Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Entity Registrant Name | ARCONIC CORPORATION | |
Entity Central Index Key | 0001790982 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 109,377,065 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-2745636 | |
Entity Address, Address Line One | 201 Isabella Street, | |
Entity Address, Address Line Two | Suite 400, | |
Entity Address, City or Town | Pittsburgh, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15212-5872 | |
City Area Code | 412) | |
Local Phone Number | 992-2500 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ARNC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-39162 |
Statement of Combined Operation
Statement of Combined Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total sales | $ 1,801 | $ 1,187 | $ 3,476 | $ 2,798 |
Cost of goods sold (exclusive of expenses below) | 1,567 | 1,051 | 2,998 | 2,396 |
Selling, general administrative, and other expenses | 61 | 55 | 120 | 135 |
Research and development expenses | 9 | 8 | 17 | 19 |
Provision for depreciation and amortization | 62 | 68 | 125 | 128 |
Restructuring and other charges (E) | 597 | 77 | 598 | 58 |
Operating (loss) income | (495) | (72) | (382) | 62 |
Interest expense | 25 | 40 | 48 | 75 |
Other expenses, net | 15 | 16 | 37 | 42 |
Loss before income taxes | (535) | (128) | (467) | (55) |
Benefit for income taxes | (108) | (32) | (92) | (5) |
Net loss | (427) | (96) | (375) | (50) |
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net loss attributable to Arconic Corporation | $ (427) | $ (96) | $ (375) | $ (50) |
Earnings Per Share Attributable to Arconic Corporation Common Stockholders | ||||
Basic | $ (3.89) | $ (0.88) | $ (3.41) | $ (0.46) |
Diluted | $ (3.89) | $ (0.88) | $ (3.41) | $ (0.46) |
Statement of Combined Comprehen
Statement of Combined Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net loss | $ (427) | $ (96) | $ (375) | $ (50) |
Other comprehensive income, net of tax | ||||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 567 | 36 | 592 | 61 |
Foreign currency translation adjustments | 13 | 5 | 6 | 5 |
Net change in unrecognized losses on cash flow hedges | (14) | (7) | (36) | (7) |
Total Other comprehensive income, net of tax | 566 | 34 | 562 | 59 |
Comprehensive income (loss) | 139 | (62) | 187 | 9 |
Arconic Corporation | ||||
Net loss | (427) | (96) | (375) | (50) |
Other comprehensive income, net of tax | ||||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 567 | 36 | 592 | 61 |
Foreign currency translation adjustments | 13 | 5 | 6 | 5 |
Net change in unrecognized losses on cash flow hedges | (14) | (7) | (36) | (7) |
Total Other comprehensive income, net of tax | 566 | 34 | 562 | 59 |
Comprehensive income (loss) | 139 | (62) | 187 | 9 |
Noncontrolling interest | ||||
Net loss | 0 | 0 | 0 | 0 |
Other comprehensive income, net of tax | ||||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Net change in unrecognized losses on cash flow hedges | 0 | 0 | 0 | 0 |
Total Other comprehensive income, net of tax | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 540 | $ 787 |
Receivables from customers, less allowances of $1 in both 2021 and 2020 | 828 | 631 |
Other receivables | 190 | 128 |
Inventories | 1,397 | 1,043 |
Prepaid expenses and other current assets | 63 | 53 |
Total current assets | 3,018 | 2,642 |
Properties, plants, and equipment | 7,432 | 7,409 |
Less: accumulated depreciation and amortization | 4,802 | 4,697 |
Properties, plants, and equipment, net | 2,630 | 2,712 |
Goodwill | 391 | 390 |
Operating lease right-of-use assets | 136 | 144 |
Deferred income taxes | 273 | 329 |
Other noncurrent assets | 95 | 97 |
Total assets | 6,543 | 6,314 |
Current liabilities: | ||
Accounts Payable, Trade, Current | 1,427 | 1,106 |
Accrued compensation and retirement costs | 127 | 118 |
Taxes, including income taxes | 42 | 33 |
Environmental remediation | 75 | 90 |
Operating lease liabilities | 36 | 36 |
Other current liabilities | 143 | 90 |
Total current liabilities | 1,850 | 1,473 |
Long-term debt | 1,593 | 1,278 |
Accrued pension benefits | 737 | 1,343 |
Accrued other postretirement benefits | 459 | 479 |
Environmental remediation | 60 | 66 |
Operating lease liabilities | 103 | 111 |
Deferred income taxes | 14 | 15 |
Other noncurrent liabilities and deferred credits | 99 | 102 |
Total liabilities | 4,915 | 4,867 |
Contingencies and commitments | ||
Arconic Corporation stockholders’ equity: | ||
Common stock | 1 | 1 |
Additional capital | 3,351 | 3,348 |
Accumulated deficit | (530) | (155) |
Treasury stock (J) | (9) | 0 |
Accumulated other comprehensive loss | (1,199) | (1,761) |
Total Arconic Corporation stockholders’ equity | 1,614 | 1,433 |
Noncontrolling interest | 14 | 14 |
Total equity | 1,628 | 1,447 |
Total liabilities and equity | $ 6,543 | $ 6,314 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 1 | $ 1 |
Statement of Combined Cash Flow
Statement of Combined Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Activities | ||
Net loss | $ (375) | $ (50) |
Adjustments to reconcile net loss to cash used for operations: | ||
Depreciation and amortization | 125 | 128 |
Deferred income taxes | (113) | 50 |
Restructuring and other charges | 598 | 58 |
Non-service costs — Pension and OPEB | 40 | 39 |
Stock-based compensation | 7 | 12 |
Amortization of debt issuance costs | 1 | 21 |
Other | 15 | 2 |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | ||
(Increase) in receivables | (247) | (184) |
(Increase) Decrease in inventories | (357) | 115 |
(Increase) in prepaid expenses and other current assets | (10) | (25) |
Increase (Decrease) in accounts payable, trade | 323 | (334) |
(Decrease) in accrued expenses | (34) | (92) |
Increase in taxes, including income taxes | 14 | 54 |
Pension contributions | (453) | (44) |
(Increase) Decrease in noncurrent assets | (4) | 21 |
Increase in noncurrent liabilities | 9 | 7 |
Cash used for operations | (461) | (222) |
Financing Activities | ||
Net transfers from former parent company | 0 | 216 |
Payments for Separation Transaction | (728) | |
Additions to debt (original maturities greater than three months) | 319 | 2,400 |
Debt issuance costs | (5) | (57) |
Payments on debt (original maturities greater than three months) (N) | 0 | (1,100) |
Repurchases of common stock (J) | (9) | 0 |
Other | 17 | 0 |
Cash provided from financing activities | 288 | 731 |
Investing Activities | ||
Capital expenditures | (72) | (87) |
Proceeds from the sale of assets and businesses (O) | (2) | 102 |
Cash (used for) provided from investing activities | (74) | 15 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 0 | (1) |
Net change in cash and cash equivalents and restricted cash | (247) | 523 |
Cash and cash equivalents and restricted cash at beginning of year | 787 | 72 |
Cash and cash equivalents and restricted cash at end of period | $ 540 | $ 595 |
Statement of Changes in Combine
Statement of Changes in Combined Equity - USD ($) $ in Millions | Total | Parent Company net investment | Common stock | Additional capital | Accumulated deficit | Accumulated other comprehensive (loss) income | Noncontrolling interest | Treasury Stock |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 2,973 | $ 2,664 | $ 0 | $ 0 | $ 0 | $ 295 | $ 14 | $ 0 |
Net loss | (50) | 46 | (96) | 0 | ||||
Other comprehensive income | 59 | 59 | 0 | |||||
Separation payment to former parent company (A) | 728 | 728 | ||||||
Separation-related adjustments | 316 | (2,548) | 3,314 | (450) | ||||
Issuance of common stock | 0 | 1 | (1) | |||||
Stock-based compensation | 5 | 5 | ||||||
Establishment of additional defined benefit plans | (1,403) | 349 | (1,752) | |||||
Change in ParentCo contribution | 217 | 217 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,857 | 3,276 | 0 | 0 | 0 | (1,432) | 13 | 0 |
Net loss | (96) | (96) | 0 | |||||
Other comprehensive income | 34 | 34 | 0 | |||||
Separation payment to former parent company (A) | 728 | 728 | ||||||
Separation-related adjustments | 316 | (2,548) | 3,314 | (450) | ||||
Issuance of common stock | 0 | 1 | (1) | |||||
Stock-based compensation | 5 | 5 | ||||||
Other | 1 | 1 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,389 | 0 | 1 | 3,318 | (96) | (1,848) | 14 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,447 | 0 | 1 | 3,348 | (155) | (1,761) | 14 | 0 |
Net loss | (375) | (375) | 0 | |||||
Other comprehensive income | 562 | 562 | 0 | |||||
Treasury Stock, Value, Acquired, Cost Method | (9) | 9 | ||||||
Stock-based compensation | 7 | 7 | ||||||
Other | (4) | (4) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,490 | 0 | 1 | 3,343 | (103) | (1,765) | 14 | 0 |
Net loss | (427) | (427) | 0 | |||||
Other comprehensive income | 566 | 566 | 0 | |||||
Treasury Stock, Value, Acquired, Cost Method | (9) | 9 | ||||||
Stock-based compensation | 5 | 5 | ||||||
Other | 3 | 3 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,628 | $ 0 | $ 1 | $ 3,351 | $ (530) | $ (1,199) | $ 14 | $ (9) |
The Separation and Basis of Pre
The Separation and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Separation and Basis of Presentation | The Separation and Basis of Presentation The interim Consolidated Financial Statements of Arconic Corporation and its subsidiaries (“Arconic” or the “Company”) are unaudited. These Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The 2020 year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). This Form 10-Q report should be read in conjunction with Arconic’s Annual Report on Form 10-K for the year ended December 31, 2020, which includes all disclosures required by GAAP. In accordance with GAAP, certain situations require management to make estimates based on judgments and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates upon subsequent resolution of identified matters. References to “ParentCo” refer to Arconic Inc., a Delaware corporation, and its consolidated subsidiaries (through March 31, 2020, at which time it was renamed Howmet Aerospace Inc. (“Howmet”)). Change in Inventory Accounting Principle. Effective July 1, 2020, the Company changed its inventory cost method to average cost for all U.S. inventories previously carried at last-in, first-out (LIFO) cost. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented in the accompanying Consolidated Financial Statements. See Note L for additional information. Statement of Consolidated Cash Flows. In preparing the Statement of Consolidated Cash Flows for the nine months ended September 30, 2020, management identified a misclassification related to the non-cash portion of properties, plants, and equipment additions. This non-cash portion is the result of the timing difference that exists between when the Company records such additions as assets on its Consolidated Balance Sheet and when such additions have been paid in cash. As a result, the amount of (Decrease) in accounts payable, trade previously reported in Cash used for operations for each of the three months ended March 31, 2020 and the six months ended June 30, 2020 was overstated by $35 and $43, respectively, and the amount of Capital expenditures previously reported in Cash provided from investing activities for each of the three months ended March 31, 2020 and the six months ended June 30, 2020 was understated by $35 and $43, respectively. Accordingly, the amounts for (Decrease) in accounts payable, trade and Capital expenditures on the accompanying Statement of Consolidated Cash Flows for the six months ended June 30, 2020 were revised. Coronavirus. Our operations and financial results have been, and may continue to be, adversely affected by the coronavirus (COVID-19) pandemic. As a result of the COVID-19 pandemic, several of our automotive and aerospace customers temporarily suspended operations at different points throughout 2020. While many of our customers have resumed operations as it relates to the COVID-19 pandemic, we are unable to estimate with certainty at this time the status, frequency, or duration of any potential reoccurrences of customer shutdowns, or the duration or extent of resumed operations. Due to the impacts of the COVID-19 pandemic on our customers, we are experiencing, and expect to continue experiencing, lower demand and volume for certain of our products. These trends may lead to charges, impairments, and other adverse financial impacts over time, including but not limited to the recoverability of goodwill and long-lived assets and the realizability of deferred tax assets. The impact on our business, results of operations, financial condition, liquidity, and/or cash flows will be magnified if the disruption from the COVID-19 pandemic continues for an extended period. The Separation. On February 8, 2019, ParentCo announced that its Board of Directors approved a plan to separate into two standalone, publicly-traded companies (the “Separation”). The spin-off company, later named Arconic Corporation, was to include the rolled aluminum products, aluminum extrusions, and architectural products operations of ParentCo, as well as the Latin America extrusions operations sold in April 2018, (collectively, the “Arconic Corporation Businesses”). The existing publicly-traded company, ParentCo, was to continue to own the engine products, engineered structures, fastening systems, and forged wheels operations (collectively, the “Howmet Aerospace Businesses”). The Separation was subject to a number of conditions, including, but not limited to: final approval by ParentCo’s Board of Directors (see below); receipt of an opinion of legal counsel (received on March 31, 2020) regarding the qualification of the distribution, together with certain related transactions, as a “reorganization” within the meaning of Sections 335 and 368(a)(1)(D) of the U.S. Internal Revenue Code (i.e., a transaction that is generally tax-free for U.S. federal income tax purposes); and the U.S. Securities and Exchange Commission (the “SEC”) declaring effective a Registration Statement on Form 10, as amended, filed with the SEC on February 13, 2020 (effectiveness was declared by the SEC on February 13, 2020). On February 5, 2020, ParentCo’s Board of Directors approved the completion of the Separation by means of a pro rata distribution by ParentCo of all of the outstanding shares of Arconic common stock to ParentCo common stockholders of record as of the close of business on March 19, 2020 (the “Record Date”). At the time of the Separation, ParentCo common stockholders were to receive one share of Arconic common stock for every four shares of ParentCo common stock (the “Separation Ratio”) held as of the Record Date (ParentCo common stockholders were to receive cash in lieu of fractional shares). In connection with the Separation, as of March 31, 2020, Arconic and Howmet entered into several agreements to implement the legal and structural separation between the two companies; govern the relationship between Arconic and Howmet after the completion of the Separation; and allocate between Arconic and Howmet various assets, liabilities, and obligations, including, among other things, employee benefits, environmental liabilities, intellectual property, and tax-related assets and liabilities. These agreements included a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement, and certain Patent, Know-How, Trade Secret License and Trademark License Agreements. The Separation and Distribution Agreement identified the assets to be transferred, the liabilities to be assumed, and the contracts to be transferred to each of Arconic and Howmet as part of the Separation, and provided for when and how these transfers and assumptions were to occur. On April 1, 2020 (the “Separation Date”), the Separation was completed and became effective at 12:01 a.m. Eastern Daylight Time. To effect the Separation, ParentCo undertook a series of transactions to separate the net assets and certain legal entities of ParentCo, resulting in a cash payment of $728 to ParentCo by Arconic from a portion of the aggregate net proceeds of previously executed financing arrangements (see 2020 Activity in Note N ). In connection with the Separation, 109,021,376 shares of Arconic common stock were distributed to ParentCo stockholders. This was determined by applying the Separation Ratio to the 436,085,504 shares of ParentCo’s outstanding common stock as of the Record Date. “Regular-way” trading of Arconic’s common stock began with the opening of the New York Stock Exchange on April 1, 2020 under the ticker symbol “ARNC.” Arconic’s common stock has a par value of $0.01 per share. ParentCo incurred costs to evaluate, plan, and execute the Separation, and Arconic was allocated a pro rata portion of these costs based on segment revenue (see Cost Allocations below). ParentCo recognized $38 in the 2020 six-month period for such costs, of which $18 was allocated to Arconic. The allocated amount was included in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations. Principles of Consolidation. The Company’s Consolidated Financial Statements include the accounts of Arconic and companies in which Arconic has a controlling interest. Intercompany transactions have been eliminated. Management evaluates whether an Arconic entity or interest is a variable interest entity and whether The Company is the primary beneficiary. Consolidation is required if both of these criteria are met. Arconic does not have any variable interest entities requiring consolidation. Prior to the Separation Date, Arconic did not operate as a separate, standalone entity. Arconic’s operations were included in ParentCo’s financial results. Accordingly, for all periods prior to the Separation Date, the accompanying Consolidated Financial Statements were prepared from ParentCo’s historical accounting records and were presented on a standalone basis as if the Arconic Corporation Businesses had been conducted independently from ParentCo. Such Consolidated Financial Statements include the historical operations that were considered to comprise the Arconic Corporation Businesses, as well as certain assets and liabilities that were historically held at ParentCo’s