.5% | | | | | | | | 24.0% | | | | 23.6% | | | | 120% | | | | 1.25% | | | | 1.5% | | ||||
| Executive Level Minorities, U.S. | | | | | | | | | | | 15.0% | | | | 15.2% | | | | | | | | 15.7% | | | | 14.6% | | | | 0% | | | | 1.25% | | | | 0% | | ||||
| Professional Level Women, Global | | | | | | | | | | | 29.4% | | | | 29.7% | | | | | | | | 30.2% | | | | 29.1% | | | | 0% | | | | 1.25% | | | | 0% | | ||||
| Professional Level Minorities, U.S. | | | | | | | | | | | 19.2% | | | | 19.5% | | | | | | | | 20.0% | | | | 19.1% | | | | 0% | | | | 1.25% | | | | 0% | | ||||
| IC RESULT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 63.1% | |
| Financial Metric | | | | Defined Corporate Level Payout Percentage | | | | Result | | | | % of Target | | | | Weighting | | | | Weighted Result | | |||||||||||||||||||
| 0% | | | | 50% | | | | 100% (Target) | | | | 150% | | | | 200% | | | ||||||||||||||||||||||
| ($in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted Operating Income | | | | $1,470 | | | | | $ | 1,549 | | | | | $1,627 | | | | $1,827 | | | | $2,027 | | | | $1,391 | | | | 0.0% | | | | 50.0% | | | | 0.0% | |
| Controllable Free Cash Flow | | | | $1,382 | | | | | $ | 1,426 | | | | | $1,471 | | | | $1,716 | | | | $1,871 | | | | $1,415 | | | | 37.0% | | | | 50.0% | | | | 18.5% | |
| IC RESULT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 18.5% | |
| Performance Metric | | | Payout Percentage | | | 2017 Actual | | Plan Result | | Weighting | | Payout Result | | Performance Metric | | | Payout Percentage | | | 2018 Actual | | Plan Result | | Weighting | | Payout Result | | |||||||||||||||||||||||||||||||||
| 0% | | 50% | | 100% | | 150% | | 200% | | | 0% | | 50% | | 100% | | 150% | | 200% | | ||||||||||||||||||||||||||||||||||||||||
| Revenue ($M) | | $12,038 or below | | | $ | 12,203 | | | $12,538 | | $12,931 | | $13,325 or above | | $12,892 | | 144.9% | | 25% | | 36.2% | | Revenue ($M) | | $13,297 or below | | $13,499 | | $13,700 | | $14,305 | | $14,507 or above | | $14,076 | | 131.0% | | 25% | | 32.8% | | ||||||||||||||||||
| EBITDA Margin (%) | | 12.4% or below | | | | 13.70% | | | 15.0% | | 16.80% | | 18.6% or above | | 14.3% | | 75.4% | | 25% | | 18.8% | | EBITDA Margin (%) | | 14.3% or below | | 15.2% | | 16.1% | | 18.8% | | 19.7% or above | | 14.0% | | 0.0% | | 25% | | 0.0% | | ||||||||||||||||||
| RONA (%) | | 4.7% or below | | | | 7.00% | | | 9.3% | | 12.70% | | 16.2% or above | | 8.4% | | 81.2% | | 50% | | 40.6% | | RONA (%) | | 7.9% or below | | 9.3% | | 10.6% | | 14.0% | | 14.7% or above | | 9.1% | | 45.6% | | 50% | | 22.8% | | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | TOTAL | | 100% | | 95.7% | | | | | | | | | | | | | | | | TOTAL | | 100% | | 55.5% | |
| Name and Principal Position | | | Year | | | Salary ($) | | | Bonus ($) | | | Stock Awards ($) | | | Option Awards ($) | | | Non-Equity Incentive Plan Compensation ($) | | | Change in Pension Value and Non-Qualified Deferred Compensation Earnings ($) | | | All Other Compensation ($) | | | Total ($) | | |||
| (a) | | | (b) | | | (c) | | | (d) | | | (e) | | | (f) | | | (g) | | | (h) | | | (i) | | | (j) | | |||
| Kenneth J. Giacobbe Executive Vice President and Chief Financial Officer | | | 2018 | | | | $ | 512,500 | | | | $0 | | | $960,089 | | | $240,051 | | | $94,813 | | | $0 | | | $105,621 | | | $1,913,074 | |
| 2017 | | | | $ | 493,333 | | | | $0 | | | $1,348,867 | | | $324,018 | | | $357,987 | | | $308,675 | | | $324,571 | | | $3,157,451 | | |||
| 2016 | | | | $ | 386,250 | | | | $0 | | | $390,381 | | | $0 | | | $281,824 | | | $149,741 | | | $429,478 | | | $1,637,674 | | |||
| Timothy D. Myers Executive Vice President and Group President, Global Rolled Products and Transportation and Construction Solutions | | | 2018 | | | | $ | 542,500 | | | | $0 | | | $1,056,189 | | | $264,036 | | | $233,818 | | | $0 | | | $57,120 | | | $2,153,663 | |
| 2017 | | | | $ | 436,250 | | | | $0 | | | $949,308 | | | $228,052 | | | $396,356 | | | $516,994 | | | $19,333 | | | $2,546,293 | | |||
| Katherine H. Ramundo Executive Vice President, Chief Legal Officer and Secretary | | | 2018 | | | | $ | 550,000 | | | | $0 | | | $1,960,185 | | | $240,051 | | | $101,750 | | | $0 | | | $60,953 | | | $2,912,938 | |
| 2017 | | | | $ | 550,000 | | | | $0 | | | $999,226 | | | $240,008 | | | $381,755 | | | $0 | | | $54,498 | | | $2,225,487 | | |||
| Chip Blankenship1 Former Chief Executive Officer | | | 2018 | | | | $ | 1,204,710 | | | | $0 | | | $9,800,346 | | | $5,700,064 | | | $0 | | | $0 | | | $952,087 | | | $17,657,207 | |
| David P. Hess2 Former Interim Chief Executive Officer | | | 2018 | | | | $ | 39,855 | | | | $0 | | | $0 | | | $0 | | | $0 | | | $0 | | | $27,563 | | | $67,418 | |
| 2017 | | | | $ | 802,669 | | | | $744,100 | | | $3,019,240 | | | $0 | | | $0 | | | $0 | | | $170,764 | | | $4,736,773 | | |||
| Mark J. Krakowiak3 Former Executive Vice President, Strategy and Development | | | 2018 | | | | $ | 463,768 | | | | $0 | | | $700,107 | | | $0 | | | $64,348 | | | $0 | | | $530,413 | | | $1,758,636 | |
| Eric V. Roegner4 Former Executive Vice President and Group President, Engineered Products and Solutions | | | 2018 | | | | $ | 320,208 | | | | $0 | | | $960,089 | | | $240,051 | | | $23,695 | | | $0 | | | $1,219,858 | | | $2,763,901 | |
| 2017 | | | | $ | 478,482 | | | | $0 | | | $729,590 | | | $0 | | | $317,821 | | | $0 | | | $55,241 | | | $1,581,134 | |
| Name and Principal Position | | | Year | | | Salary ($) | | | Bonus ($) | | | Stock Awards ($) | | | Option Awards ($) | | | Non-Equity Incentive Plan Compensation ($) | | | Change in Pension Value and Non-Qualified Deferred Compensation Earnings ($) | | | All Other Compensation ($) | | | Total ($) | | |||
| (a) | | | (b) | | | (c) | | | (d) | | | (e) | | | (f) | | | (g) | | | (h) | | | (i) | | | (j) | | |||
| David P. Hess1 Interim Chief Executive Officer | | | 2017 | | | | $ | 802,669 | | | | $744,100 | | | $3,019,240 | | | $0 | | | $0 | | | $0 | | | $170,764 | | | $4,736,773 | |
| Kenneth J. Giacobbe Executive Vice President and Chief Financial Officer | | | 2017 | | | | $ | 493,333 | | | | $0 | | | $1,348,867 | | | $324,018 | | | $357,987 | | | $308,675 | | | $324,571 | | | $3,157,451 | |
| 2016 | | | | $ | 386,250 | | | | $0 | | | $390,381 | | | $0 | | | $281,824 | | | $149,741 | | | $429,478 | | | $1,637,674 | | |||
| Timothy D. Myers Executive Vice President and Group President, Global Rolled Products and Transportation and Construction Solutions | | | 2017 | | | | $ | 436,250 | | | | $0 | | | $949,308 | | | $228,052 | | | $396,356 | | | $516,994 | | | $19,333 | | | $2,546,293 | |
| Katherine H. Ramundo Executive Vice President, Chief Legal Officer and Secretary | | | 2017 | | | | $ | 550,000 | | | | $0 | | | $999,226 | | | $240,008 | | | $381,755 | | | $0 | | | $54,498 | | | $2,225,487 | |
| Eric V. Roegner Executive Vice President and Group President, Engineered Products and Solutions | | | 2017 | | | | $ | 478,482 | | | | $0 | | | $729,590 | | | $0 | | | $317,821 | | | $0 | | | $55,241 | | | $1,581,134 | |
| Klaus Kleinfeld2 Former Chairman and Chief Executive Officer | | | 2017 | | | | $ | 532,174 | | | | $0 | | | $7,493,0932 | | | $1,800,0002 | | | $0 | | | $650,440 | | | $6,114,784 | | | $16,590,4912 | |
| 2016 | | | | $ | 1,440,000 | | | | $0 | | | $7,912,2212 | | | $1,978,0022 | | | $2,137,320 | | | $3,111,941 | | | $226,304 | | | $16,805,7882 | | |||
| 2015 | | | | $ | 1,440,000 | | | | $0 | | | $8,600,3942 | | | $2,150,0252 | | | $1,816,020 | | | $3,246,848 | | | $232,942 | | | $17,486,2292 | | |||
| Christoph Kollatz3 Former Executive Vice President, Corporate Development, Strategy and New Ventures | | | 2017 | | | | $ | 386,750 | | | | $0 | | | 2,175,2513 | | | $522,5223 | | | $183,030 | | | $0 | | | $1,086,469 | | | $4,354,0223 | |
| 2016 | | | | $ | 531,250 | | | | $0 | | | $688,0193 | | | $03 | | | $551,877 | | | $0 | | | $104,068 | | | $1,875,2143 | | |||
| Karl Tragl4 Former Executive Vice President and Group President, Engineered Products and Solutions | | | 2017 | | | | $ | 454,167 | | | | $0 | | | $1,998,2314 | | | $480,0174 | | | $244,569 | | | $0 | | | $1,324,758 | | | $4,501,7424 | |
| 2016 | | | | $ | 453,125 | | | | $0 | | | $1,600,1764 | | | $04 | | | $557,756 | | | $0 | | | $200,243 | | | $2,811,3004 | |
| Name | | | Year | | | Total Compensation (from column j above) | | | Forfeited Equity Awards | | | % of Total Equity (columns e & f above) Forfeited | | | Total Compensation Less Forfeited Equity Awards | | |||
| Klaus Kleinfeld Former Chairman and Chief Executive Officer | | | 2017 | | | | $ | 16,590,491 | | | | $9,293,093 | | | 100% | | | $7,297,398 | |
| 2016 | | | | $ | 16,805,788 | | | | $9,230,889 | | | 93% | | | $7,574,899 | | |||
| 2015 | | | | $ | 17,486,229 | | | | $9,317,069 | | | 87% | | | $8,169,160 | | |||
| Total Forfeited Equity Awards | | | $27,841,051 | | | | | | | |
| | | | | Grant Date Value of Performance Award | | ||||||||||
| Name | | | | At Target | | | | At Maximum | | ||||||
| Kenneth J. Giacobbe | | | | | | $960,089 | | | | | | | $1,920,179 | | |
| Timothy D. Myers | | | | | | $1,056,189 | | | | | | | $2,112,378 | | |
| Katherine H. Ramundo | | | | | | $960,089 | | | | | | | $1,920,179 | | |
| Chip Blankenship | | | | | | $6,800,104 | | | | | | | $13,600,209 | | |
| Eric V. Roegner | | | | | | $960,089 | | | | | | | $1,920,179 | | |
| Name | | | Company Matching Contribution | | | 3% Retirement Contribution | | | Total Company Contribution | | ||||||
| Savings Plan | | | Def. Comp. Plan | | | Savings Plan1 | | | Def. Comp. Plan | | ||||||
| Kenneth J. Giacobbe | | | $15,950 | | | $0 | | | $16,500 | | | $6,675 | | | $39,125 | |
| Timothy D. Myers | | | $16,500 | | | $16,050 | | | $16,500 | | | $8,070 | | | $57,120 | |
| Katherine H. Ramundo | | | $16,500 | | | $16,500 | | | $8,250 | | | $19,703 | | | $60,953 | |
| Chip Blankenship | | | $16,500 | | | $52,250 | | | $8,250 | | | $27,891 | | | $104,891 | |
| David P. Hess | | | $0 | | | $0 | | | $ | | | $ | | | $ | |
| | | $ | | | $0 | | | $ | | | $ | | | $ | ||
| |||||||||||||||||
| Eric V. Roegner | | | $ | | | $ | | | $ | | | $ | | | $ | |
|
| Name | | | Grant Dates | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards1 | | | Estimated Future Payouts Under Equity Incentive Plan Awards2 | | | All Other Stock Awards: Number of Shares of Stock or Units3 (#) | | | All Other Option Awards: Number of Securities Underlying Options 4 (#) | | | Exercise or Base Price of Option Awards ($/sh) | | | 2017 Grant Date Fair Value of Stock and Option Awards ($) | | |||||||||||||||
| Threshold ($) | | | Target ($) | | | Maximum5 ($) | | | Threshold (#) | | | Target (#) | | | Maximum (#) | | |||||||||||||||||||||
| (a) | | | (b) | | | (c) | | | (d) | | | (e) | | | (f) | | | (g) | | | (h) | | | (i) | | | (j) | | | (k) | | | (l) | | |||
| David P. Hess | | | 3/10/2017 | | | | | | | | | | | | | | | | | | | | | | | | 711 | | | | | | | | | $19,076 | |
| | | | 10/23/2017 | | | | | | | | | | | | | | | | | | | | | | | | 123,210 | | | | | | | | | $3,000,164 | |