corporate level but were specifically identifiable or otherwise attributable to Arconic. ParentCo’s net investment in these operations was reflected as Parent Company net investment on the Company’s Consolidated Financial Statements. All significant transactions and accounts within Arconic were eliminated. All significant intercompany transactions between ParentCo and Arconic were included within Parent Company net investment on Arconic’s Consolidated Financial Statements. Cost Allocations. The description and information on cost allocations is applicable for all periods included in the Company’s Consolidated Financial Statements prior to the Separation Date. Arconic’s Consolidated Financial Statements include general corporate expenses of ParentCo that were not historically charged to the Arconic Corporation Businesses for certain support functions that were provided on a centralized basis, such as expenses related to finance, audit, legal, information technology, human resources, communications, compliance, facilities, employee benefits and compensation, and research and development activities. These general corporate expenses were included on the accompanying Statement of Consolidated Operations within Cost of goods sold, Selling, general administrative and other expenses, and Research and development expenses. These expenses were allocated to Arconic on the basis of direct usage when identifiable, with the remainder allocated based on the Arconic Corporation Businesses’ segment revenue as a percentage of ParentCo’s total segment revenue, as reported in the respective periods. All external debt not directly attributable to the Arconic Corporation Businesses was excluded from the Company’s Consolidated Balance Sheet. Financing costs related to these debt obligations were allocated to Arconic based on the ratio of capital invested by ParentCo in the Arconic Corporation Businesses to the total capital invested by ParentCo in both the Arconic Corporation Businesses and the Howmet Aerospace Businesses, and were included on the accompanying Statement of Consolidated Operations within Interest expense. The following table reflects the allocations described above: Six months ended June 30, 2020 Cost of goods sold $ — Selling, general administrative, and other expenses* 25 Research and development expenses — Provision for depreciation and amortization 1 Restructuring and other charges ( E ) 2 Interest expense 28 Other (income), net ( F ) (5) _____________________ * In the 2020 six-month period, amount includes an allocation of $18 for costs incurred by ParentCo associated with the Separation (see above). Management believes the assumptions regarding the allocation of ParentCo’s general corporate expenses and financing costs were reasonable. Nevertheless, the Company’s Consolidated Financial Statements may not include all of the actual expenses that would have been incurred and may not reflect Arconic’s consolidated results of operations, financial position, and cash flows had it been a standalone company during the periods prior to the Separation Date. Actual costs that would have been incurred if Arconic had been a standalone company would depend on multiple factors, including organizational structure, capital structure, and strategic decisions made in various areas, including information technology and infrastructure. Transactions between Arconic and ParentCo, including sales to the Howmet Aerospace Businesses, were considered to be effectively settled for cash at the time the transaction was recorded. The total net effect of the settlement of these transactions was reflected on the accompanying Statement of Consolidated Cash Flows as a financing activity and on Arconic’s Consolidated Balance Sheet as Parent Company net investment. Cash Management. The description and information on cash management is applicable for all periods included in the Company’s Consolidated Financial Statements prior to the Separation Date. Cash was managed centrally with certain net earnings reinvested locally and working capital requirements met from existing liquid funds. Accordingly, the cash and cash equivalents held by ParentCo at the corporate level were not attributed to Arconic for any of the periods presented prior to the Separation Date. Only cash amounts specifically attributable to Arconic were reflected in the Company’s Consolidated Balance Sheet. Transfers of cash, both to and from ParentCo’s centralized cash management system, were reflected as a component of Parent Company net investment on Arconic’s Consolidated Balance Sheet and as a financing activity on the accompanying Statement of Consolidated Cash Flows. ParentCo had an arrangement with several financial institutions to sell certain customer receivables without recourse on a revolving basis. The sale of such receivables was completed through the use of a bankruptcy-remote special-purpose entity, which was a consolidated subsidiary of ParentCo. In connection with this arrangement, in all periods prior to January 1, 2020, certain of Arconic’s customer receivables were sold on a revolving basis to this bankruptcy-remote subsidiary of ParentCo; these sales were reflected as a component of Parent Company net investment on Arconic’s Consolidated Balance Sheet. As of December 31, 2019, the amount of Arconic’s outstanding customer receivables sold to ParentCo’s subsidiary was $281. Effective January 2, 2020, in preparation for the Separation, ParentCo’s arrangement was amended to no longer include customer receivables associated with the Arconic Corporation Businesses, as well as to remove previously included customer receivables related to the Arconic Corporation Businesses not yet collected as of January 2, 2020. Accordingly, uncollected customer receivables of $281 related to the Arconic Corporation Businesses were removed from the program and the right to collect and receive the cash from the customer was returned to Arconic. ParentCo participated in several accounts payable settlement arrangements with certain vendors and third-party intermediaries. These arrangements provided that, at the vendor’s request, the third-party intermediary advance the amount of the scheduled payment to the vendor, less an appropriate discount, before the scheduled payment date and ParentCo make payment to the third-party intermediary on the date stipulated in accordance with the commercial terms negotiated with its vendors. In connection with these arrangements, certain of Arconic’s accounts payable were settled, at the vendor’s request, before the scheduled payment date; these settlements were reflected as a component of Parent Company net investment on Arconic’s Consolidated Balance Sheet. As of December 31, 2019, the amount of Arconic’s accounts payables settled under such arrangements that had yet to be extinguished between ParentCo and third-party intermediaries was $1. |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Guidance | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Recently Adopted and Recently Issued Accounting Guidance | Recently Adopted and Recently Issued Accounting Guidance Adopted On January 1, 2021, Arconic adopted changes issued by the Financial Accounting Standards Board (FASB) to accounting for income taxes. The FASB issued this guidance to simplify various aspects related to the accounting for income taxes as part of the overall initiative to reduce complexity in accounting standards. These changes include the removal of certain exceptions and the simplification of several provisions, including: requiring an entity to recognize tax that is partially based on income, such as franchise tax, as income-based tax and account for additional amounts incurred as non-income based tax; requiring an entity to evaluate when a step up in tax basis of goodwill should be considered part of the original business combination or a separate transaction; and requiring an entity to reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The adoption of this guidance did not have a material impact on the Consolidated Financial Statements. The Company will need to continue to consider this guidance in future periods. Issued In March 2020, the FASB issued guidance that provides optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. These expedients and exceptions may be used when applying GAAP, if certain criteria are met, to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of such reform. The purpose of this guidance is to provide relief to entities from experiencing unintended accounting and/or financial reporting outcomes or consequences due to reference rate reform. This guidance became effective immediately on March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022, after which time the expedients and exceptions expire. In January 2021, the FASB issued clarifying guidance to specify that certain of the optional expedients and exceptions apply to derivatives that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This additional guidance may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively in the manner previously described for the guidance issued on March 12, 2020. As of June 30, 2021, Arconic has not experienced any unintended outcomes or consequences of reference rate reform that would necessitate the adoption of this guidance. Additionally, the Company will not need to consider the application of this guidance related to its credit agreement, which is scheduled to mature on May 13, 2025 and provides a credit facility that is referenced to LIBOR in certain borrowing situations, as the terms of such agreement currently provide for a replacement rate if LIBOR is discontinued by the end of 2021 as expected. That said, management will continue to closely monitor all potential instances of reference rate reform to determine if adoption of this guidance becomes necessary in the future. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table disaggregates revenue by major end market served. Differences between segment totals and consolidated Arconic are in Corporate. Second quarter ended June 30, Rolled Building and Extrusions Total 2021 Ground Transportation $ 610 $ — $ 24 $ 634 Building and Construction 51 257 — 308 Packaging 276 — — 276 Aerospace 124 — 27 151 Industrial Products and Other 413 — 19 432 Total end-market revenue $ 1,474 $ 257 $ 70 $ 1,801 2020 Ground Transportation $ 250 $ — $ 7 $ 257 Building and Construction 33 230 — 263 Packaging 195 — — 195 Aerospace 173 — 64 237 Industrial Products and Other 229 — 10 239 Total end-market revenue $ 880 $ 230 $ 81 $ 1,191 Six months ended June 30, Rolled Building and Extrusions Total 2021 Ground Transportation $ 1,247 $ — $ 49 $ 1,296 Building and Construction 102 493 — 595 Packaging 495 — — 495 Aerospace 233 — 56 289 Industrial Products and Other 761 — 40 801 Total end-market revenue $ 2,838 $ 493 $ 145 $ 3,476 2020 Ground Transportation $ 749 $ — $ 37 $ 786 Building and Construction 68 486 — 554 Packaging 373 — — 373 Aerospace 398 — 139 537 Industrial Products and Other 514 — 38 552 Total end-market revenue $ 2,102 $ 486 $ 214 $ 2,802 |
Segment and Related Information
Segment and Related Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information Arconic’s profit or loss measure for its reportable segments is Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization). Effective in the third quarter of 2020, management refined the Company’s Segment Adjusted EBITDA measure to remove the impact of metal price lag (see footnote 2 to the Segment Adjusted EBITDA reconciliation below). This change was made to further enhance the transparency and visibility of the underlying operating performance of each segment by removing the volatility associated with metal prices. The Company calculates Segment Adjusted EBITDA as Total sales (third-party and intersegment) minus each of (i) Cost of goods sold, (ii) Selling, general administrative, and other expenses, and (iii) Research and development expenses, plus Stock-based compensation expense and Metal price lag. Arconic’s Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies’ reportable segments. Also, effective July 1, 2020, the Company changed its inventory cost method to average cost for all U.S. inventories previously carried at LIFO cost. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented in the accompanying Consolidated Financial Statements. See Note L for additional information. Segment information for all prior periods presented was recast to reflect the updated measure of segment profit or loss and the change in inventory cost method. The operating results of Arconic’s reportable segments were as follows (differences between segment totals and the Company’s consolidated totals for line items not reconciled are in Corporate): Second quarter ended June 30, Rolled Building and Extrusions Total 2021 Sales: Third-party sales $ 1,474 $ 257 $ 70 $ 1,801 Intersegment sales 10 — — 10 Total sales $ 1,484 $ 257 $ 70 $ 1,811 Segment Adjusted EBITDA $ 173 $ 35 $ (8) $ 200 Provision for depreciation and amortization $ 49 $ 5 $ 5 $ 59 2020 Sales: Third-party sales $ 880 $ 230 $ 81 $ 1,191 Intersegment sales 4 — — 4 Total sales $ 884 $ 230 $ 81 $ 1,195 Segment Adjusted EBITDA $ 85 $ 37 $ (14) $ 108 Provision for depreciation and amortization $ 53 $ 5 $ 6 $ 64 Six months ended June 30, Rolled Building and Extrusions Total 2021 Sales: Third-party sales $ 2,838 $ 493 $ 145 $ 3,476 Intersegment sales 17 — — 17 Total sales $ 2,855 $ 493 $ 145 $ 3,493 Segment Adjusted EBITDA $ 338 $ 63 $ (12) $ 389 Provision for depreciation and amortization $ 97 $ 9 $ 11 $ 117 2020 Sales: Third-party sales $ 2,102 $ 486 $ 214 $ 2,802 Intersegment sales 11 — — 11 Total sales $ 2,113 $ 486 $ 214 $ 2,813 Segment Adjusted EBITDA $ 250 $ 67 $ (6) $ 311 Provision for depreciation and amortization $ 99 $ 9 $ 12 $ 120 The following table reconciles total Segment Adjusted EBITDA to consolidated net loss attributable to Arconic Corporation: Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Total Segment Adjusted EBITDA $ 200 $ 108 $ 389 $ 311 Unallocated amounts: Corporate expenses (1) (10) (7) (19) (9) Stock-based compensation expense (5) (5) (7) (12) Metal price lag (2) (11) (10) (6) (14) Provision for depreciation and amortization (62) (68) (125) (128) Restructuring and other charges (3) ( E ) (597) (77) (598) (58) Other (4) (10) (13) (16) (28) Operating (loss) income (495) (72) (382) 62 Interest expense (25) (40) (48) (75) Other expenses, net ( F ) (15) (16) (37) (42) Benefit for income taxes ( H ) 108 32 92 5 Net income attributable to noncontrolling interest — — — — Consolidated net loss attributable to Arconic Corporation $ (427) $ (96) $ (375) $ (50) ________________ (1) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities. The amount presented for the 2020 six-month period includes an allocation of ParentCo’s corporate expenses, including research and development expenses, for the portion of the period prior to the Separation Date (see Cost Allocations in Note A ). (2) Metal price lag represents the financial impact of the timing difference between when aluminum prices included in Sales are recognized and when aluminum purchase prices included in Cost of goods sold are realized. This adjustment aims to remove the effect of the volatility in metal prices and the calculation of this impact considers applicable metal hedging transactions. (3) Restructuring and other charges includes a charge for the settlement of certain employee retirement benefits of $568 in the 2021 second quarter and six-month period and $55 in the 2020 second quarter and six-month period (see Note G ). (4) Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on the Company’s Statement of Consolidated Operations that are not included in Segment Adjusted EBITDA. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges In the 2021 second quarter and six-month period, Arconic recorded Restructuring and other charges of $597 and $598, respectively, which were comprised of the following components: a $568 charge for the settlement of certain employee retirement benefits (see Note G ); a $34 charge for the impairment of several buildings and equipment due to management's decision to abandon these assets located at the Company’s primary research and development facility; a $7 benefit for the settlement of a legacy tax matter related to Brazil; a $1 and $2, respectively, credit for the reversal of reserves established in prior periods (see below); a $1 additional loss (six-month period) on the sale of an aluminum rolling mill in Brazil (see Itapissuma in Note O ); and a $3 and $4, respectively, net charge for other items, including layoff costs associated with approximately 115 employees in the Extrusions segment. In the 2020 second quarter and six-month period, Arconic recorded Restructuring and other charges of $77 and $58, respectively, which were comprised of the following components: a $55 charge for the settlement of certain employee retirement benefits (see Note G ); a $25 net gain (six-month period) related to the sales of an extrusions plant in South Korea and an aluminum rolling mill in Brazil (see Note O ); a $17 charge for layoff costs associated with the separation of approximately 410 employees across the Company in response to the impact of the COVID-19 pandemic; a $12 credit for the reversal of reserves established in prior periods, including $5 related to an environmental matter; an $11 charge for costs, of which $8 is for layoff costs associated with approximately 140 employees, related to the planned closure and related reorganizations of several small facilities in the Building and Construction Systems and Extrusions segments; a $4 charge for legacy non-income tax matters related to Brazil; a $2 charge (six-month period) for an allocation of ParentCo’s corporate restructuring activity (see Cost Allocations in Note A ); and a $2 and $6, respectively, net charge for other items. As of June 30, 2021, the total expected employee separations related to actions initiated in the 2020 second quarter were 430. The reduction of 120 was due to employees initially identified for separation accepting other positions within the Company, natural attrition, and other events that occurred in the second half of 2020 and/or first half of 2021. Accordingly, the Company reduced its estimated layoff costs associated with these actions by $7, of which $2 were reflected as reversals in the 2021 six-month period (see above). The Company does not include Restructuring and other charges in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Rolled Products $ — $ 7 $ 1 $ 16 Building and Construction Systems — 5 (1) 6 Extrusions 2 3 3 (28) Segment total 2 15 3 (6) Corporate 595 62 595 64 $ 597 $ 77 $ 598 $ 58 As of June 30, 2021, approximately 35 of the 115 employees associated with 2021 restructuring programs, approximately 465 of the 500 (previously 520) employees associated with 2020 restructuring programs, and approximately 360 of the 370 employees associated with 2019 restructuring programs were separated. The total number of employees related to the 2020 restructuring programs was updated to reflect employees initially identified for separation accepting other positions within the Company and natural attrition. The remaining separations for the 2021, 2020, and 2019 restructuring programs are expected to be completed between the remainder of 2021 and 2022. In the 2021 second quarter and six-month period, Arconic made cash payments of $1 (both periods) against layoff reserves related to the 2021 restructuring programs, $1 and $4, respectively, against layoff reserves related to the 2020 restructuring programs, and $1 and $2, respectively, against layoff reserves related to the 2019 restructuring programs. Activity and reserve balances for restructuring charges were as follows: Layoff costs Other costs Total Reserve balances at December 31, 2019 $ 20 $ 1 $ 21 Separation-related adjustments (1) 2 — 2 Cash payments (24) (3) (27) Restructuring charges 23 4 27 Other (2) (8) (1) (9) Reserve balances at December 31, 2020 13 1 14 Cash payments (7) (2) (9) Restructuring charges 2 2 4 Other (2) (2) (1) (3) Reserve balances at June 30, 2021 (3) $ 6 $ — $ 6 _____________________ (1) Represents liabilities transferred from ParentCo on April 1, 2020 in connection with the Separation (see Note A ). (2) Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. (3) The remaining reserves are expected to be paid in cash during the remainder of 2021, with the exception of $1 that is expected to be paid in 2022 related to special termination benefits. |