| Kenneth J. Giacobbe | | | | | | | $ | 246,667 | | | | $493,333 | | | $1,479,999 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/13/2017 | | | | | | | | | | | | | | | 0 | | | 61,340 | | | 122,680 | | | | | | 51,760 | | | $21.13 | | | $1,672,884 | |
| Katherine H. Ramundo | | | | | | | $ | 275,000 | | | | $550,000 | | | $1,650,000 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/13/2017 | | | | | | | | | | | | | | | 0 | | | 45,440 | | | 90,880 | | | | | | 38,340 | | | $21.13 | | | $1,239,234 | |
| Timothy D. Myers | | | | | | | $ | 176,272 | | | | $352,543 | | | $1,057,629 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/13/2017 | | | | | | | | | | | | | | | 0 | | | 43,170 | | | 86,340 | | | | | | 36,430 | | | $21.13 | | | $1,177,360 | |
| Eric V. Roegner | | | | | | | $ | 213,197 | | | | $426,394 | | | $1,279,182 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/13/2017 | | | | | | | | | | | | | | | 0 | | | 16,920 | | | 33,840 | | | 16,920 | | | | | | | | | $729,590 | |
| Klaus Kleinfeld | | | 1/13/2017 | | | | | | | | | | | | | | | 0 | | | 340,750 | | | 681,500 | | | | | | 287,540 | | | $21.13 | | | $9,293,093 | |
| Christoph Kollatz | | | | | | | $ | 150,610 | | | | $301,219 | | | $903,657 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/13/2017 | | | | | | | | | | | | | | | 0 | | | 98,920 | | | 197,840 | | | | | | 83,470 | | | $21.13 | | | $2,697,773 | |
| Karl Tragl | | | | | | | $ | 227,084 | | | | $454,167 | | | $1,362,501 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/13/2017 | | | | | | | | | | | | | | | 0 | | | 90,870 | | | 181,740 | | | | | | 76,680 | | | $21.13 | | | $2,478,248 | |
| Name | | | Grant Dates | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards1 | | | Estimated Future Payouts Under Equity Incentive Plan Awards2 | | | All Other Stock Awards: Number of Shares of Stock or Units3 (#) | | | All Other Option Awards: Number of Securities Underlying Options4 (#) | | | Exercise or Base Price of Option Awards ($/sh) | | | 2018 Grant Date Fair Value of Stock and Option Awards ($) | | |||||||||||||||
| Threshold ($) | | | Target ($) | | | Maximum ($) | | | Threshold (#) | | | Target (#) | | | Maximum (#) | | |||||||||||||||||||||
| (a) | | | (b) | | | (c) | | | (d) | | | (e) | | | (f) | | | (g) | | | (h) | | | (i) | | | (j) | | | (k) | | | (l) | | |||
| Kenneth J. Giacobbe | | | | | | | $ | 256,250 | | | | $512,500 | | | $1,537,500 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/19/2018 | | | | | | | | | | | | | | | 0 | | | 31,770 | | | 63,540 | | | | | | 24,520 | | | $30.22 | | | $1,200,140 | |
| Timothy D. Myers | | | | | | | $ | 271,250 | | | | $542,500 | | | $1,627,500 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/19/2018 | | | | | | | | | | | | | | | 0 | | | 34,950 | | | 69,900 | | | | | | 26,970 | | | $30.22 | | | $1,320,225 | |
| Katherine H. Ramundo | | | | | | | $ | 275,000 | | | | $550,000 | | | $1,650,000 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/19/2018 | | | | | | | | | | | | | | | 0 | | | 31,770 | | | 63,540 | | | | | | 24,520 | | | $30.22 | | | $1,200,140 | |
| | | | 5/16/2018 | | | | | | | | | | | | | | | | | | | | | | | | 55,530 | | | | | | | | | $1,000,095 | |
| Chip Blankenship | | | | | | | $ | 903,533 | | | | $1,807,065 | | | $5,421,195 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1/19/2018 | | | | | | | | | | | | | | | 0 | | | 225,020 | | | 450,040 | | | 99,280 | | | 537,620 | | | $30.22 | | | $15,500,410 | |
| David P. Hess5 | | | — | | | | | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Mark J. Krakowiak | | | | | | | $ | 173,913 | | | | $347,826 | | | $1,043,478 | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2/15/2018 | | | | | | | | | | | | | | | | | | | | | | | | 27,760 | | | | | | | | | $700,107 | |
| Eric V. Roegner | | | 1/19/2018 | | | | $ | 160,104 | | | | $320,208 | | | $960,624 | | | 0 | | | 31,770 | | | 63,540 | | | | | | 24,520 | | | $30.22 | | | $1,200,140 | |
| Name | | | Option Awards | | | Stock Awards | | |||||||||||||||||||||||||||||||
| Number of Securities Underlying Unexercised Options (Exercisable) (#) | | | Number of Securities Underlying Unexercised Options (Unexercisable) (#) | | | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | | | Option Exercise Price ($) | | | Option Expiration Date | | | Number of Shares or Units of Stock That Have Not Vested (#) | | | Market Value of Shares or Units of Stock That Have Not Vested ($) | | | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | | | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | | | ||||||||||||
| (a) | | | (b) | | | (c) | | | (d) | | | (e) | | | (f) | | | (g) | | | (h) | | | (i) | | | (j) | | | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||
| Stock Awards1 | | | | | | | | | | | | | | | | | | | | 20,688 | | | $348,800 | | | 97,394 | | | $1,642,063 | | | |||||||
| Time-Vested Options2 | | | 5,040 | | | | | — | | | | — | | | | | 1/20/2022 | | | | | | | | | | | | | | | |||||||
| | | | 17,254 | | | | | 34,506 | | | | — | | | | | | | | | | | | | | | | | | | ||||||||
| | | | — | | | | | 24,520 | | | | — | | | $30.22 | | | 1/19/2028 | | | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||
| Stock Awards | | | | | | | | | | | | | | | | | | | | | | | $ | | | | | $ | | | ||||||||
| Time-Vested Options | | | | | | | — | | | | — | | | $30.51 | | | 1/26/2020 | | | | | | | | | | | | | | | |||||||
| | | | 9,027 | | | | | — | | | | — | | | $22.92 | | | 1/20/2022 | | | | | | | | | | | | | | | ||||||
| | | | 12,144 | | | | | 24,286 | | | | — | | | $21.13 | | | 1/13/2027 | | | | | | | | | | | | | | |||||||
| | | | — | | | | | 26,970 | | | | — | | | $ | | | 1/ | | | | | | | | | | | | | | | ||||||
| Katherine H. Ramundo | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| Stock Awards | | | | | | | | | | | | | | | | | | | | | | | $ | | | | | $ | | | ||||||||
| Time-Vested Options | | | | | | | | | | — | | | $21.13 | | | 1/13/2027 | | | | | | | | | | | | | | | ||||||||
| | | — | | | | | 24,520 | | | | — | | | $30.22 | | | 1/19/2028 | | | | | | | | | | | | | | | |||||||
| Chip Blankenship | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| Stock Awards | | | | | | | | | | | | | | | | | | | | | | | $ | | | | | $ | | | ||||||||
| Time-Vested | | | | | | | | | | — | | | $ | | | 1/ | | | | | | | | | | | | | | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||
| | | — | | | | | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||
| Stock Awards | | | | | | | | | | | | | | | | | | | | | | | $ | |||||||||||||||
| | — | | | | — | | | |||||||||||||||||||||||||||||||
| | ||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| |||||||||||||||||||||||||||||||||||||||
| | — | | | | | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | |||||||||
|
| Name | | | Option Awards | | Stock Awards | | Name | | | Option Awards | | Stock Awards | | ||||||||||||||||||||
| Number of Shares Acquired on Exercise (#) | | Value Realized on Exercise ($) | | Number of Shares Acquired on Vesting (#) | | Value Realized on Vesting ($) | | | Number of Shares Acquired on Exercise (#) | | Value Realized on Exercise ($) | | Number of Shares Acquired on Vesting (#) | | Value Realized on Vesting ($) | | |||||||||||||||||
| (a) | | (b) | | (c) | | (d) | | (e) | | (a) | | (b) | | (c) | | (d) | | (e) | | ||||||||||||||
| David P. Hess | | — | | | | — | | | — | | — | | Kenneth J. Giacobbe | | — | | | | — | | | 10,281 | | $312,851 | | ||||||||
| Kenneth J. Giacobbe | | — | | | | — | | | 13,983 | | $290,007 | | Timothy D. Myers | | — | | | | — | | | 9,809 | | $298,488 | | ||||||||
| Katherine H. Ramundo | | — | | | | — | | | — | | — | | Katherine H. Ramundo | | — | | | | — | | | — | | — | | ||||||||
| Timothy D. Myers | | — | | | | — | | | 13,358 | | $277,045 | | Chip Blankenship | | — | | | | — | | | — | | — | | ||||||||
| Eric V. Roegner | | — | | | | — | | | 22,795 | | $472,768 | | David P. Hess1 | | — | | | | — | | | 123,210 | | $3,746,816 | | ||||||||
| Klaus Kleinfeld | | 753,485 | | | $ | 2,989,195 | | | 274,023 | | $5,683,237 | | Mark J. Krakowiak | | — | | | | — | | | — | | — | | ||||||||
| Christoph Kollatz | | — | | | | — | | | — | | — | | Eric V. Roegner | | 31,760 | | | $ | 162,935 | | | 17,212 | | $523,761 | | ||||||||
| Karl Tragl | | | | | | — | | | — | | — | |
| Name1 | | | Plan Name(s) | | | Years of Credited Service | | | Present Value of Accumulated Benefits | | | Payments During Last Fiscal Year | | |||
| Kenneth J. Giacobbe | | | Arconic Retirement Plan | | | | | | | | $ | | | | | |
| | | | Excess Benefits Plan C | | | | | | | | | $ | | | | |
| | | | Total | | | | | | | | | $ | | | N/A | |
| Timothy D. Myers | | | Arconic Retirement Plan | | | | | | | | $ | | | | | |
| | | | Excess Benefits Plan C | | | | | | | | | $ | | | | |
| | | | Total | | | | | | | | | $ 2,217,535 | | | N/A | |
|
| Name | | Executive Contributions in 2017 ($) | | Registrant Contributions in 2017 ($) | | Aggregate Earnings in 2017 ($) | | Aggregate Withdrawals Distributions ($) | | Aggregate Balance at 12/31/2017 FYE ($) | | Name | | Executive Contributions in 2018 ($) | | Registrant Contributions in 2018 ($) | | Aggregate Earnings in 2018 ($) | | Aggregate Withdrawals Distributions ($) | | Aggregate Balance at 12/31/2018 FYE ($) | | ||||||||||||||||||||||||||||||||||||||||
| (a) | | (b) | | (c) | | (d) | | (e) | | (f) | | (a) | | (b) | | (c) | | (d) | | (e) | | (f) | | ||||||||||||||||||||||||||||||||||||||||
| David P. Hess | | | $ | 0 | | | | $ | 15,550 | | | | | $ | 343 E | | | | | | — | | | | $ | 15,893 | | | Kenneth J. Giacobbe | | | $ | 0 | | | | $ | 6,675 | | | | | $ | 539 E | | | | | | — | | | | $ | 31,665 | | | ||||||
| | $ | 0 D | | | | | $ | 0 D | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kenneth J. Giacobbe | | | $ | 0 | | | | $ | 0 | | | | | $ | 451 E | | | | | | — | | | | $ | 24,451 | | | Timothy D. Myers | | | $ | 26,900 | | | | $ | 24,120 | | | | | $ | 0 E | | | | | | — | | | | $ | 355,061 | | | ||||||
| | $ | 0 D | | | | | $ | 3,972 D | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Timothy D. Myers | | | $ | 8,667 | | | | $ | 3,133 | | | | | $ | 125,879 E | | | | | | — | | | | $ | 480,313 | | | Katherine H. Ramundo | | | $ | 16,500 | | | | $ | 36,203 | | | | | $ | 0 E | | | | | | — | | | | $ | 96,080 | | | ||||||
| | $ | 3,631 D | | | | | $ | 0 D | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Katherine H. Ramundo | | | $ | 16,800 | | | | $ | 30,198 | | | | | $ | 1,844 E | | | | | | — | | | | $ | 48,842 | | | Chip Blankenship | | | $ | 52,250 | | | | $ | 80,141 | | | | | $ | 0 E | | | | | | — | | | | $ | 121,248 | | | ||||||
| | $ | 0 D | | | | | $ | 0 D | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eric V. Roegner | | | $ | 79,497 | | | | $ | 30,941 | | | | | $ | 402,211 E | | | | | | — | | | | $ | 2,055,646 | | | David P. Hess | | | $ | 3,746,8161 | | | | $ | 15,269 | | | | | $ | 562 E | | | | | $ | 31,723 | | | | $ | 2,077,321 | | | ||||||
| | $ | 334 D | | | | | $ | 0 D | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Klaus Kleinfeld | | | $ | 15,730 | | | | $ | 15,730 | | | | | $ | 325,697 E | | | | | $ | 1,803,624 | | | | $ | 0 | | | Mark J. Krakowiak | | | $ | 0 | | | | $ | 5,663 | | | | | $ | 0 E | | | | | | — | | | | $ | 5,409 | | | ||||||