Other Expenses (Income), Net
Other Expenses (Income), Net | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expenses (Income), Net | Other Expenses, Net Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Non-service costs — Pension and OPEB ( G ) $ 16 $ 18 $ 36 $ 39 Foreign currency (gains) losses, net (2) (5) — 8 Interest income — (2) — (4) Other, net 1 5 1 (1) $ 15 $ 16 $ 37 $ 42 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The components of net periodic benefit cost for defined benefit plans were as follows: Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Pension benefits Service cost $ 5 $ 5 $ 11 $ 10 Interest cost 16 28 33 54 Expected return on plan assets (27) (45) (60) (85) Recognized net actuarial loss 24 31 56 61 Amortization of prior service cost (benefit) — (1) — (1) Settlements (1) 568 55 568 55 Net periodic benefit cost (2) $ 586 $ 73 $ 608 $ 94 Other postretirement benefits Service cost $ 2 $ 1 $ 3 $ 2 Interest cost 2 4 5 8 Recognized net actuarial loss 3 1 5 3 Amortization of prior service benefit (2) — (3) (1) Net periodic benefit cost (2) $ 5 $ 6 $ 10 $ 12 __________________ (1) In the 2021 second quarter and six-month period, Settlements were due to the purchase of a group annuity contract ($549 – see U.S. Pension Plan Annuitization below) and the payment of lump-sum benefits ($19). (2) Service cost was included within Cost of goods sold, Settlements were included within Restructuring and other charges, and all other components were included in Other expenses, net on the accompanying Statement of Consolidated Operations. Pension Funding —The minimum required contributions to Arconic’s funded defined benefit pension plans in 2021 is estimated to be $192, of which $183 is for U.S. plans. In January 2021, the Company contributed a total of $200 to its two funded U.S. defined benefit pension plans, comprised of the estimated minimum required funding for 2021 of $183 and an additional $17. In April 2021, the Company contributed a total of $250 to its two funded U.S. defined benefit pension plans to maintain the funding level of the remaining plan obligations not transferred under a group annuity contract (see U.S. Pension Plan Annuitization below). U.S. Pension Plan Annuitization —In April 2021, Arconic purchased a group annuity contract to transfer the obligation to pay the remaining retirement benefits of approximately 8,400 participants in two U.S. defined benefit pension plans to an insurance company. In connection with this transaction, the Company contributed a total of $250 to the two plans to maintain the funding level of the remaining plan obligations not transferred. This contribution was funded with the net proceeds from a March 2021 debt offering (see 2021 Activity in Note N ). Prior to this action, these two plans had an aggregate of approximately 23,000 participants. This transaction represents a significant settlement event, and, as a result, the Company was required to complete a remeasurement of these two plans (generally completed on an annual basis as of December 31, 2020), including an interim actuarial valuation of the plan obligations. Accordingly, the weighted-average discount rate used in calculating the plan obligations increased to 3.10% as of April 30, 2021 from 2.54% as of December 31, 2020. The remeasurement resulted in a combined projected benefit obligation and fair value of plan assets of $3,337 and $2,790, respectively, as of April 30, 2021. From these amounts, the group annuity transaction resulted in the settlement of $995 in plan obligations and the transfer of $1,007 in plan assets. The remeasurement of these two plans, together with the annuitization, resulted in a $152 net decrease to Accrued pension benefits and a $117 (after-tax) net decrease to Accumulated other comprehensive loss (see Note K ) on the accompanying Consolidated Balance Sheet. Additionally, the annuitization resulted in the accelerated amortization of a portion of the existing net actuarial loss associated with these two plans in the amount of $549 ($423 after-tax). This amount was reclassified to earnings through Restructuring and other charges (see Note E ) from Accumulated other comprehensive loss (see Note K ). |
Income Taxes_
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Arconic’s year-to-date tax provision is comprised of the most recent estimated annual effective tax rate applied to year-to-date pretax ordinary income or loss. The tax impacts of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are recorded discretely in the interim period in which they occur. In addition, the tax provision is adjusted for the interim period impact of non-benefited pretax losses. For the 2021 six-month period, the estimated annual effective tax rate, before discrete items, applied to ordinary loss was 18.6%. This rate differs by 2.4 percentage points from the U.S. federal statutory rate of 21.0% primarily due to estimated U.S. tax on Global Intangible Low-Taxed Income, U.S. tax on foreign earnings, and non-deductible costs, partially offset by the state tax impact of domestic taxable losses. For the 2020 six-month period, the estimated annual effective tax rate, before discrete items, applied to ordinary loss was 105.5%. This rate differs by 84.5 percentage points from the U.S. federal statutory rate of 21.0% primarily due to non-benefitted foreign losses, the state tax impact of domestic taxable income, U.S. tax on foreign earnings, and nondeductible costs related to the Separation. The effective tax rate including discrete items was 20.2% and 19.7% in the 2021 second quarter and six-month period, respectively, and was 25.0% and 9.1% in the 2020 second quarter and six-month period, respectively. The following table details the components of Benefit for income taxes: Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Pretax ordinary loss at estimated annual effective tax rate $ (100) $ (135) $ (87) $ (58) Impact of change in estimated annual effective tax rate on previous quarter’s pretax income (6) 55 — — Interim period treatment of operational losses in foreign jurisdictions for which no tax benefit is recognized* (2) 48 (2) 49 Discrete items — — (3) 4 Benefit for income taxes $ (108) $ (32) $ (92) $ (5) __________________ * The interim period impact related to operational losses in foreign jurisdictions for which no tax benefit is recognized will reverse by the end of the calendar year. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (EPS) amounts are computed by dividing Net loss attributable to Arconic Corporation by the weighted-average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. Specific to Arconic, such share equivalents consist of outstanding employee stock awards (excluding out-of-the-money stock options – see below). For periods in which the Company generates net income, the diluted weighted-average number of shares include common share equivalents associated with outstanding employee stock awards. For periods in which the Company generates a net loss, common share equivalents are excluded from the diluted weighted-average number of shares as their effect is anti-dilutive. The share information used to compute basic and diluted EPS attributable to Arconic Corporation common stockholders was as follows (shares in millions): Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Weighted-average shares outstanding – basic 110.0 109.0 109.9 109.0 Dilutive share equivalents: Stock units — — — — Stock options — — — — Weighted-average shares outstanding – diluted 110.0 109.0 109.9 109.0 Anti-dilutive share equivalents: Stock units 3.2 2.6 3.3 1.3 Stock options*: In-the-money 0.2 — 0.1 — Out-of-the-money — — — — 3.4 2.6 3.4 1.3 ________________ |
Preferred and Common Stock
Preferred and Common Stock | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | Preferred and Common StockOn May 4, 2021, Arconic announced that its Board of Directors approved a share repurchase program authorizing the Company to repurchase shares of its outstanding common stock up to an aggregate transactional value of $300 over a two |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive (Loss) Income The following table details the activity of the three components that comprise Accumulated other comprehensive (loss) income for Arconic (such activity for Noncontrolling interest was immaterial for all periods presented): Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Pension and other postretirement benefits ( G ) Balance at beginning of period $ (1,766) $ (1,770) $ (1,791) $ (43) Establishment of additional defined benefit plans — — — (1,752) Separation-related adjustments ( A ) — (50) — (50) Other comprehensive income: Unrecognized net actuarial loss and prior service cost/benefit 145 (40) 144 (38) Tax (expense) benefit (33) 10 (33) 9 Total Other comprehensive income (loss) before reclassifications, net of tax 112 (30) 111 (29) Amortization of net actuarial loss and prior service cost/benefit (1) 593 86 626 117 Tax expense (2) (138) (20) (145) (27) Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 455 66 481 90 Total Other comprehensive income 567 36 592 61 Balance at end of period $ (1,199) $ (1,784) $ (1,199) $ (1,784) Foreign currency translation Balance at beginning of period $ 22 $ 338 $ 29 $ 338 Separation-related adjustments ( A ) — (396) — (396) Other comprehensive income: Foreign currency translation (3) 13 5 6 (17) Net amount reclassified to earnings from Accumulated other comprehensive income (3),(5) — — — 22 Total Other comprehensive income 13 5 6 5 Balance at end of period $ 35 $ (53) $ 35 $ (53) Cash flow hedges Balance at beginning of period $ (21) $ — $ 1 $ — Separation-related adjustments ( A ) — (4) — (4) Other comprehensive loss: Net change from periodic revaluations (59) 2 (94) 2 Tax benefit 14 — 22 — Total Other comprehensive (loss) income before reclassifications, net of tax (45) 2 (72) 2 Net amount reclassified to earnings (4) 40 (11) 47 (11) Tax (expense) benefit (2) (9) 2 (11) 2 Total amount reclassified from Accumulated other comprehensive income (loss), net of tax (5) 31 (9) 36 (9) Total Other comprehensive loss (14) (7) (36) (7) Balance at end of period $ (35) $ (11) $ (35) $ (11) Accumulated other comprehensive loss $ (1,199) $ (1,848) $ (1,199) $ (1,848) _____________________ (1) These amounts were included in the non-service component of net periodic benefit cost for pension and other postretirement benefits (see Note G ). In all periods presented, the respective amounts include accelerated amortization related to the settlement of certain employee retirement benefits. The accelerated amortization was $568 for the second quarter ended and six months ended June 30, 2021 and $55 for the second quarter ended and six months ended June 30, 2020 (see Note G ). (2) These amounts were reported in Benefit for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes. In the 2020 six-month period, the net amount reclassified to earnings was reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations related to the sale of certain foreign subsidiaries. (4) These amounts relate to aluminum contracts, a portion of which were reported in both Sales and Cost of goods sold on the accompanying Statement of Consolidated Operations. (5) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 4. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories June 30, 2021 December 31, 2020 Finished goods $ 363 $ 282 Work-in-process 889 635 Purchased raw materials 77 59 Operating supplies 68 67 $ 1,397 $ 1,043 Effective July 1, 2020, the Company changed its inventory cost method to average cost for all U.S. inventories previously carried at LIFO cost. Management determined that this change in accounting principle is preferable because the average cost method more closely reflects the physical flow of inventories, improves comparability of the Company’s operating results with its industry peers, and provides an increased level of consistency in the measurement of inventories in the Company’s consolidated financial statements. All non-U.S. inventories and a small portion of U.S. inventories were previously, and continue to be, measured using a combination of first in, first out (FIFO) and average cost methods. The effects of the change in accounting principle from LIFO to average cost have been retrospectively applied to all prior periods presented. This change resulted in an increase to Parent Company net investment of $245 as of January 1, 2020. Additionally, certain financial statement line items in each of the accompanying Statement of Consolidated Operations, Statement of Consolidated Comprehensive Income, and Statement of Consolidated Cash Flows for the 2020 second quarter and six-month period were recast as follows: As Previously Reported Effect of Change As Recast Statement of Consolidated Operations for the second quarter ended June 30, 2020: Cost of goods sold $ 1,046 $ 5 $ 1,051 Operating loss (67) (5) (72) Loss before income taxes (123) (5) (128) Benefit for income taxes (31) (1) (32) Net loss (92) (4) (96) Net loss attributable to Arconic Corporation (92) (4) (96) Earnings per share attributable to Arconic Corporation common stockholders: Basic $ (0.84) $ (0.04) $ (0.88) Diluted (0.84) (0.04) (0.88) Statement of Consolidated Operations for the six months ended June 30, 2020: Cost of goods sold $ 2,373 $ 23 $ 2,396 Operating income 85 (23) 62 Loss before income taxes (32) (23) (55) Benefit for income taxes — (5) (5) Net loss (32) (18) (50) Net loss attributable to Arconic Corporation (32) (18) (50) Earnings per share attributable to Arconic Corporation common shareholders: Basic $ (0.29) $ (0.17) $ (0.46) Diluted (0.29) (0.17) (0.46) As Previously Reported Effect of Change As Recast Statement of Consolidated Comprehensive Loss for the second quarter ended June 30, 2020: Comprehensive loss $ (58) $ (4) $ (62) Comprehensive loss attributable to Arconic Corporation (58) (4) (62) Statement of Consolidated Comprehensive Income for the six months ended June 30, 2020: Comprehensive income $ 27 $ (18) $ 9 Comprehensive income attributable to Arconic Corporation 27 (18) 9 Statement of Consolidated Cash Flows for the six months ended June 30, 2020: Net loss $ (32) $ (18) $ (50) Deferred income taxes 55 (5) 50 Decrease in inventories 92 23 115 |
Leases_