| | $ | 2,766 D | | | | | $ | 0 D | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Christoph Kollatz | | | $ | 7,898 | | | | $ | 28,403 | | | | $ | 14,321 E | | | | | — | | | | $ | 106,452 | | | Eric V. Roegner | | | $ | 51,662 | | | | $ | 14,486 | | | | | $ | 0 E | | | | | | — | | | | $ | 1,919,131 | | | ||||||||
| Karl Tragl | | | $ | 0 | | | | $ | 22,258 | | | | $ | 3,068 E | | | | | — | | | | $ | 30,365 | | | | | $ | 338 D | | |
| Name | | Estimated Net Present Value of Cash Severance Payments | | Estimated Net Present Value of Two Years Additional Retirement Accrual | | Estimated net present value of continued active health care benefits | | Total | | Name | | Estimated Net Present Value of Cash Severance Payments | | Estimated Net Present Value of Two Years Additional Retirement Accrual | | Estimated net present value of continued active health care benefits | | Total | | ||||||||||||||||||||||||||||||||
| Kenneth J. Giacobbe | | | $ | 979,029 | | | | $ | 96,997 | | | | $ | 39,906 | | | | $ | 1,115,933 | | | Kenneth J. Giacobbe | | | $ | 1,004,731 | | | | $ | 60,284 | | | | $ | 39,692 | | | | $ | 1,104,707 | | | ||||||||
| Timothy D. Myers | | | $ | 1,027,981 | | | | $ | 149,174 | | | | $ | 40,579 | | | | $ | 1,217,734 | | | Timothy D. Myers | | | $ | 1,065,210 | | | | $ | 63,913 | | | | $ | 40,334 | | | | $ | 1,169,457 | | | ||||||||
| Katherine H. Ramundo | | | $ | 1,076,932 | | | | $ | 64,616 | | | | $ | 595 | | | | $ | 1,142,143 | | | Katherine H. Ramundo | | | $ | 1,073,014 | | | | $ | 64,381 | | | | $ | 591 | | | | $ | 1,137,986 | | | ||||||||
| Eric V. Roegner | | | $ | 1,037,771 | | | | $ | 62,266 | | | | $ | 595 | | | | $ | 1,100,632 | | | Chip Blankenship | | | $ | 6,096,671 | | | | $ | 182,900 | | | | $ | 40,334 | | | | $ | 6,319,905 | | | ||||||||
| Mark J. Krakowiak | | | $ | 853,534 | | | | $ | 51,212 | | | | $ | 1,963 | | | | $ | 906,709 | | |
| Name | | Estimated net present value of change in control severance and benefits | | Name | | Estimated net present value of change in control severance and benefits | | ||||||||
| Kenneth J. Giacobbe | | | $ | 3,008,018 | | | Kenneth J. Giacobbe | | | $ | 4,287,661 | | | ||
| Timothy D. Myers | | | $ | 4,032,065 | | | Timothy D. Myers | | | $ | 4,225,791 | | | ||
| Katherine H. Ramundo | | | $ | 2,790,445 | | | Katherine H. Ramundo | | | $ | 4,366,013 | | | ||
| Eric V. Roegner | | | $ | 2,654,182 | | | Chip Blankenship | | | $ | 16,108,721 | | | ||
| Mark J. Krakowiak | | | $ | 2,368,783 | | |
| Stock options outstanding | | | | 9,557,304 | |
| Weighted average exercise price | | | | $24.80 | |
| Weighted average remaining contractual life | | | | 4.04 years | |
| Restricted share units outstanding (unvested)1 | | | | 6,230,854 | |
| Shares remaining for grant under the 2013 Plan2 | | | | 15,695,465 | |
| | | | | | | | | Performance RSUs | | | | | | | | | | Performance RSUs | | ||||||||
| Name and Position | | | | Options & RSUs No. of Shares | | | | Target No. of Shares | | | | Maximum No. of Shares | | Name and Position | | | | Options & RSUs No. of Shares | | | | Target No. of Shares | | | | Maximum No. of Shares | |
| David P. Hess2 Interim Chief Executive Officer | | | | 123,210 | | | | | | | | | | Kenneth J. Giacobbe Executive Vice President and Chief Financial Officer | | | | 196,590 | | | | 145,030 | | | | 290,060 | |
| Kenneth J. Giacobbe Executive Vice President and Chief Financial Officer | | | | 101,769 | | | | 118,599 | | | | 237,198 | | Timothy D. Myers Executive Vice President and Group President, Global Rolled Products and Transportation and Construction Solutions | | | | 118,034 | | | | 130,040 | | | | 260,080 | |
| Timothy D. Myers Executive Vice President, Global Rolled Products and Transportation and Construction Solutions | | | | 85,943 | | | | 100,663 | | | | 201,326 | | Katherine H. Ramundo Executive Vice President, Chief Legal Officer and Secretary | | | | 149,037 | | | | 124,810 | | | | 249,620 | |
| Katherine H. Ramundo Executive Vice President, Chief Legal Officer and Secretary | | | | 81,607 | | | | 77,210 | | | | 154,420 | | Chip Blankenship2 Former Chief Executive Officer | | | | 636,900 | | | | 225,020 | | | | 450,040 | |
| Eric V. Roegner Executive Vice President and Group President, Engineered Products and Solutions | | | | 106,820 | | | | 115,544 | | | | 231,088 | | David P. Hess3 Former Interim Chief Executive Officer | | | | 123,210 | | | | N/A | | | | N/A | |
| Klaus Kleinfeld3 Former Chairman and Chief Executive Officer | | | | 1,187,035 | | | | 1,387,040 | | | | 2,774,080 | | Mark J. Krakowiak2 Former Executive Vice President, Strategy and Development | | | | 27,760 | | | | N/A | | | | N/A | |
| Christoph Kollatz3 Former Executive Vice President, Corporate Development, Strategy & New Ventures | | | | 109,823 | | | | 121,572 | | | | 243,144 | | Eric V. Roegner2 Former Executive Vice President and Group President, Engineered Products and Solutions | | | | 124,940 | | | | 48,690 | | | | 97,380 | |
| Karl Tragl3 Former Executive Vice President and Group President, Engineered Products and Solutions | | | | 76,680 | | | | 157,870 | | | | 181,740 | | Current Executive Officers as a Group4: | | | | 714,896 | | | | 420,460 | | | | 840,920 | |
| Current Executive Officers as a Group: | | | | 1,090,914 | | | | 648,316 | | | | 1,296,632 | | Current Non-Executive Directors as a Group: | | | | 234,792 | | | | N/A | | | | N/A | |
| Non-Executive Directors as a Group: | | | | 88,203 | | | | 0 | | | | 0 | | All Employees who are not Executive Officers, as a Group: | | | | 10,137,325 | | | | 383,580 | | | | 767,160 | |
| All Employees who are not Executive Officers, as a Group: | | | | 12,326,435 | | | | 1,076,333 | | | | 2,152,666 | |
| Plan Category | | | | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | | | | Weighted- average exercise price of outstanding options, warrants and rights (b) | | | | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |
| Equity compensation plans approved by security holders1 | | | | | | | $ | | | | | ||
| Equity compensation plans not approved by security holders | | | | — | | | | — | | | | — | |
| Total | | | | | | | $ | | | | |
| Air Products and Chemicals | | | Entergy | | | NRG Energy | |
| American Electric Power | | | FirstEnergy | | | Occidental Petroleum | |
| Arrow Electronics | | | Goodyear Tire & Rubber | | | Oshkosh | |
| Avnet | | | | | Parker Hannifin | | |
| Ball | | | | | Praxair | | |
| BorgWarner | | | | | Rockwell Automation | | |
| | | | | Stanley Black & Decker | | ||
| | | | | Stryker | | ||
| | | ||||||
| | Textron | | |||||
| Eastman Chemical | | | | | Thermo Fisher Scientific | | |
| Eaton | | | | | United States Steel | | |
| Ecolab | | | | | Whirlpool | | |
| Edison International | | | | | | |
| ($ in millions) | | | | Year ended | | ||||||||||
| | | | | December 31, 2018 | | | | December 31, 2017 | | ||||||
| Engineered Products and Solutions: | | | | | | | | | | | | | | | |
| Third-party sales | | | | | $ | 6,316 | | | | | | $ | 5,943 | | |
| Segment operating profit | | | | | $ | 891 | | | | | | $ | 964 | | |
| Segment operating profit margin | | | | | | 14.1% | | | | | | | 16.2% | | |
| Global Rolled Products: | | | | | | | | | | | | | | | |
| Third-party sales | | | | | $ | 5,604 | | | | | | $ | 5,000 | | |
| Intersegment sales | | | | | $ | 160 | | | | | | $ | 148 | | |
| Segment operating profit | | | | | $ | 386 | | | | | | $ | 424 | | |
| Segment operating profit margin | | | | | | 6.9% | | | | | | | 8.5% | | |
| Transportation and Construction Solutions: | | | | | | | | | | | | | | | |
| Third-party sales | | | | | $ | 2,126 | | | | | | $ | 2,011 | | |
| Segment operating profit | | | | | $ | 304 | | | | | | $ | 290 | | |
| Segment operating profit margin | | | | | | 14.3% | | | | | | | 14.4% | | |
| Reconciliation of Total segment operating profit to Consolidated income before taxes: | | | | | | | | | | | | | | | |
| Total segment operating profit | | | | | $ | 1,581 | | | | | | $ | 1,678 | | |
| Unallocated amounts: | | | | | | | | | | | | | | | |
| Restructuring and other charges | | | | | | (9) | | | | | | | (165) | | |
| Impairment of goodwill | | | | | | — | | | | | | | (719) | | |
| Corporate expense | | | | | | (247) | | | | | | | (314) | | |
| Consolidated operating income | | | | | | 1,325 | | | | | | | 480 | | |
| Interest expense | | | | | | (378) | | | | | | | (496) | | |
| Other income (expense), net | | | | | | (79) | | | | | | | 486 | | |
| Consolidated income before income taxes | | | | | $ | 868 | | | | | | $ | 470 | | |
|
| (in millions, except per-share amounts) | | | | Year ended | | ||||||||||
| | | | | December 31, 2017 | | | | December 31, 2016 | | ||||||
| Net loss attributable to Arconic | | | | | $ | (74) | | | | | | $ | (941) | | |
| Discontinued operations1 | | | | | | — | | | | | | | (121) | | |
| Special items: | | | | | | | | | | | | | | | |
| Restructuring and other charges | | | | | | 165 | | | | | | | 155 | | |
| Discrete tax items2 | | | | | | 223 | | | | | | | 1,290 | | |
| Other special items3 | | | | | | 264 | | | | | | | 196 | | |
| Tax impact4 | | | | | | 40 | | | | | | | (74) | | |
| Net income attributable to Arconic – as adjusted | | | | | $ | 618 | | | | | | $ | 505 | | |
| Diluted EPS: | | | | | | | | | | | | | | | |
| Net loss attributable to Arconic common shareholders | | | | | $ | (0.28) | | | | | | $ | (2.31) | | |
| Net income attributable to Arconic common shareholders – as adjusted | | | | | $ | 1.22 | | | | | | $ | 0.98 | | |
| (in millions, except per-share amounts) | | | | Year ended | | ||||||||||
| | | | | December 31, 2018 | | | | December 31, 2017 | | ||||||
| Net income (loss) | | | | | | $642 | | | | | | | $(74) | | |
| Diluted earnings (loss) per share (EPS) | | | | | | $1.30 | | | | | | | $(0.28) | | |
| Special items: | | | | | | | | | | | | | | | |
| Restructuring and other charges | | | | | | 9 | | | | | | | 165 | | |
| Discrete tax items1 | | | | | | (15) | | | | | | | 223 | | |
| Other special items2 | | | | | | 59 | | | | | | | 264 | | |
| Tax impact3 | | | | | | (19) | | | | | | | 40 | | |
| Net income excluding Special items | | | | | | $676 | | | | | | | $618 | | |
| Diluted EPS excluding Special items | | | | | | $1.36 | | | | | | | $1.22 | | |
| Average number of shares – diluted EPS excluding Special items4 | | | | | | 502,627,363 | | | | | | | 471,472,729 | | |
| ($ in millions) | | | | Year ended | | ||||||||||
| | | | | December 31, 2018 | | | | December 31, 2017 | | ||||||
| Cash provided from (used for) operations | | | | | $ | 217 | | | | | | $ | (39) | | |
| Cash receipts from sold receivables1 | | | | | | 1,016 | | | | | | | 792 | | |
| Capital expenditures | | | | | | (768) | | | | | | | (596) | | |
| Adjusted free cash flow | | | | | $ | 465 | | | | | | $ | 157 | | |
|
| ($ in millions) | | | | Year ended | | ||||||||||
| | | | | December 31, 2018 | | | | December 31, 2017 | | ||||||
| Operating income | | | | | $ | 1,325 | | | | | | $ | 480 | | |
| Special items: | | | | | | | | | | | | | | | |
| Restructuring and other charges | | | | | | 9 | | | | | | | 165 | | |
| Impairment of goodwill | | | | | | — | | | | | | | 719 | | |