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Arconic Corporation leases certain land and buildings, plant equipment, vehicles, and computer equipment, which have been classified as operating leases. Operating lease cost, which includes short-term leases and variable lease payments and approximates cash paid, was $14 and $30 in the 2021 second quarter and six-month period, respectively, and $14 and $29 in the 2020 second quarter and six-month period, respectively. Right-of-use assets obtained in exchange for operating lease obligations were $10 in the 2021 six-month period and $32 in the 2020 six-month period. Future minimum contractual operating lease obligations were as follows: June 30, 2021 December 31, 2020 2021 $ 23 $ 43 2022 37 34 2023 29 26 2024 22 20 2025 17 16 Thereafter 41 41 Total lease payments $ 169 $ 180 Less: imputed interest 30 33 Present value of lease liabilities $ 139 $ 147 The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating leases at June 30, 2021 and December 31, 2020 was 6.3 years and 6.6 years, respectively, and 5.8% and 5.9%, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt 2021 Activity —On March 3, 2021, the Company completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for an additional $300 aggregate principal amount of 6.125% Senior Secured Second-Lien Notes due 2028 (the “Additional 2028 Notes”). The Additional 2028 Notes were issued under the indenture governing Arconic’s existing 6.125% Senior Secured Second-Lien Notes due 2028 (see 2020 Activity below). Other than with respect to the date of issuance and issue price, the Additional 2028 Notes are treated as a single series with and have the same terms as the referenced existing notes. The Additional 2028 Notes were sold at 106.25% of par (i.e., a premium) and, after reflecting a discount to the initial purchasers of the Additional 2028 Notes, the Company received $315 in net proceeds from the debt offering. Arconic used the net proceeds of this issuance to fund an annuitization of certain U.S. defined benefit pension plan obligations (see Note G ). The premium ($19) and costs to complete the financing ($5) were deferred and are being amortized to interest expense over the term of the Additional 2028 Notes. The amortization of the premium is reflected as a reduction to interest expense and the amortization of the costs to complete the financing is reflected as an addition to interest expense. Interest on the Additional 2028 Notes will be paid semi-annually in February and August, commencing August 15, 2021. 2020 Activity —In connection with the capital structure to be established at the time of the Separation, Arconic secured $1,200 in third-party indebtedness. On February 7, 2020, the Company completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for $600 aggregate principal amount of 6.125% Senior Secured Second-Lien Notes due 2028 (the “2028 Notes”). Arconic received $593 in net proceeds from the debt offering reflecting a discount to the initial purchasers of the 2028 Notes. Also, on March 25, 2020, the Company entered into a credit agreement, which provided a $600 Senior Secured First-Lien Term Loan B Facility (variable rate and seven five The Company used a portion of the $1,168 in net proceeds from the aggregate indebtedness to make a $728 payment to ParentCo on April 1, 2020 to fund the transfer of certain net assets from ParentCo to Arconic in connection with the completion of the Separation (see Note A ). The payment to ParentCo was calculated as the difference between (i) the $1,168 of net proceeds from the aggregate indebtedness and (ii) the difference between a beginning cash balance at the Separation Date of $500, as provided for in the Separation and Distribution Agreement, and the amount of cash held by Arconic Corporation Businesses at March 31, 2020 ($60 – the sum of this amount and the aggregate indebtedness in (i) equals the sum of Cash and cash equivalents and Restricted cash on the Company’s Combined Balance Sheet as of March 31, 2020). On April 2, 2020, Arconic borrowed $500, which was subject to an interest rate equal to the sum of the three-month LIBOR plus a 2.0% applicable margin, under the Credit Facility. This borrowing was a proactive measure taken by the Company to bolster its liquidity and preserve financial flexibility in light of uncertainties resulting from the COVID-19 pandemic. On May 13, 2020, Arconic executed a refinancing of its existing Credit Agreement in order to provide improved financial flexibility. The Company completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for $700 aggregate principal amount of 6.0% Senior Secured First-Lien Notes due 2025 (the “2025 Notes”). Arconic received $691 in net proceeds from the debt offering reflecting a discount to the initial purchasers of the 2025 Notes. Additionally, the Company entered into a five-year credit agreement with a syndicate of lenders named therein and Deutsche Bank AG New York Branch, as administrative agent (the “ABL Credit Agreement”). The ABL Credit Agreement provides for a senior secured asset-based revolving credit facility in an aggregate principal amount of $800 (see ABL Credit Agreement below), including a letter of credit sub-facility and a swingline loan sub-facility (the “ABL Credit Facility”). In addition, the ABL Credit Facility includes an accordion feature allowing Arconic to request one or more increases to the revolving commitments in an aggregate principal amount up to $350. The Company used the net proceeds from the new indebtedness, together with cash on hand, to prepay in full the obligations outstanding under both the Term Loan ($600) and Credit Facility ($500) and to terminate in full the commitments under the Credit Agreement. Descriptions of the 2028 Notes, 2025 Notes, and ABL Credit Agreement are set forth in Note Q to the Consolidated Financial Statements in Part II Item 8 of Arconic’s Annual Report on Form 10-K for the year ended December 31, 2020 (filed on February 23, 2021). In connection with the issuance of the 2028 Notes and the execution of the Credit Agreement, the Company paid $42 in discounts to the initial purchasers and/or upfront fees and costs (the “debt issuance costs”), of which $30 was attributable to the Term Loan and the Credit Facility. The debt issuance costs were initially deferred and were being amortized to interest expense over the respective terms of the 2028 Notes, the Term Loan, and the Credit Facility. In connection with the issuance of the 2025 Notes and the execution of the ABL Credit Agreement, Arconic paid $15 in discounts to the initial purchasers and/or upfront fees and costs (the “new debt issuance costs”). As a result of applying both debt modification and debt extinguishment accounting, as appropriate based on the lender mix for each debt instrument, to the debt refinancing, the Company was required to write off $16 of the $30 in debt issuance costs and immediately expense $3 of the $15 in new debt issuance costs. This $19 was reported within Interest expense on the accompanying Statement of Consolidated Operations. The remaining $14 in debt issuance costs continued to be deferred and the remaining $12 in new debt issuance costs were deferred; both are being amortized to interest expense over the respective terms of the 2025 Notes and the ABL Credit Agreement. ABL Credit Agreement— Availability under the ABL Credit Facility is subject to a monthly borrowing base calculation, which, in general, is determined by applying a predetermined percentage to the amount of eligible accounts receivable and inventory, less customary reserves. As of June 30, 2021, the available balance was $785. Fair Value— Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: • Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3—Inputs that are both significant to the fair value measurement and unobservable. As of June 30, 2021 and December 31, 2020, the 2028 Notes and 2025 Notes had a combined carrying value of $1,593 and $1,278, respectively, and a combined fair value of $1,714 and $1,399, respectively. The fair value amounts for the 2028 Notes and 2025 Notes were based on quoted market prices for public debt and were classified in Level 2 of the fair value hierarchy. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Divestitures Itapissuma. On February 1, 2020, Arconic completed the sale of its aluminum rolling mill (aseptic foil and sheet products) in Itapissuma, Brazil to Companhia Brasileira de Alumínio for a net $46 in cash. In December 2020, the Company paid $4 in cash to Companhia Brasileira de Alumínio to settle certain working capital and other post-closing adjustments. Additionally, in June 2021, the Company paid $2 in cash to Companhia Brasileira de Alumínio to settle the remaining working capital and other post-closing adjustments. Arconic has recognized a cumulative loss of $60 (pretax) on this transaction, composed of the following: a charge of $53 in 2019 for the non-cash impairment of the carrying value (i.e., write-down to fair value) of the rolling mill’s net assets, primarily properties, plants, and equipment, as a result of entering into an agreement in August 2019 to sell this rolling mill; a charge of $6 in February 2020 for further necessary adjustments upon completion of the divestiture; and a charge of $1 in the 2021 first quarter for a then-proposed final settlement of the remaining post-closing adjustments and other items. Each of these amounts were recorded in Restructuring and other charges (see Note E ) on the Company’s Statement of Consolidated Operations in the respective reporting periods. This transaction is no longer subject to post-closing adjustments. Prior to the divestiture, this rolling mill’s operating results and assets and liabilities were reported in Arconic’s Rolled Products segment. The rolling mill generated third-party sales of $143 in 2019 and, at the time of divestiture, had approximately 500 employees. Changwon. On March 1, 2020, Arconic completed the sale of its hard alloy extrusions plant in South Korea to SeAH Besteel Corporation for a net $55 in cash, resulting in a gain of $31 (pretax), which was recorded in Restructuring and other charges (see Note E ) on the accompanying Statement of Consolidated Operations. The gain is net of a $6 write-off of related goodwill. In May 2020, the Company received an additional $1 in cash as a result of a post-closing adjustment, which was previously contemplated in the aforementioned gain. This transaction is no longer subject to post-closing adjustments. Prior to the divestiture, this plant’s operating results and assets and liabilities were reported in Arconic’s Extrusions segment. The extrusions plant generated third-party sales of $51 in 2019 and, at the time of divestiture, had approximately 160 employees. |
Contingencies and Commitments_
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Unless specifically described to the contrary, all matters within Note P are the full responsibility of Arconic pursuant to the Separation and Distribution Agreement (see Note A ). Additionally, the Separation and Distribution Agreement provides for cross-indemnities between the Company and Howmet for claims subject to indemnification. Contingencies Environmental Matters. Arconic participates in environmental assessments and cleanups at several locations. These include owned or operating facilities and adjoining properties, previously owned or operating facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. A liability is recorded for environmental remediation when a cleanup program becomes probable and the costs can be reasonably estimated. As assessments and cleanups proceed, the liability is adjusted based on progress made in determining the extent of remedial actions and related costs. The liability can change substantially due to factors such as, among others, the nature and extent of contamination, changes in remedial requirements, and technological changes. The Company’s remediation reserve balance was $135 and $156 (of which $75 and $90, respectively, was classified as a current liability) at June 30, 2021 and December 31, 2020, respectively, and reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. In the 2021 second quarter and six-month period, the remediation reserve was increased by $1. Payments related to remediation expenses applied against the reserve were $4 and $21 in the 2021 second quarter and six-month period, respectively, which include expenditures currently mandated, as well as those not required by any regulatory authority or third party. The change in the reserve in the 2021 six-month period also reflects a decrease of $1 for other items. The Separation and Distribution Agreement includes provisions for the assignment or allocation of environmental liabilities between Arconic and Howmet, including certain remediation obligations associated with environmental matters. In general, the respective parties are responsible for the environmental matters associated with their operations, and with the properties and other assets assigned to each. Additionally, the Separation and Distribution Agreement lists environmental matters with a shared responsibility between the two companies with an allocation of responsibility and the lead party responsible for management of each matter. For matters assigned to Arconic and Howmet under the Separation and Distribution Agreement, the companies have agreed to indemnify each other in whole or in part for environmental liabilities arising from operations prior to the Separation Date. The following description provides details regarding the current status of one reserve, which represents the majority of the Company’s total remediation reserve balance, related to an active Arconic site. Massena West, NY— Arconic has an ongoing remediation project related to the Grasse River, which is adjacent to the Company’s Massena plant site. Many years ago, it was determined that sediments and fish in the river contain varying levels of polychlorinated biphenyls (PCBs). The project, which was selected by the U.S. Environmental Protection Agency (EPA) in a Record of Decision issued in April 2013, is aimed at capping PCB contaminated sediments with concentration in excess of one part per million in the main channel of the river and dredging PCB contaminated sediments in the near-shore areas where total PCBs exceed one part per million. Arconic completed the final design phase of the project, which was approved by the EPA in March 2019. Following the EPA’s approval, the actual remediation fieldwork commenced. In June 2019, the Company increased the reserve balance by $25 due to changes required in the EPA-approved remedial design and post-construction monitoring. These changes were necessary due to several items, the majority of which related to navigation issues identified by a local seaway development company. Accordingly, the EPA requested an addendum to the final remedial design be submitted to address these issues. The proposed remedy is to dredge certain of the sediments originally identified for capping in the affected areas of the Grasse River, resulting in incremental project costs. The EPA approved the proposal in April 2020. As the project progresses, further changes to the reserve may be required due to factors such as, among others, additional changes in remedial requirements, increased site restoration costs, and incremental ongoing operation and maintenance costs. At June 30, 2021 and December 31, 2020, the reserve balance associated with this matter was $97 and $115, respectively. The majority of the remaining expenditures related to the project are expected to occur between the remainder of 2021 and 2022. Litigation. All references to ParentCo in the matters described under this section Litigation refer to Arconic Inc. only and do not include its subsidiaries, except as otherwise stated. Airbus Matters —In 2017, Airbus and various of its affiliates (“Airbus”) filed three separate confidential requests for arbitration against ParentCo and various of its then affiliates, one of which is Arconic Manufacturing (GB) Limited, an Arconic Corporation subsidiary, with the International Chamber of Commerce. Airbus specifically alleges that a defect exists in certain of our products sold to Airbus under various separate contracts. Airbus’s claims include claims of breach of certain alleged express and implied warranties and negligence. On June 12, 2020, Airbus filed its Second Memorial in the arbitration in which it claims damages attributed specifically to our products. In two of the three arbitrations, Airbus was seeking damages in excess of $200 and an order of indemnification with respect to conditional future losses; in the third of the arbitrations, Airbus is seeking an order of indemnification with respect to contingent future losses. A private and confidential arbitration hearing occurred in late October 2020 on two of the three requests for arbitration and on March 26, 2021, the Arbitral Panel issued final awards in those two arbitrations in favor of the Respondents (including Arconic Manufacturing (GB) Limited), rejecting Airbus’s claims and denying Airbus the relief sought. The hearing on the third request for arbitration was stayed. On June 1, 2021, the parties entered into a confidential agreement in settlement of all claims related to the matter. These proceedings are now fully resolved and closed. Federal Antimonopoly Service Of The Russian Federation Litigation —The Federal Antimonopoly Service of the Russian Federation (“FAS”) filed a lawsuit on March 17, 2020 with the Arbitrazh (State Commercial) Court of Samara Region against two of the Company’s subsidiaries, Arconic Rus Investment Holdings LLC (“LLC ARIH”) and AlTi Forge Holding Sarl (the “Arconic Russian Holding Companies”), naming Elliott Associates L.P., Elliott International L.P., and Elliot International Capital Advisors Inc. (“Elliott”) as third parties. Also named as interested parties are: Parent Co. and certain of its foreign subsidiaries; and Arconic Netherland B.V., the Company’s subsidiary that directly and indirectly owns LLC ARIH, Arconic SMZ JSC and JSC AlTi Forge (the “Arconic Russian Subsidiaries”). FAS alleges that Elliott indirectly acquired control over the Arconic Russian Subsidiaries when, in May 2019, directors who had previously been nominated by Elliott and appointed or elected to Parent Co.’s board of directors pursuant to certain settlement agreements among Parent Co. and Elliott constituted a majority of that board as a result of a reduction in the size of the board. FAS claims alleged non-compliance with Russian Federal Law No. 57-FZ, which governs foreign ownership of certain Russian companies and requires certain governmental approvals for a foreign investor to acquire control over strategically important Russian companies. On April 6, 2020, the Samara Court granted injunctions against the Arconic Russian Holding Companies prohibiting the taking of certain corporate governance actions, including with respect to: (i) the disposal of shares in the Arconic Russian Subsidiaries; and (ii) the making of certain decisions with respect to the Arconic Russian Subsidiaries, including decisions regarding the payment of dividends, placement of bonds, amendment of bylaws and internal documents, the appointment, change and compensation of the Arconic Russian Subsidiaries’ CEO, and the election of the Arconic Russian Subsidiaries’ board of directors. On April 29, 2020, the Arconic Russian Holding Companies simultaneously filed an appeal and motion to revoke the previously issued injunctions. Both the appeal and motion to revoke were denied. A hearing on the merits of the claim was scheduled for June 8, 2021 but was postponed until August 19, 2021. As a consequence of the alleged violation, FAS is seeking removal and exclusion of the Arconic Russian Holding Companies from the affairs of the Arconic Russian Subsidiaries, resulting in the deprivation of the benefits of their ownership interests in the Arconic Russian Subsidiaries, including the rights currently restricted in the injunctions granted on April 6, 2020. Due to the nature of this matter, geopolitical tensions between the U.S. and Russia could have a material adverse impact on our ability to obtain a favorable outcome in this matter, as well as our operations in Russia, which represented 12% of our sales in 2020. Given the preliminary nature of this matter and the uncertainty of litigation, we cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. Reynobond PE —On June 13, 2017, the Grenfell Tower in London, U.K. caught fire resulting in fatalities, injuries, and damage. A French subsidiary of Arconic Corporation (of ParentCo at that time), Arconic Architectural Products SAS (AAP SAS), supplied a product, Reynobond PE, to its customer, a cladding system fabricator, which used the product as one component of the overall cladding system on Grenfell Tower. The fabricator supplied its portion of the cladding system to the facade installer, who then completed and installed the system under the direction of the general contractor. Neither ParentCo nor AAP SAS was involved in the design or installation of the system used at the Grenfell Tower, nor did it have a role in any other aspect of the building’s refurbishment or original design. Regulatory investigations into the overall Grenfell Tower matter are being conducted, including a criminal investigation by the London Metropolitan Police Service (the “Police”), a Public Inquiry by the British government, and a consumer protection inquiry by a French public authority. The Public Inquiry was announced by the U.K. Prime Minister on June 15, 2017 and subsequently was authorized to examine the circumstances leading up to and surrounding the Grenfell Tower fire in order to make findings of fact and recommendations to the U.K. Government on matters such as the design, construction, and modification of the building, the role of relevant public authorities and contractors, the implications of the fire for the adequacy and enforcement of relevant regulations, arrangements in place for handling emergencies, and the handling of concerns from residents, among other things. Hearings for Phase 1 of the Public Inquiry began on May 21, 2018 and concluded on December 12, 2018. Phase 2 hearings of the Public Inquiry began in early 2020, following which a final report will be written and subsequently published. As Phase 2 of the public inquiry continues, the testimony has supported AAP SAS’s position that the choice of materials and the responsibility of ensuring compliance of the cladding system with relevant U.K. building code and regulations was with those individuals or entities who designed and installed the cladding system such as the architects, fabricators, contractors and building owners. The ongoing hearings in the U.K. have revealed serious doubts about whether these third parties had the necessary qualifications or expertise to carry out the refurbishment work at Grenfell Tower, adequately oversaw the process, conducted the required fire safety testing or analysis, or otherwise complied with their obligations under U.K. regulations. AAP SAS is participating as a Core Participant in the Public Inquiry and is also cooperating with the ongoing parallel investigation by the Police. Arconic Corporation does not sell and ParentCo previously stopped selling the PE product for architectural use on buildings. Given the preliminary nature of these investigations and the uncertainty of potential future litigation, Arconic Corporation cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. United Kingdom Litigation. Multiple claimant groups comprised of survivors and estates of decedents of the Grenfell Tower fire have filed claims in the U.K. arising from that fire, including as follows: • On June 12, 2020, four claimants represented by Birnberg Peirce Ltd filed suit against AAP SAS. • On June 12, 2020, two claimants represented by Howe & Co Solicitors filed suit against AAP SAS. • On June 26, 2020, three claimants represented by Russell-Cooke LLP filed suit against AAP SAS. • On December 23, 2020, several additional suits were filed by claimant groups comprised of survivors and estates of decedents. These suits were all filed against the same group of 23 defendants: AAP SAS, Arconic Corporation, Howmet Aerospace Inc., the Royal Borough of Kensington and Chelsea, the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd, the London Fire Commissioner, the UK Home Office, The Ministry of Housing, Communities and Local Government, Rydon Maintenance Ltd, Celotex Ltd, Saint-Gobain Construction Products UK Limited, Kingspan Insulation Limited, Kingspan Group PLC (suits have since been discontinued), Studio E Architects Ltd (In liquidation), Harley Facades Ltd, Harley Curtain Wall Limited (In liquidation), CEP Architectural Facades Ltd, Exova (U.K.) Ltd, CS Stokes & Associates Ltd, Artelia Projects UK Limited (suits have since been discontinued), Whirlpool UK Appliances Limited, Whirlpool Company Polska Sp.z.o.o. and Whirlpool Corporation. These suits include as follows (represent preliminary best estimates of claimants in each suit): ◦ Seven claimants represented by Deighton Pierce Glynn; ◦ Five claimants represented by SMQ Legal Services; ◦ Four claimants represented by Scott Moncrieff; ◦ Thirty-one (previously six) claimants represented by Saunders Law; ◦ Thirty-four (previously twenty-four) claimants represented by Russell Cooke LLP; ◦ Forty-seven (previously forty) claimants represented by Imran Khan & Partners; ◦ Sixty-one (previously sixty-seven) claimants represented by Howe & Co.; ◦ One hundred fourteen claimants represented by Hodge Jones and Allen Solicitor; ◦ Twenty-three (previously nineteen) claimants represented by Hickman & Rose; ◦ Five claimants represented by Duncan Lewis Solicitors; ◦ One hundred thirteen (previously one hundred eighteen) claimants represented by Birnberg Peirce; ◦ Three hundred forty-one claimants represented by Bindmans LLP; ◦ Seventy-six (previously eighty-two) claimants represented by Bhatt Murphy Ltd; and ◦ Twenty-seven claimants represented by Slater & Gordon. Multiple claimant groups comprised of emergency responders who attended the Grenfell Tower fire have also filed claims against AAP SAS arising from that fire, including as follows: • On June 11, 2020, 98 (previously 80) firefighters represented by Thompsons Solicitors filed suit against AAP SAS, as well as the Royal Borough of Kensington and Chelsea, the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd, Celotex Ltd, Exova (U.K.) Ltd, Rydon Maintenance Ltd, Studio E Architects Ltd, Harley Facades Ltd, CEP Architectural Facades Ltd, CS Stokes & Associates Ltd, and the London Fire Commissioner. Since then, another 7 (previously 5) firefighters have sought to be added to the suit. • On June 12, 2020, 36 (previously 27) police officers represented by Penningtons Manches Cooper LLP filed suit against AAP SAS, as well as the Royal Borough of Kensington and Chelsea, the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd, Celotex Ltd, Exova (U.K.) Ltd, Rydon Maintenance Ltd, Studio E Architects Ltd, Harley Facades Ltd, CEP Architectural Facades Ltd, CS Stokes & Associates Ltd, London Fire Commissioner, and the Commissioner of the Police of the Metropolis. Since then, some claimants have withdrawn and others have sought to be added to the suit. • On June 12, 2020, two firefighters represented by Pattinson and Brewer filed suit against AAP SAS, as well as the Royal Borough of Kensington and Chelsea, the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd, Celotex Ltd, Exova (U.K.) Ltd, Rydon Maintenance Ltd, Studio E Architects Ltd, Harley Facades Ltd, CEP Architectural Facades Ltd, CS Stokes & Associates Ltd, and the London Fire Commissioner. A third firefighter, also represented by Pattinson and Brewer, brought a claim against the same defendants on June 15, 2020. One of the original firefighter claimants has now withdrawn from the suit. On December 17, 2020, a claim was issued by the Royal Borough of Kensington and Chelsea and the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd against: (1) Whirlpool Company Polska Spolka z Organiczona; and (2) AAP SAS. The Claimants seek damages in respect of their own losses and/or a contribution to the extent that they are found to be liable by the London High Court for any losses arising out of the Grenfell Tower fire on June 14, 2017. All of these claims have been filed in the High Court in London. On October 2, 2020, the High Court ordered that: (a) the suits of the survivors and estates of decedents that were issued in June 2020 be stayed until a hearing scheduled by the High Court for June 9-10, 2021; and (b) that the suits of emergency responders be stayed until a hearing scheduled by the High Court for July 7-8, 2021. The hearing scheduled for June 9-10, 2021 was subsequently vacated by the Court. The above-mentioned suits brought by: (1) the survivors and estates of decedents; (2) the emergency responders; and (3) the Royal Borough of Kensington and Chelsea for contributions, were recently heard together at a procedural hearing on July 7-8, 2021, before Senior Master Fontaine. At the hearing, the Senior Master made several directions for the future management of the Grenfell Tower litigation, including staying all suits against Arconic Corporation and its affiliates until a directions hearing to be held on the first available date after May 3, 2022. The duration of the stay is intended to allow Arconic Corporation, along with several other co-defendants to the above-mentioned litigations, to engage in preliminary discussions with the claimants' legal representatives in an attempt to reach a mutually agreeable settlement. Given the preliminary nature of these matters and the uncertainty of litigation, Arconic Corporation cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome in any of the above-referenced disputes. Behrens et al. v. Arconic Inc. et al. On June 6, 2019, 247 plaintiffs comprised of survivors and estates of decedents of the Grenfell Tower fire filed a complaint against “Arconic Inc., Alcoa Inc., and Arconic Architectural Products, LLC” (collectively, for purposes of the description of such proceeding, the “ParentCo Defendants”), as well as Saint-Gobain Corporation, d/b/a Celotex and Whirlpool Corporation, in the Court of Common Pleas of Philadelphia County. The complaint alleges claims under Pennsylvania state law for products liability and wrongful death related to the fire. In particular, the plaintiffs allege that the ParentCo Defendants knowingly supplied a dangerous product (Reynobond PE) for installation on the Grenfell Tower despite knowing that Reynobond PE was unfit for use above a certain height. The ParentCo Defendants removed the case to the United States District Court for the Eastern District of Pennsylvania on June 19, 2019. On August 29, 2019, the ParentCo Defendants moved to dismiss the complaint on the bases, among other things, that: (i) the case should be heard in the United Kingdom, not the United States; (ii) there is no jurisdiction over necessary parties; and (iii) Pennsylvania product liability law does not apply to manufacture and sale of product overseas. On December 23, 2019, the Court issued an order denying the motion to dismiss the complaint on bases (ii) and (iii) suggesting a procedure for limited discovery followed by further briefing on those subjects. On September 16, 2020, the Court issued an order granting Defendants’ motion to dismiss on forum non conveniens grounds, subject to certain conditions, determining that the United Kingdom, and not the United States, is the appropriate place for plaintiffs to bring their case. Plaintiffs subsequently filed a motion for reconsideration, which the Court denied on November 23, 2020. Plaintiffs are appealing this judgment; ParentCo Defendants are cross-appealing one of the conditions. The briefing has now been completed and the parties are awaiting an oral argument date. Plaintiffs filed their opening appeal brief on March 8, 2021; Defendants opening brief was filed on April 21, 2021. Given the preliminary nature of this matter and the uncertainty of litigation, Arconic Corporation cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. Howard v. Arconic Inc. et al. A purported class action complaint related to the Grenfell Tower fire was filed on August 11, 2017 in the United States District Court for the Western District of Pennsylvania against ParentCo and Klaus Kleinfeld. A related purported class action complaint was filed in the United States District Court for the Western District of Pennsylvania on September 15, 2017, under the caption Sullivan v. Arconic Inc. et al. , against ParentCo, three former ParentCo executives, several current and former ParentCo directors, and banks that acted as underwriters for ParentCo’s September 18, 2014 preferred stock offering (the “Preferred Offering”). The plaintiff in Sullivan had previously filed a purported class action against the same defendants on July 18, 2017 in the Southern District of New York and, on August 25, 2017, voluntarily dismissed that action without prejudice. On February 7, 2018, on motion from certain putative class members, the court consolidated Howard and Sullivan , closed Sullivan , and appointed lead plaintiffs in the consolidated case. On April 9, 2018, the lead plaintiffs in the consolidated purported class action filed a consolidated amended complaint. The consolidated amended complaint alleged that the registration statement for the Preferred Offering contained false and misleading statements and omitted to state material information, including by allegedly failing to disclose material uncertainties and trends resulting from sales of Reynobond PE for unsafe uses and by allegedly expressing a belief that appropriate risk management and compliance programs had been adopted while concealing the risks posed by Reynobond PE sales. The consolidated amended complaint also alleged that between November 4, 2013 and June 23, 2017 ParentCo and Kleinfeld made false and misleading statements and failed to disclose material information about ParentCo’s commitment to safety, business and financial prospects, and the risks of the Reynobond PE product, including in ParentCo’s Form 10-Ks for the fiscal years ended December 31, 2013, 2014, 2015, and 2016, its Form 10-Qs and quarterly financial press releases from the fourth quarter of 2013 through the first quarter of 2017, its 2013, 2014, 2015, and 2016 Annual Reports, its 2016 Annual Highlights Report, and on its official website. The consolidated amended complaint sought, among other things, unspecified compensatory damages and an award of attorney and expert fees and expenses. On June 8, 2018, all defendants moved to dismiss the consolidated amended complaint for failure to state a claim. On June 21, 2019, the Court granted the defendants’ motion to dismiss in full, dismissing the consolidated amended complaint in its entirety without prejudice. On July 23, 2019, the lead plaintiffs filed a second amended complaint. The second amended complaint alleges generally the same claims as the consolidated amended complaint with certain additional allegations, as well as claims that the risk factors set forth in the registration statement for the Preferred Offering were inadequate and that certain additional statements in the sources identified above were misleading. The second amended complaint seeks, among other things, unspecified compensatory damages and an award of attorney and expert fees and expenses. On September 11, 2019, all defendants moved to dismiss the second amended complaint. Plaintiffs’ opposition to that motion was filed on November 1, 2019 and all defendants filed a reply brief on November 26, 2019. On June 22, 2020, counsel for Arconic Corporation and the individual defendants filed a letter apprising the Court of a recent decision by the Third Circuit and discussing its relevance to the pending motion to dismiss. Pursuant to an Order by the Court directing the plaintiffs to respond to this letter, the plaintiffs filed a letter response on July 9, 2020. On June 23, 2021, the Court granted in part and denied in part the defendants’ motion to dismiss the second amended complaint. The Court dismissed with prejudice plaintiffs’ claim against ParentCo, certain officers and directors and the underwriters based on the registration statement for the Preferred Offering, with the exception of one statement and only as to purchases made before October 23, 2015. In addition, plaintiffs’ claim based on ParentCo’s statements in other SEC filings, in product brochures, and on websites was dismissed in its entirety as to Kleinfeld and dismissed in part and allowed in part as to ParentCo. The Court also dismissed the control-person liability claims in their entirety. The parties stipulated to an August 12, 2021 deadline for defendants to file an answer to the second amended complaint in light of the Court’s partial dismissal. Given the preliminary nature of this matter and the uncertainty of litigation, Arconic Corporation cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. Raul v. Albaugh, et al. On June 22, 2018, a derivative complaint was filed nominally on behalf of ParentCo by a purported ParentCo stockholder against the then members of ParentCo’s Board of Directors and Klaus Kleinfeld and Ken Giacobbe, naming ParentCo as a nominal defendant, in the United States District Court for the District of Delaware. The complaint raises similar allegations as the consolidated amended complaint and second amended complaint in Howard , as well as allegations that the defendants improperly authorized the sale of Reynobond PE for unsafe uses, and asserts claims under Section 14(a) of the Securities Exchange Act of 1934, as amended, and Delaware state law. On July 13, 2018, the parties filed a stipulation agreeing to stay this case until the final resolution of the Howard case, the Grenfell Tower Public Inquiry in London, and the investigation by the Police and on July 23, 2018, the Court approved the stay. Given the preliminary nature of this matter and the uncertainty of litigation, Arconic Corporation cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. General. While Arconic Corporation believes that all the above referenced Reynobond PE cases are without merit and intends to challenge them vigorously, there can be no assurances regarding the ultimate resolution of these matters. General. In addition to the matters described above, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against Arconic, including those pertaining to environmental, product liability, safety and health, employment, tax, and antitrust matters. While the amounts claimed in these other matters may be substantial, the ultimate liability is not readily determinable because of the considerable uncertainties that exist. Accordingly, it is possible that the Company’s liquidity or results of operations in a reporting period could be materially affected by one or more of these other matters. However, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on Arconic’s results of operations, financial position or cash flows. |
Stockholders' Equity Note Disclosure | Preferred and Common StockOn May 4, 2021, Arconic announced that its Board of Directors approved a share repurchase program authorizing the Company to repurchase shares of its outstanding common stock up to an aggregate transactional value of $300 over a two |
Subsequent Events_
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsManagement evaluated all activity of Arconic and concluded that no subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Recent Accounting Guidance | Adopted On January 1, 2021, Arconic adopted changes issued by the Financial Accounting Standards Board (FASB) to accounting for income taxes. The FASB issued this guidance to simplify various aspects related to the accounting for income taxes as part of the overall initiative to reduce complexity in accounting standards. These changes include the removal of certain exceptions and the simplification of several provisions, including: requiring an entity to recognize tax that is partially based on income, such as franchise tax, as income-based tax and account for additional amounts incurred as non-income based tax; requiring an entity to evaluate when a step up in tax basis of goodwill should be considered part of the original business combination or a separate transaction; and requiring an entity to reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The adoption of this guidance did not have a material impact on the Consolidated Financial Statements. The Company will need to continue to consider this guidance in future periods. Issued In March 2020, the FASB issued guidance that provides optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. These expedients and exceptions may be used when applying GAAP, if certain criteria are met, to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of such reform. The purpose of this guidance is to provide relief to entities from experiencing unintended accounting and/or financial reporting outcomes or consequences due to reference rate reform. This guidance became effective immediately on March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022, after which time the expedients and exceptions expire. In January 2021, the FASB issued clarifying guidance to specify that certain of the optional expedients and exceptions apply to derivatives that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This additional guidance may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively in the manner previously described for the guidance issued on March 12, 2020. As of June 30, 2021, Arconic has not experienced any unintended outcomes or consequences of reference rate reform that would necessitate the adoption of this guidance. Additionally, the Company will not need to consider the application of this guidance related to its credit agreement, which is scheduled to mature on May 13, 2025 and provides a credit facility that is referenced to LIBOR in certain borrowing situations, as the terms of such agreement currently provide for a replacement rate if LIBOR is discontinued by the end of 2021 as expected. That said, management will continue to closely monitor all potential instances of reference rate reform to determine if adoption of this guidance becomes necessary in the future. |
Consolidation, Policy | Principles of Consolidation. The Company’s Consolidated Financial Statements include the accounts of Arconic and companies in which Arconic has a controlling interest. Intercompany transactions have been eliminated. Management evaluates whether an Arconic entity or interest is a variable interest entity and whether The Company is the primary beneficiary. Consolidation is required if both of these criteria are met. Arconic does not have any variable interest entities requiring consolidation. Prior to the Separation Date, Arconic did not operate as a separate, standalone entity. Arconic’s operations were included in ParentCo’s financial results. Accordingly, for all periods prior to the Separation Date, the accompanying Consolidated Financial Statements were prepared from ParentCo’s historical accounting records and were presented on a standalone basis as if the Arconic Corporation Businesses had been conducted independently from ParentCo. Such Consolidated Financial Statements include the historical operations that were considered to comprise the Arconic Corporation Businesses, as well as certain assets and liabilities that were historically held at ParentCo’s corporate level but were specifically identifiable or otherwise attributable to Arconic. ParentCo’s net investment in these operations was reflected as Parent Company net investment on the Company’s Consolidated Financial Statements. All significant transactions and accounts within Arconic were eliminated. All significant intercompany transactions between ParentCo and Arconic were included within Parent Company net investment on Arconic’s Consolidated Financial Statements. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy | Cost Allocations. The description and information on cost allocations is applicable for all periods included in the Company’s Consolidated Financial Statements prior to the Separation Date. Arconic’s Consolidated Financial Statements include general corporate expenses of ParentCo that were not historically charged to the Arconic Corporation Businesses for certain support functions that were provided on a centralized basis, such as expenses related to finance, audit, legal, information technology, human resources, communications, compliance, facilities, employee benefits and compensation, and research and development activities. These general corporate expenses were included on the accompanying Statement of Consolidated Operations within Cost of goods sold, Selling, general administrative and other expenses, and Research and development expenses. These expenses were allocated to Arconic on the basis of direct usage when identifiable, with the remainder allocated based on the Arconic Corporation Businesses’ segment revenue as a percentage of ParentCo’s total segment revenue, as reported in the respective periods. All external debt not directly attributable to the Arconic Corporation Businesses was excluded from the Company’s Consolidated Balance Sheet. Financing costs related to these debt obligations were allocated to Arconic based on the ratio of capital invested by ParentCo in the Arconic Corporation Businesses to the total capital invested by ParentCo in both the Arconic Corporation Businesses and the Howmet Aerospace Businesses, and were included on the accompanying Statement of Consolidated Operations within Interest expense. |
The Separation and Basis of P_2
The Separation and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Costs Allocations | The following table reflects the allocations described above: Six months ended June 30, 2020 Cost of goods sold $ — Selling, general administrative, and other expenses* 25 Research and development expenses — Provision for depreciation and amortization 1 Restructuring and other charges ( E ) 2 Interest expense 28 Other (income), net ( F ) (5) _____________________ * In the 2020 six-month period, amount includes an allocation of $18 for costs incurred by ParentCo associated with the Separation (see above). |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Major End Market Served | The following table disaggregates revenue by major end market served. Differences between segment totals and consolidated Arconic are in Corporate. Second quarter ended June 30, Rolled Building and Extrusions Total 2021 Ground Transportation $ 610 $ — $ 24 $ 634 Building and Construction 51 257 — 308 Packaging 276 — — 276 Aerospace 124 — 27 151 Industrial Products and Other 413 — 19 432 Total end-market revenue $ 1,474 $ 257 $ 70 $ 1,801 2020 Ground Transportation $ 250 $ — $ 7 $ 257 Building and Construction 33 230 — 263 Packaging 195 — — 195 Aerospace 173 — 64 237 Industrial Products and Other 229 — 10 239 Total end-market revenue $ 880 $ 230 $ 81 $ 1,191 Six months ended June 30, Rolled Building and Extrusions Total 2021 Ground Transportation $ 1,247 $ — $ 49 $ 1,296 Building and Construction 102 493 — 595 Packaging 495 — — 495 Aerospace 233 — 56 289 Industrial Products and Other 761 — 40 801 Total end-market revenue $ 2,838 $ 493 $ 145 $ 3,476 2020 Ground Transportation $ 749 $ — $ 37 $ 786 Building and Construction 68 486 — 554 Packaging 373 — — 373 Aerospace 398 — 139 537 Industrial Products and Other 514 — 38 552 Total end-market revenue $ 2,102 $ 486 $ 214 $ 2,802 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The operating results of Arconic’s reportable segments were as follows (differences between segment totals and the Company’s consolidated totals for line items not reconciled are in Corporate): Second quarter ended June 30, Rolled Building and Extrusions Total 2021 Sales: Third-party sales $ 1,474 $ 257 $ 70 $ 1,801 Intersegment sales 10 — — 10 Total sales $ 1,484 $ 257 $ 70 $ 1,811 Segment Adjusted EBITDA $ 173 $ 35 $ (8) $ 200 Provision for depreciation and amortization $ 49 $ 5 $ 5 $ 59 2020 Sales: Third-party sales $ 880 $ 230 $ 81 $ 1,191 Intersegment sales 4 — — 4 Total sales $ 884 $ 230 $ 81 $ 1,195 Segment Adjusted EBITDA $ 85 $ 37 $ (14) $ 108 Provision for depreciation and amortization $ 53 $ 5 $ 6 $ 64 Six months ended June 30, Rolled Building and Extrusions Total 2021 Sales: Third-party sales $ 2,838 $ 493 $ 145 $ 3,476 Intersegment sales 17 — — 17 Total sales $ 2,855 $ 493 $ 145 $ 3,493 Segment Adjusted EBITDA $ 338 $ 63 $ (12) $ 389 Provision for depreciation and amortization $ 97 $ 9 $ 11 $ 117 2020 Sales: Third-party sales $ 2,102 $ 486 $ 214 $ 2,802 Intersegment sales 11 — — 11 Total sales $ 2,113 $ 486 $ 214 $ 2,813 Segment Adjusted EBITDA $ 250 $ 67 $ (6) $ 311 Provision for depreciation and amortization $ 99 $ 9 $ 12 $ 120 The following table reconciles total Segment Adjusted EBITDA to consolidated net loss attributable to Arconic Corporation: Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Total Segment Adjusted EBITDA $ 200 $ 108 $ 389 $ 311 Unallocated amounts: Corporate expenses (1) (10) (7) (19) (9) Stock-based compensation expense (5) (5) (7) (12) Metal price lag (2) (11) (10) (6) (14) Provision for depreciation and amortization (62) (68) (125) (128) Restructuring and other charges (3) ( E ) (597) (77) (598) (58) Other (4) (10) (13) (16) (28) Operating (loss) income (495) (72) (382) 62 Interest expense (25) (40) (48) (75) Other expenses, net ( F ) (15) (16) (37) (42) Benefit for income taxes ( H ) 108 32 92 5 Net income attributable to noncontrolling interest — — — — Consolidated net loss attributable to Arconic Corporation $ (427) $ (96) $ (375) $ (50) ________________ (1) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities. The amount presented for the 2020 six-month period includes an allocation of ParentCo’s corporate expenses, including research and development expenses, for the portion of the period prior to the Separation Date (see Cost Allocations in Note A ). (2) Metal price lag represents the financial impact of the timing difference between when aluminum prices included in Sales are recognized and when aluminum purchase prices included in Cost of goods sold are realized. This adjustment aims to remove the effect of the volatility in metal prices and the calculation of this impact considers applicable metal hedging transactions. (3) Restructuring and other charges includes a charge for the settlement of certain employee retirement benefits of $568 in the 2021 second quarter and six-month period and $55 in the 2020 second quarter and six-month period (see Note G ). (4) Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on the Company’s Statement of Consolidated Operations that are not included in Segment Adjusted EBITDA. |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Segment | The Company does not include Restructuring and other charges in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Rolled Products $ — $ 7 $ 1 $ 16 Building and Construction Systems — 5 (1) 6 Extrusions 2 3 3 (28) Segment total 2 15 3 (6) Corporate 595 62 595 64 $ 597 $ 77 $ 598 $ 58 |
Schedule of Restructuring Reserve | Activity and reserve balances for restructuring charges were as follows: Layoff costs Other costs Total Reserve balances at December 31, 2019 $ 20 $ 1 $ 21 Separation-related adjustments (1) 2 — 2 Cash payments (24) (3) (27) Restructuring charges 23 4 27 Other (2) (8) (1) (9) Reserve balances at December 31, 2020 13 1 14 Cash payments (7) (2) (9) Restructuring charges 2 2 4 Other (2) (2) (1) (3) Reserve balances at June 30, 2021 (3) $ 6 $ — $ 6 _____________________ (1) Represents liabilities transferred from ParentCo on April 1, 2020 in connection with the Separation (see Note A ). (2) Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. (3) The remaining reserves are expected to be paid in cash during the remainder of 2021, with the exception of $1 that is expected to be paid in 2022 related to special termination benefits. |
Other Expenses (Income), Net (T
Other Expenses (Income), Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income) Expense, Net | Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Non-service costs — Pension and OPEB ( G ) $ 16 $ 18 $ 36 $ 39 Foreign currency (gains) losses, net (2) (5) — 8 Interest income — (2) — (4) Other, net 1 5 1 (1) $ 15 $ 16 $ 37 $ 42 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost Classified as Direct Plans | The components of net periodic benefit cost for defined benefit plans were as follows: Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Pension benefits Service cost $ 5 $ 5 $ 11 $ 10 Interest cost 16 28 33 54 Expected return on plan assets (27) (45) (60) (85) Recognized net actuarial loss 24 31 56 61 Amortization of prior service cost (benefit) — (1) — (1) Settlements (1) 568 55 568 55 Net periodic benefit cost (2) $ 586 $ 73 $ 608 $ 94 Other postretirement benefits Service cost $ 2 $ 1 $ 3 $ 2 Interest cost 2 4 5 8 Recognized net actuarial loss 3 1 5 3 Amortization of prior service benefit (2) — (3) (1) Net periodic benefit cost (2) $ 5 $ 6 $ 10 $ 12 __________________ (1) In the 2021 second quarter and six-month period, Settlements were due to the purchase of a group annuity contract ($549 – see U.S. Pension Plan Annuitization below) and the payment of lump-sum benefits ($19). (2) Service cost was included within Cost of goods sold, Settlements were included within Restructuring and other charges, and all other components were included in Other expenses, net on the accompanying Statement of Consolidated Operations. |