| Separation costs | | | | | | — | | | | | | | 18 | | |
| Proxy, advisory and governance-related costs | | | | | | — | | | | | | | 58 | | |
| Delaware reincorporation costs | | | | | | — | | | | | | | 3 | | |
| Legal and other advisory costs related to Grenfell Tower | | | | | | 18 | | | | | | | 14 | | |
| Strategy and portfolio review costs | | | | | | 7 | | | | | | | — | | |
| Settlements of certain customer claims primarily related to product introductions | | | | | | 38 | | | | | | | — | | |
| Operating income excluding Special items | | | | | $ | 1,397 | | | | | | $ | 1,457 | | |
| Adjustment for incentive compensation1 | | | | | | (6) | | | | | | | n/a | | |
| Operating income excluding Special items – as adjusted for incentive compensation | | | | | $ | 1,391 | | | | | | | n/a | | |
| ($ in millions) | | | | Year ended December 31, 2018 | | |||
| Operating income | | | | | $ | 1,325 | | |
| Special items: | | | | | | | | |
| Restructuring and other charges | | | | | | 9 | | |
| Legal and other advisory costs related to Grenfell Tower | | | | | | 18 | | |
| Strategy and portfolio review costs | | | | | | 7 | | |
| Settlements of certain customer claims primarily related to product introductions | | | | | | 38 | | |
| Operating income excluding Special items | | | | | $ | 1,397 | | |
| Add: Depreciation and amortization | | | | | | 576 | | |
| Less: Capital expenditures | | | | | | (768) | | |
| Less: Change in Receivables from customers, less allowances | | | | | | (12) | | |
| Less: Change in Deferred purchase program | | | | | | (47) | | |
| Less: Change in Inventories | | | | | | (12) | | |
| Add: Change in Accounts payable, trade | | | | | | 290 | | |
| Controllable Free Cash Flow | | | | | $ | 1,424 | | |
| Adjustment for incentive compensation1 | | | | | | (9) | | |
| Controllable Free Cash Flow – as adjusted for incentive compensation | | | | | $ | 1,415 | | |
| ($ in millions) | | | | Year ended December 31, 2018 | | |||
| Sales | | | | | $ | 14,014 | | |
| Adjustment for performance-based restricted share units1 | | | | | | 62 | | |
| Revenue – as adjusted for performance-based restricted share units | | | | | $ | 14,076 | | |
|
| ($ in millions) | | | | Year ended | | ($ in millions) | | | | Year ended December 31, 2018 | | |||||||||||||
| | | | | December 31, 2017 | | | | December 31, 2016 | | Net income | | | | | $ | 642 | | | ||||||
| Net loss attributable to Arconic | | | | | $ | (74) | | | | | | $ | (941) | | | Add: | | | | | | | | |
| Discontinued operations1 | | | | | | — | | | | | | | (121) | | | Provision for income taxes | | | | | | 226 | | |
| Loss from continuing operations after income taxes and noncontrolling interests | | | | | | (74) | | | | | | | (1,062) | | | Other expense (income), net | | | | | | 79 | | |
| Add: | | | | | | | | | | | | | | | | Interest expense | | | | | | 378 | | |
| Provision for income taxes | | | | | | 544 | | | | | | | 1,476 | | | Restructuring and other charges | | | | | | 9 | | |
| Other income, net | | | | | | (640) | | | | | | | (94) | | | Provision for depreciation and amortization | | | | | | 576 | | |
| Interest expense | | | | | | 496 | | | | | | | 499 | | | Consolidated adjusted EBITDA | | | | | $ | 1,910 | | |
| Restructuring and other charges | | | | | | 165 | | | | | | | 155 | | | Add: | | | | | | | | |
| Impairment of goodwill | | | | | | 719 | | | | | | | — | | | Settlements of certain customer claims primarily related to product introductions | | | | | | 38 | | |
| Provision for depreciation and amortization | | | | | | 551 | | | | | | | 535 | | | Strategy and portfolio review costs | | | | | | 7 | | |
| Consolidated adjusted EBITDA | | | | | $ | 1,761 | | | | | | $ | 1,509 | | | Legal and other advisory costs related to Grenfell Tower | | | | | | 18 | | |
| Add: | | | | | | | | | | | | | | | | Consolidated adjusted EBITDA, excluding Special items | | | | | $ | 1,973 | | |
| Separation costs | | | | | | 18 | | | | | | | 193 | | | Sales | | | | | $ | 14,014 | | |
| Proxy, advisory and governance-related costs | | | | | | 58 | | | | | | | — | | | Adjusted EBITDA margin | | | | | | 13.6% | | |
| Delaware reincorporation costs | | | | | | 3 | | | | | | | — | | | Adjusted EBITDA margin, excluding Special items | | | | | | 14.1% | | |
| Legal and other advisory costs related to Grenfell Tower | | | | | | 14 | | | | | | | — | | | Adjustment for performance-based restricted share units1 | | | | | | (0.1)% | | |
| Consolidated adjusted EBITDA, excluding special items | | | | | $ | 1,854 | | | | | | $ | 1,702 | | | Adjusted EBITDA margin, excluding Special items – as adjusted for incentive compensation | | | | | | 14.0% | | |
| Sales | | | | | $ | 12,960 | | | | | | $ | 12,394 | | | | ||||||||
| Adjusted EBITDA margin | | | | | | 13.6% | | | | | | | 12.2% | | | |||||||||
| Adjusted EBITDA margin, excluding special items | | | | | | 14.3% | | | | | | | 13.7% | | |
| ($ in millions) | | | | Year ended | | ||||||||||
| | | | | December 31, 2017 | | | | December 31, 2016 | | ||||||
| Sales | | | | | $ | 12,960 | | | | | | $ | 12,394 | | |
| Selling, general administrative, and other expenses (SG&A) | | | | | | 731 | | | | | | | 942 | | |
| SG&A % of sales | | | | | | 5.6% | | | | | | | 7.6% | | |
| Special items: | | | | | | | | | | | | | | | |
| Separation costs | | | | | | 18 | | | | | | | 193 | | |
| Proxy, advisory and governance-related costs | | | | | | 58 | | | | | | | — | | |
| Delaware reincorporation costs | | | | | | 3 | | | | | | | — | | |
| Legal and other advisory costs related to Grenfell Tower | | | | | | 14 | | | | | | | — | | |