Income Taxes_ (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provisions | The following table details the components of Benefit for income taxes: Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Pretax ordinary loss at estimated annual effective tax rate $ (100) $ (135) $ (87) $ (58) Impact of change in estimated annual effective tax rate on previous quarter’s pretax income (6) 55 — — Interim period treatment of operational losses in foreign jurisdictions for which no tax benefit is recognized* (2) 48 (2) 49 Discrete items — — (3) 4 Benefit for income taxes $ (108) $ (32) $ (92) $ (5) __________________ * The interim period impact related to operational losses in foreign jurisdictions for which no tax benefit is recognized will reverse by the end of the calendar year. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The share information used to compute basic and diluted EPS attributable to Arconic Corporation common stockholders was as follows (shares in millions): Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Weighted-average shares outstanding – basic 110.0 109.0 109.9 109.0 Dilutive share equivalents: Stock units — — — — Stock options — — — — Weighted-average shares outstanding – diluted 110.0 109.0 109.9 109.0 Anti-dilutive share equivalents: Stock units 3.2 2.6 3.3 1.3 Stock options*: In-the-money 0.2 — 0.1 — Out-of-the-money — — — — 3.4 2.6 3.4 1.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table details the activity of the three components that comprise Accumulated other comprehensive (loss) income for Arconic (such activity for Noncontrolling interest was immaterial for all periods presented): Second quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 Pension and other postretirement benefits ( G ) Balance at beginning of period $ (1,766) $ (1,770) $ (1,791) $ (43) Establishment of additional defined benefit plans — — — (1,752) Separation-related adjustments ( A ) — (50) — (50) Other comprehensive income: Unrecognized net actuarial loss and prior service cost/benefit 145 (40) 144 (38) Tax (expense) benefit (33) 10 (33) 9 Total Other comprehensive income (loss) before reclassifications, net of tax 112 (30) 111 (29) Amortization of net actuarial loss and prior service cost/benefit (1) 593 86 626 117 Tax expense (2) (138) (20) (145) (27) Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 455 66 481 90 Total Other comprehensive income 567 36 592 61 Balance at end of period $ (1,199) $ (1,784) $ (1,199) $ (1,784) Foreign currency translation Balance at beginning of period $ 22 $ 338 $ 29 $ 338 Separation-related adjustments ( A ) — (396) — (396) Other comprehensive income: Foreign currency translation (3) 13 5 6 (17) Net amount reclassified to earnings from Accumulated other comprehensive income (3),(5) — — — 22 Total Other comprehensive income 13 5 6 5 Balance at end of period $ 35 $ (53) $ 35 $ (53) Cash flow hedges Balance at beginning of period $ (21) $ — $ 1 $ — Separation-related adjustments ( A ) — (4) — (4) Other comprehensive loss: Net change from periodic revaluations (59) 2 (94) 2 Tax benefit 14 — 22 — Total Other comprehensive (loss) income before reclassifications, net of tax (45) 2 (72) 2 Net amount reclassified to earnings (4) 40 (11) 47 (11) Tax (expense) benefit (2) (9) 2 (11) 2 Total amount reclassified from Accumulated other comprehensive income (loss), net of tax (5) 31 (9) 36 (9) Total Other comprehensive loss (14) (7) (36) (7) Balance at end of period $ (35) $ (11) $ (35) $ (11) Accumulated other comprehensive loss $ (1,199) $ (1,848) $ (1,199) $ (1,848) _____________________ (1) These amounts were included in the non-service component of net periodic benefit cost for pension and other postretirement benefits (see Note G ). In all periods presented, the respective amounts include accelerated amortization related to the settlement of certain employee retirement benefits. The accelerated amortization was $568 for the second quarter ended and six months ended June 30, 2021 and $55 for the second quarter ended and six months ended June 30, 2020 (see Note G ). (2) These amounts were reported in Benefit for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes. In the 2020 six-month period, the net amount reclassified to earnings was reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations related to the sale of certain foreign subsidiaries. (4) These amounts relate to aluminum contracts, a portion of which were reported in both Sales and Cost of goods sold on the accompanying Statement of Consolidated Operations. (5) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 4. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | ||
Schedule of Inventories | June 30, 2021 December 31, 2020 Finished goods $ 363 $ 282 Work-in-process 889 635 Purchased raw materials 77 59 Operating supplies 68 67 $ 1,397 $ 1,043 | |
Accounting Standards Update and Change in Accounting Principle | Additionally, certain financial statement line items in each of the accompanying Statement of Consolidated Operations, Statement of Consolidated Comprehensive Income, and Statement of Consolidated Cash Flows for the 2020 second quarter and six-month period were recast as follows: As Previously Reported Effect of Change As Recast Statement of Consolidated Operations for the second quarter ended June 30, 2020: Cost of goods sold $ 1,046 $ 5 $ 1,051 Operating loss (67) (5) (72) Loss before income taxes (123) (5) (128) Benefit for income taxes (31) (1) (32) Net loss (92) (4) (96) Net loss attributable to Arconic Corporation (92) (4) (96) Earnings per share attributable to Arconic Corporation common stockholders: Basic $ (0.84) $ (0.04) $ (0.88) Diluted (0.84) (0.04) (0.88) Statement of Consolidated Operations for the six months ended June 30, 2020: Cost of goods sold $ 2,373 $ 23 $ 2,396 Operating income 85 (23) 62 Loss before income taxes (32) (23) (55) Benefit for income taxes — (5) (5) Net loss (32) (18) (50) Net loss attributable to Arconic Corporation (32) (18) (50) Earnings per share attributable to Arconic Corporation common shareholders: Basic $ (0.29) $ (0.17) $ (0.46) Diluted (0.29) (0.17) (0.46) As Previously Reported Effect of Change As Recast Statement of Consolidated Comprehensive Loss for the second quarter ended June 30, 2020: Comprehensive loss $ (58) $ (4) $ (62) Comprehensive loss attributable to Arconic Corporation (58) (4) (62) Statement of Consolidated Comprehensive Income for the six months ended June 30, 2020: Comprehensive income $ 27 $ (18) $ 9 Comprehensive income attributable to Arconic Corporation 27 (18) 9 Statement of Consolidated Cash Flows for the six months ended June 30, 2020: Net loss $ (32) $ (18) $ (50) Deferred income taxes 55 (5) 50 Decrease in inventories 92 23 115 |
Leases_ (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Maturity | Future minimum contractual operating lease obligations were as follows: June 30, 2021 December 31, 2020 2021 $ 23 $ 43 2022 37 34 2023 29 26 2024 22 20 2025 17 16 Thereafter 41 41 Total lease payments $ 169 $ 180 Less: imputed interest 30 33 Present value of lease liabilities $ 139 $ 147 |
The Separation and Basis of P_3
The Separation and Basis of Presentation - Narrative (Details) $ / shares in Units, $ in Millions | Apr. 01, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Feb. 05, 2020 | Jan. 02, 2020USD ($) | Feb. 08, 2019company |
Related Party Transaction [Line Items] | |||||||||
Number of publicly traded companies | company | 2 | ||||||||
Increase (Decrease) in accounts payable, trade | $ 323 | $ (334) | |||||||
Capital expenditures | (72) | (87) | |||||||
Separation transaction, share conversion ratio | 0.25 | ||||||||
Payments for Separation Transaction | $ 728 | 728 | |||||||
Separation transaction, shares issued to parent | shares | 109,021,376 | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||
Separation transaction, costs incurred | 18 | ||||||||
Receivables from customers | $ 828 | $ 631 | $ 281 | ||||||
Accounts payable, settlement arrangements | $ 1 | ||||||||
ParentCo | Sale of customer receivables | |||||||||
Related Party Transaction [Line Items] | |||||||||
Transaction with related party, amount | $ 281 | ||||||||
ParentCo | |||||||||
Related Party Transaction [Line Items] | |||||||||
Common stock, outstanding (in shares) | shares | 436,085,504 | ||||||||
Separation transaction, costs incurred | 38 | ||||||||
As Previously Reported | |||||||||
Related Party Transaction [Line Items] | |||||||||
Increase (Decrease) in accounts payable, trade | $ 35 | 43 | |||||||
Capital expenditures | $ (35) | $ (43) |
The Separation and Basis of P_4
The Separation and Basis of Presentation - Cost Allocations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Cost of goods sold | $ 1,567 | $ 1,051 | $ 2,998 | $ 2,396 |
Selling, general administrative, and other expenses | 61 | 55 | 120 | 135 |
Research and development expenses | 9 | 8 | 17 | 19 |
Provision for depreciation and amortization | 62 | 68 | 125 | 128 |
Restructuring and other charges (E) | 597 | 77 | 598 | 58 |
Interest expense | 25 | 40 | 48 | 75 |
Other expenses, net | $ 15 | $ 16 | $ 37 | 42 |
Separation transaction, costs incurred | 18 | |||
Spin-off | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost of goods sold | 0 | |||
Selling, general administrative, and other expenses | 25 | |||
Research and development expenses | 0 | |||
Provision for depreciation and amortization | 1 | |||
Restructuring and other charges (E) | 2 | |||
Interest expense | 28 | |||
Other expenses, net | $ (5) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,801 | $ 1,187 | $ 3,476 | $ 2,798 |
External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,801 | 1,191 | 3,476 | 2,802 |
Ground Transportation | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 634 | 257 | 1,296 | 786 |
Building and Construction | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 308 | 263 | 595 | 554 |
Aerospace | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 151 | 237 | 289 | 537 |
Industrial Products and Other | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 432 | 239 | 801 | 552 |
Packaging | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 276 | 195 | 495 | 373 |
Rolled Products | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,474 | 880 | 2,838 | 2,102 |
Rolled Products | Ground Transportation | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 610 | 250 | 1,247 | 749 |
Rolled Products | Building and Construction | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 51 | 33 | 102 | 68 |
Rolled Products | Aerospace | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 124 | 173 | 233 | 398 |
Rolled Products | Industrial Products and Other | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 413 | 229 | 761 | 514 |
Rolled Products | Packaging | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 276 | 195 | 495 | 373 |
Building and Construction Systems | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 257 | 230 | 493 | 486 |
Building and Construction Systems | Ground Transportation | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Building and Construction Systems | Building and Construction | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 257 | 230 | 493 | 486 |
Building and Construction Systems | Aerospace | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Building and Construction Systems | Industrial Products and Other | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Building and Construction Systems | Packaging | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Extrusions | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 70 | 81 | 145 | 214 |
Extrusions | Ground Transportation | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 24 | 7 | 49 | 37 |
Extrusions | Building and Construction | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Extrusions | Aerospace | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 27 | 64 | 56 | 139 |
Extrusions | Industrial Products and Other | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 19 | 10 | 40 | 38 |
Extrusions | Packaging | External Sales Including Reconciling Items [Domain] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Segment and Related Informati_3
Segment and Related Information - Operating Results (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | $ 1,801 | $ 1,187 | $ 3,476 | $ 2,798 |
Segment Adjusted EBITDA | 200 | 108 | 389 | 311 |
Provision for depreciation and amortization | 62 | 68 | 125 | 128 |
Restructuring and other charges (E) | 597 | 77 | 598 | 58 |
Intersegment sales | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 10 | 4 | 17 | 11 |
Intersegment sales | Rolled Products | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 10 | 4 | 17 | 11 |
Intersegment sales | Building and Construction Systems | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 0 | 0 | 0 | 0 |
Intersegment sales | Extrusions | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 0 | 0 | 0 | 0 |
Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 1,811 | 1,195 | 3,493 | 2,813 |
Segment Adjusted EBITDA | 200 | 108 | 389 | 311 |
Provision for depreciation and amortization | 59 | 64 | 117 | 120 |
Restructuring and other charges (E) | 2 | 15 | 3 | (6) |
Operating segments | Rolled Products | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 1,484 | 884 | 2,855 | 2,113 |
Segment Adjusted EBITDA | 173 | 85 | 338 | 250 |
Provision for depreciation and amortization | 49 | 53 | 97 | 99 |
Restructuring and other charges (E) | 0 | 7 | (1) | 16 |
Operating segments | Building and Construction Systems | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 257 | 230 | 493 | 486 |
Segment Adjusted EBITDA | 35 | 37 | 63 | 67 |
Provision for depreciation and amortization | 5 | 5 | 9 | 9 |
Restructuring and other charges (E) | 0 | 5 | (1) | 6 |
Operating segments | Extrusions | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 70 | 81 | 145 | 214 |
Segment Adjusted EBITDA | 8 | 14 | 12 | 6 |
Provision for depreciation and amortization | 5 | 6 | 11 | 12 |
Restructuring and other charges (E) | 2 | (3) | 3 | 28 |
Third-party sales | External Sales Including Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 1,801 | 1,191 | 3,476 | 2,802 |
Third-party sales | External Sales Including Reconciling Items | Rolled Products | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 1,474 | 880 | 2,838 | 2,102 |
Third-party sales | External Sales Including Reconciling Items | Building and Construction Systems | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | 257 | 230 | 493 | 486 |
Third-party sales | External Sales Including Reconciling Items | Extrusions | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total sales | $ 70 | $ 81 | $ 145 | $ 214 |
Segment and Related Informati_4
Segment and Related Information - Segment Operating Profit (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | $ 200 | $ 108 | $ 389 | $ 311 |
Corporate expenses(1) | (10) | (7) | (19) | (9) |
Stock-based compensation expense | (5) | (5) | (7) | (12) |
Metal Price Lag | (11) | (10) | (6) | (14) |
Provision for depreciation and amortization | (62) | (68) | (125) | (128) |
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | (597) | (77) | (598) | (58) |
Other | (10) | (13) | (16) | (28) |
Operating (loss) income | (495) | (72) | (382) | 62 |
Interest expense | (25) | (40) | (48) | (75) |
Other expenses, net | (15) | (16) | (37) | (42) |
Benefit for income taxes | 108 | 32 | 92 | 5 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | (427) | (96) | (375) | (50) |
Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | 200 | 108 | 389 | 311 |
Provision for depreciation and amortization | (59) | (64) | (117) | (120) |
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | (2) | (15) | (3) | 6 |
Operating segments | Rolled Products | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | 173 | 85 | 338 | 250 |
Provision for depreciation and amortization | (49) | (53) | (97) | (99) |
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | 0 | (7) | 1 | (16) |
Operating segments | Building and Construction Systems | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | 35 | 37 | 63 | 67 |
Provision for depreciation and amortization | (5) | (5) | (9) | (9) |
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | 0 | (5) | 1 | (6) |
Operating segments | Extrusions | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | 8 | 14 | 12 | 6 |
Provision for depreciation and amortization | (5) | (6) | (11) | (12) |
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | $ (2) | $ 3 | $ (3) | $ (28) |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($)employee | Mar. 31, 2021employee | Jun. 30, 2020USD ($)employee | Jun. 30, 2021USD ($)employee | Jun. 30, 2020USD ($)employee | Dec. 31, 2021USD ($) | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ 597 | $ 77 | $ 598 | $ 58 | |||
Cash payments, restructuring | 9 | $ 27 | |||||
Other miscellaneous costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash payments, restructuring | 2 | 3 | |||||
Layoff costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash payments, restructuring | 7 | $ 24 | |||||
One-time Termination Benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 568 | $ 568 | |||||
Spin-off | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 2 | ||||||
2019 Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees separated | employee | 360 | ||||||
Expected number of employees separated | employee | 370 | ||||||
2019 Restructuring Program [Member] | Layoff costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash payments, restructuring | 1 | $ 2 | |||||
2020 Restructuring Programs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ 77 | $ 58 | |||||
Number of employees separated | employee | 465 | ||||||
Expected number of employees separated | employee | 520 | 430 | 500 | ||||
Restructuring and Related Cost, Change in Expected Positions Eliminated | employee | 120 | ||||||
2020 Restructuring Programs | Building and Construction System and Extrustions [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected number of employees separated | employee | 140 | 140 | |||||
2020 Restructuring Programs | COVID-19 | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected number of employees separated | employee | 410 | 410 | |||||
2020 Restructuring Programs | Disposals | Hard Alloy Extrusions Plant In South Korea And Aluminum Rolling Mill In Brazil | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ (25) | ||||||
2020 Restructuring Programs | Reversal of Reserve [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ (12) | $ 2 | (12) | ||||
2020 Restructuring Programs | Reversal of Reserve [Member] | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ 7 | ||||||
2020 Restructuring Programs | Other miscellaneous costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 2 | 6 | |||||
2020 Restructuring Programs | Layoff costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash payments, restructuring | 1 | $ 4 | |||||
2020 Restructuring Programs | Layoff costs | Building and Construction System and Extrustions [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 8 | 8 | |||||
2020 Restructuring Programs | Layoff costs | COVID-19 | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 17 | 17 | |||||
2020 Restructuring Programs | One-time Termination Benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 55 | 55 | |||||
2020 Restructuring Programs | Reversal Of Reserve, Environmental Matter | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | (5) | (5) | |||||
2020 Restructuring Programs | Facility Closing | Building and Construction System and Extrustions [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 11 | 11 | |||||
2020 Restructuring Programs | Legacy Non-Income Tax Matters | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ 4 | 4 | |||||