| Adjusted SG&A excluding special items | | | | | $ | 638 | | | | | | $ | 749 | | |
| Adjusted SG&A excluding special items as a % of sales | | | | | | 4.9% | | | | | | | 6.1% | | |
| ($ in millions, except per metric ton amounts) | | | | Year ended | | ||||||||||
| | | | | December 31, 2017 | | | | December 31, 2016 | | ||||||
| Engineered Products and Solutions | | | | | | | | | | | | | | | |
| Adjusted EBITDA | | | | | $ | 1,224 | | | | | | $ | 1,195 | | |
| Third-party sales | | | | | $ | 5,935 | | | | | | $ | 5,728 | | |
| Adjusted EBITDA Margin | | | | | | 20.6% | | | | | | | 20.9% | | |
| Global Rolled Products1 | | | | | | | | | | | | | | | |
| Adjusted EBITDA | | | | | $ | 599 | | | | | | $ | 577 | | |
| Total shipments2 (thousand metric tons) (kmt) | | | | | | 1,566 | | | | | | | 1,587 | | |
| Adjusted EBITDA/Total shipments ($ per metric ton) | | | | | $ | 383 | | | | | | $ | 364 | | |
| Third-party sales | | | | | $ | 4,992 | | | | | | $ | 4,864 | | |
| Adjusted EBITDA Margin | | | | | | 12.0% | | | | | | | 11.9% | | |
| Transportation and Construction Solutions | | | | | | | | | | | | | | | |
| Adjusted EBITDA | | | | | $ | 321 | | | | | | $ | 291 | | |
| Third-party sales | | | | | $ | 1,985 | | | | | | $ | 1,802 | | |
| Adjusted EBITDA Margin | | | | | | 16.2% | | | | | | | 16.1% | | |
| Combined Segment | | | | | | | | | | | | | | | |
| Combined segment adjusted EBITDA | | | | | $ | 2,144 | | | | | | $ | 2,063 | | |
| Combined segment third-party sales | | | | | $ | 12,912 | | | | | | $ | 12,394 | | |
| Combined segment adjusted EBITDA margin | | | | | | 16.6% | | | | | | | 16.6% | | |
| ($ in millions) | | | | Year ended | | ||||||||||
| | | | | December 31, 2017 | | | | December 31, 2016 | | ||||||
| Combined segment adjusted EBITDA1 | | | | | $ | 2,144 | | | | | | $ | 2,063 | | |
| Unallocated amounts: | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | | | | (551) | | | | | | | (535) | | |
| Restructuring and other charges | | | | | | (165) | | | | | | | (155) | | |
| Impairment of goodwill | | | | | | (719) | | | | | | | — | | |
| Impact of LIFO | | | | | | (110) | | | | | | | (18) | | |
| Metal price lag | | | | | | 72 | | | | | | | 27 | | |
| Corporate expense | | | | | | (274) | | | | | | | (454) | | |
| Other | | | | | | (71) | | | | | | | (109) | | |
| Operating income | | | | | $ | 326 | | | | | | $ | 819 | | |
| Other income, net2 | | | | | | 640 | | | | | | | 94 | | |
| Interest expense3 | | | | | | (496) | | | | | | | (499) | | |
| Income taxes | | | | | | (544) | | | | | | | (1,476) | | |
| Discontinued operations4 | | | | | | — | | | | | | | 121 | | |
| Consolidated net loss attributable to Arconic | | | | | $ | (74) | | | | | | $ | (941) | | |
|
| ($ in millions) | | | | Year ended December 31, 2017 | | |||
| Sales | | | | | $ | 12,960 | | |
| Cost of goods sold | | | | | | 10,357 | | |
| Selling, general administrative, and other expense | | | | | | 731 | | |
| Research and development expenses | | | | | | 111 | | |
| Provision for depreciation and amortization | | | | | | 551 | | |
| EBIT | | | | | $ | 1,210 | | |
| Adjustments for incentive compensation1 | | | | | | 105 | | |
| EBIT – as adjusted for incentive compensation | | | | | $ | 1,315 | | |
|
| ($ in millions) | | | | Year ended December 31, 2017 | | |||
| Cash from operations | | | | | $ | 701 | | |
| Capital expenditures | | | | | | (596) | | |
| Free cash flow | | | | | $ | 105 | | |
| Adjustments for incentive compensation1 | | | | | $ | 178 | | |
| Free cash flow – as adjusted for incentive compensation | | | | | $ | 283 | | |
|
| ($ in millions) | | | | Year ended December 31, 2017 | | |||
| Sales | | | | | $ | 12,960 | | |
| Adjustments for performance-based restricted share units1 | | | | | | (68) | | |
| Revenue – as adjusted for performance-based restricted share units | | | | | $ | 12,892 | | |
|
| ($ in millions) | | | | Year ended December 31, 2017 | | |||
| Net loss attributable to Arconic | | | | | $ | (74) | | |
| Special items1 | | | | | | 692 | | |
| Net income attributable to Arconic – as adjusted | | | | | $ | 618 | | |
|
| | | | | December 31, 2017 | | |||
| Net Assets: | | | | | | | | |
| Add: Receivables from customers, less allowances | | | | | $ | 1,035 | | |
| Add: Deferred purchase program2 | | | | | | 187 | | |
| Add: Inventories | | | | | | 2,480 | | |
| Less: Accounts payable, trade | | | | | | 1,839 | | |
| Working capital | | | | | | 1,863 | | |
| Properties, plants, and equipment, net | | | | | | 5,594 | | |
| Net assets – total | | | | | $ | 7,457 | | |
| RONA | | | | | | 8.3% | | |
| Adjustment for incentive compensation3 | | | | | | 0.1% | | |
| RONA – as adjusted for incentive compensation | | | | | | 8.4% | | |
|
| ($ in millions) | | | | Year ended December 31, 2018 | | |||
| Net income | | | | | $ | 642 | | |
| Special items1 | | | | | | 34 | | |
| Net income excluding Special items | | | | | | 676 | | |
|
| Net Assets: | | | | December 31, 2018 | | |||
| Add: Receivables from customers, less allowances | | | | | $ | 1,047 | | |
| Add: Deferred purchase program2 | | | | | | 234 | | |
| Add: Inventories | | | | | | 2,492 | | |
| Less: Accounts payable, trade | | | | | | 2,129 | | |
| Working capital | | | | | | 1,644 | | |
| Properties, plants, and equipment, net (PP&E) | | | | | | 5,704 | | |
| Net assets - total | | | | | $ | 7,348 | | |
| RONA | | | | | | 9.2% | | |
| Adjustment for performance-based restricted share units3 | | | | | | (0.1)% | | |
| RONA – as adjusted for incentive compensation | | | | | | 9.1% | | |
|