2020 Restructuring Programs | Spin-off | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ 2 | ||||||
2021 Restructuring Programs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ 597 | ||||||
Number of employees separated | employee | 35 | ||||||
Expected number of employees separated | employee | 115 | ||||||
2021 Restructuring Programs | Extrusions | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employees separated | employee | 115 | 115 | |||||
2021 Restructuring Programs | Disposals | Aluminum Rolling Mill in Itapissuma, Brazil | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ 1 | ||||||
2021 Restructuring Programs | Reversal of Reserve [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ 1 | 2 | |||||
2021 Restructuring Programs | Other miscellaneous costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 3 | 4 | |||||
2021 Restructuring Programs | Layoff costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash payments, restructuring | 1 | 1 | |||||
2021 Restructuring Programs | One-time Termination Benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 568 | 568 | |||||
2021 Restructuring Programs | Facility Closing | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | 34 | 34 | |||||
2021 Restructuring Programs | Legacy Tax Matters | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (E) | $ 7 | $ 7 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Restructuring and Other Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (E) | $ 597 | $ 77 | $ 598 | $ 58 |
Operating segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (E) | 2 | 15 | 3 | (6) |
Operating segments | Rolled Products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (E) | 0 | 7 | (1) | 16 |
Operating segments | Building and Construction Systems | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (E) | 0 | 5 | (1) | 6 |
Operating segments | Extrusions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (E) | 2 | (3) | 3 | 28 |
Corporate, Non-Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges (E) | $ 595 | $ 62 | $ 595 | $ 64 |
Restructuring and Other Charg_5
Restructuring and Other Charges - Restructuring Reserve (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022USD ($) | Jun. 30, 2021USD ($)employee | Mar. 31, 2021USD ($)employee | Jun. 30, 2020USD ($)employee | Jun. 30, 2021USD ($)employee | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | $ 14 | $ 14 | $ 21 | ||||
Restructuring Reserve, Accrual Adjustment | $ 2 | ||||||
Cash payments | (9) | (27) | |||||
Restructuring charges | 4 | 27 | |||||
Other | (3) | (9) | |||||
Ending balance | $ 6 | 6 | 21 | ||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | (597) | $ (77) | $ (598) | (58) | |||
2020 Restructuring Programs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | $ (77) | (58) | |||||
Number of employees separated | employee | 465 | ||||||
Expected number of employees separated | employee | 520 | 430 | 500 | ||||
2019 Restructuring Program [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Number of employees separated | employee | 360 | ||||||
Expected number of employees separated | employee | 370 | ||||||
2021 Restructuring Programs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | $ (597) | ||||||
Number of employees separated | employee | 35 | ||||||
Expected number of employees separated | employee | 115 | ||||||
Extrusions | 2021 Restructuring Programs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Number of employees separated | employee | 115 | 115 | |||||
Operating segments | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | $ (2) | $ (15) | $ (3) | 6 | |||
Operating segments | Rolled Products | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | 0 | (7) | 1 | (16) | |||
Operating segments | Building and Construction Systems | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | 0 | (5) | 1 | (6) | |||
Operating segments | Extrusions | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | (2) | 3 | (3) | (28) | |||
Corporate, Non-Segment | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | (595) | (62) | (595) | (64) | |||
Layoff costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | $ 13 | 13 | 20 | ||||
Restructuring Reserve, Accrual Adjustment | 2 | ||||||
Cash payments | (7) | (24) | |||||
Restructuring charges | 2 | 23 | |||||
Other | (2) | (8) | |||||
Ending balance | 6 | 6 | 20 | ||||
Layoff costs | 2020 Restructuring Programs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Cash payments | (1) | (4) | |||||
Layoff costs | 2019 Restructuring Program [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Cash payments | (1) | (2) | |||||
Layoff costs | 2021 Restructuring Programs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Cash payments | (1) | (1) | |||||
Other costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | $ 1 | 1 | 1 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||||
Cash payments | (2) | (3) | |||||
Restructuring charges | 2 | 4 | |||||
Other | (1) | (1) | |||||
Ending balance | 0 | 0 | $ 1 | ||||
Other costs | 2020 Restructuring Programs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | $ (2) | $ (6) | |||||
Other costs | 2021 Restructuring Programs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring, Settlement And Impairment Provisions, Including Gain (Loss) On Disposition Of Assets And Business | $ (3) | $ (4) | |||||
Special Termination Benefits | Forecast | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Cash payments | $ (1) |
Other Expenses (Income), Net (D
Other Expenses (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Non-service costs — Pension and OPEB | $ 16 | $ 18 | $ 36 | $ 39 |
Foreign currency (gains) losses, net | (2) | (5) | 0 | 8 |
Interest income | 0 | (2) | 0 | (4) |
Other, net | 1 | 5 | 1 | (1) |
Nonoperating Income (Expense) | $ 15 | $ 16 | $ 37 | $ 42 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pension benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 5 | $ 5 | $ 11 | $ 10 |
Interest cost | 16 | 28 | 33 | 54 |
Expected return on plan assets | (27) | (45) | (60) | (85) |
Recognized net actuarial loss | 24 | 31 | 56 | 61 |
Amortization of prior service benefit | 0 | (1) | 0 | (1) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 568 | 55 | 568 | 55 |
Net periodic benefit cost | 586 | 73 | 608 | 94 |
Other postretirement benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 2 | 1 | 3 | 2 |
Interest cost | 2 | 4 | 5 | 8 |
Recognized net actuarial loss | 3 | 1 | 5 | 3 |
Amortization of prior service benefit | (2) | 0 | (3) | (1) |
Net periodic benefit cost | $ 5 | $ 6 | $ 10 | $ 12 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2021USD ($)participantplan | Jan. 31, 2021USD ($)plan | Jun. 30, 2021USD ($) | Mar. 31, 2021planparticipant | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Payment for Pension Benefits | $ 453,000,000 | $ 44,000,000 | ||||||
Accrued pension benefits | $ 737,000,000 | 737,000,000 | $ 1,343,000,000 | |||||
Pension benefits | UNITED STATES | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined Benefit Plan, Number Of Pension Plans | plan | 2 | 2 | ||||||
Defined Benefit Plan, Number Of Participants | participant | 8,400 | 23,000 | ||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 995,000,000 | |||||||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | 1,007,000,000 | 549,000,000 | ||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), after Tax | (423,000,000) | |||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 250,000,000 | |||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.10% | 2.54% | ||||||
Retirement plans, benefit obligation | $ 3,337,000,000 | |||||||
Retirement plans, plan assets | 2,790,000,000 | |||||||
Accumulated Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Tax | 117,000,000 | |||||||
Accrued pension benefits | 152,000,000 | |||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | 549,000,000 | 568,000,000 | $ 55,000,000 | |||||
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 19,000,000 | |||||||
Defined Benefit Plan, Funded Plan | Pension benefits | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined Benefit Plan, Minimum Required Employer Contributions, Next Fiscal Year | 192,000,000 | 192,000,000 | ||||||
Defined Benefit Plan, Funded Plan | Pension benefits | UNITED STATES | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined Benefit Plan, Minimum Required Employer Contributions, Next Fiscal Year | $ 183,000,000 | $ 183,000,000 | ||||||
Payment for Pension Benefits | $ 250 | $ 200,000,000 | ||||||
Defined Benefit Plan, Number Of Pension Plans | plan | 2 | |||||||
Defined Benefit Plan, Employer Contribution, Additional Contribution Above Minimum Requirement | $ 17,000,000 | |||||||
Defined Benefit Plan, Funded Plan | Pension benefits | UNITED STATES | Forecast | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined Benefit Plan, Minimum Required Employer Contributions, Next Fiscal Year | $ 183,000,000 |
Income Taxes_ (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)points | Jun. 30, 2020USD ($)points | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate, before discrete items | 18.60% | 105.50% | ||
Effective Income Tax Rate Reconciliation, Percentage Points | points | 2.4 | 84.5 | ||
Effective income tax rate, including discrete items | 20.20% | 25.00% | 19.70% | 9.10% |
Income Tax Expense (Benefit) | ||||
Pretax ordinary loss at estimated annual effective tax rate | $ (100) | $ (135) | $ (87) | $ (58) |
Effective Income Tax Reconciliation Change In Estimate From Prior Period Amount | (6) | 55 | 0 | 0 |
Interim period treatment of operational losses in foreign jurisdictions for which no tax benefit is recognized* | $ (2) | $ 48 | $ (2) | $ 49 |
Discrete items | 0 | 0 | (3) | 4 |
Benefit for income taxes | $ (108) | $ (32) | $ (92) | $ (5) |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 01, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Weighted-average shares outstanding – basic | 110,000,000 | 109,000,000 | 109,900,000 | 109,000,000 | |
Weighted-average shares outstanding – diluted | 110,000,000 | 109,000,000 | 109,900,000 | 109,000,000 | |
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $ 3,400,000 | $ 2,600,000 | $ 3,400,000 | $ 1,300,000 | |
Separation transaction, shares issued to parent | 109,021,376 | ||||
Share-based Payment Arrangement, Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 0 | |
Stock Units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 0 | |
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $ 3,200,000 | $ 2,600,000 | $ 3,300,000 | $ 1,300,000 | |
Exercise Price Range, Greater Than Average Market Price | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 1,100,000 | 1,100,000 | |||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 26.05 | $ 26.05 | |||
In-the-money Stock Options | Share-based Payment Arrangement, Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | 200,000 | 0 | 100,000 | 0 | |
Out-of-the-money Stock Options | Share-based Payment Arrangement, Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $ 0 | $ 0 | $ 0 | $ 0 |
Preferred and Common Stock (Det
Preferred and Common Stock (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | May 07, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||||
Stock Repurchase Program, Authorized Amount | $ 300 | ||||
Stock Repurchase Program, Period in Force | 2 years | ||||
Treasury Stock, Shares | 246,011 | 246,011 | 246,011 | ||
Treasury stock (J) | $ 9 | $ 9 | $ 9 | $ 0 | |
Treasury Stock, Value, Acquired, Cost Method | $ (9) | $ (9) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent [Abstract] | ||||
Balance at beginning of period | $ 1,490 | $ 1,857 | $ 1,447 | $ 2,973 |
Other comprehensive income: | ||||
Total Other comprehensive income, net of tax | 566 | 34 | 562 | 59 |
Balance at end of period | 1,628 | 1,389 | 1,628 | 1,389 |
UNITED STATES | Pension benefits | ||||
Other comprehensive income: | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | 549 | 568 | 55 | |
Pension and other postretirement benefits | ||||
AOCI Attributable to Parent [Abstract] | ||||
Balance at beginning of period | (1,766) | (1,770) | (1,791) | (43) |
Other comprehensive income: | ||||
Separation-related adjustments (A) | 0 | 50 | 0 | 50 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax | 0 | 0 | 0 | (1,752) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 145 | (40) | 144 | (38) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (33) | 10 | (33) | 9 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 112 | (30) | 111 | (29) |
Amortization of net actuarial loss and prior service cost | 593 | 86 | 626 | 117 |
Tax expense | (138) | (20) | (145) | (27) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 455 | 66 | 481 | 90 |
Total Other comprehensive income, net of tax | 567 | 36 | 592 | 61 |
Balance at end of period | (1,199) | (1,784) | (1,199) | (1,784) |
Foreign currency translation | ||||
AOCI Attributable to Parent [Abstract] | ||||
Balance at beginning of period | 22 | 338 | 29 | 338 |
Other comprehensive income: | ||||
Separation-related adjustments (A) | 0 | 396 | 0 | 396 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 13 | 5 | 6 | (17) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 22 |
Total Other comprehensive income, net of tax | 13 | 5 | 6 | 5 |
Balance at end of period | 35 | (53) | 35 | (53) |
Cash flow hedges | ||||
AOCI Attributable to Parent [Abstract] | ||||
Balance at beginning of period | (21) | 0 | 1 | 0 |
Other comprehensive income: | ||||
Separation-related adjustments (A) | 0 | 4 | 0 | 4 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (59) | 2 | (94) | 2 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 14 | 0 | 22 | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (45) | 2 | (72) | 2 |
Amortization of net actuarial loss and prior service cost | 40 | (11) | 47 | (11) |
Tax expense | (9) | 2 | (11) | 2 |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 31 | (9) | 36 | (9) |
Total Other comprehensive income, net of tax | (14) | (7) | (36) | (7) |
Balance at end of period | (35) | (11) | (35) | (11) |
Accumulated other comprehensive (loss) income | ||||
AOCI Attributable to Parent [Abstract] | ||||
Balance at beginning of period | (1,765) | (1,432) | (1,761) | 295 |
Other comprehensive income: | ||||
Total Other comprehensive income, net of tax | 566 | 34 | 562 | 59 |
Balance at end of period | $ (1,199) | $ (1,848) | $ (1,199) | $ (1,848) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 363 | $ 282 |
Work-in-process | 889 | 635 |
Purchased raw materials | 77 | 59 |
Operating supplies | 68 | 67 |
Inventories | $ 1,397 | $ 1,043 |
Inventories - Effects of Change
Inventories - Effects of Change in Accounting Principle (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jan. 01, 2020 | |
Inventory [Line Items] | |||||
Cost of goods sold (exclusive of expenses below) | $ 1,567 | $ 1,051 | $ 2,998 | $ 2,396 | |
Operating (loss) income | (495) | (72) | (382) | 62 | |
Loss before income taxes | (535) | (128) | (467) | (55) | |
Benefit for income taxes | (108) | (32) | (92) | (5) | |
Net loss | (427) | (96) | (375) | (50) | |
Net Income (Loss) Attributable to Parent | $ (427) | $ (96) | $ (375) | $ (50) | |
Basic | $ (3.89) | $ (0.88) | $ (3.41) | $ (0.46) | |
Diluted | $ (3.89) | $ (0.88) | $ (3.41) | $ (0.46) | |
Comprehensive loss | $ 139 | $ (62) | $ 187 | $ 9 | |
Comprehensive loss attributable to Arconic Corporation | (62) | 9 | |||
Deferred income taxes | (113) | 50 | |||
(Increase) Decrease in inventories | $ (357) | 115 | |||
As Previously Reported | |||||
Inventory [Line Items] | |||||
Cost of goods sold (exclusive of expenses below) | 1,046 | 2,373 | |||
Operating (loss) income | (67) | 85 | |||
Loss before income taxes | (123) | (32) | |||
Benefit for income taxes | (31) | 0 | |||
Net loss | (92) | (32) | |||
Net Income (Loss) Attributable to Parent | $ (92) | $ (32) | |||
Basic | $ (0.84) | $ (0.29) | |||
Diluted | $ (0.84) | $ (0.29) | |||
Comprehensive loss | $ (58) | $ 27 | |||
Comprehensive loss attributable to Arconic Corporation | (58) | 27 | |||
Deferred income taxes | 55 | ||||
(Increase) Decrease in inventories | 92 | ||||
Effect of Change | |||||
Inventory [Line Items] | |||||
Cost of goods sold (exclusive of expenses below) | 5 | 23 | |||
Operating (loss) income | (5) | (23) | |||
Loss before income taxes | (5) | (23) | |||
Benefit for income taxes | (1) | (5) | |||
Net loss | (4) | (18) | |||
Net Income (Loss) Attributable to Parent | $ (4) | $ (18) | |||
Basic | $ (0.04) | $ (0.17) | |||
Diluted | $ (0.04) | $ (0.17) | |||
Comprehensive loss | $ (4) | $ (18) | |||
Comprehensive loss attributable to Arconic Corporation | $ (4) | (18) | |||
Deferred income taxes | (5) | ||||
(Increase) Decrease in inventories | $ 23 | ||||
Parent Company Net Investment | $ 245 |
Leases_ (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Leases [Abstract] | |||||
Lease cost | $ 14 | $ 14 | $ 30 | $ 29 | |
Right-of-use asset obtained in exchange for operating lease liability | 10 | $ 32 | |||
Operating Lease Obligation | |||||
2021 | 23 | 23 | $ 43 | ||
2022 | 37 | 37 | 34 | ||
2023 | 29 | 29 | 26 | ||
2024 | 22 | 22 | 20 | ||
2025 | 17 | 17 | 16 | ||
Thereafter | 41 | 41 | 41 | ||
Total lease payments | 169 | 169 | 180 | ||
Less: imputed interest | 30 | 30 | 33 | ||
Present value of lease liabilities | $ 139 | $ 139 | $ 147 | ||
Weighted-average remaining lease term | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 7 months 6 days | ||
Weighted-average discount rate | 5.80% | 5.80% | 5.90% |
Debt (Details)
Debt (Details) - USD ($) | Mar. 03, 2021 | May 13, 2020 | Apr. 02, 2020 | Mar. 25, 2020 | Feb. 07, 2020 | Feb. 05, 2020 | Mar. 25, 2020 | May 13, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Apr. 01, 2020 |
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,200,000,000 | |||||||||||
Proceeds from debt issuance | $ 1,168,000,000 | $ 319,000,000 | $ 2,400,000,000 | |||||||||
Cash | 60,000,000 | $ 500,000,000 | ||||||||||
Repayments of Long-term Debt | 0 | $ 1,100,000,000 | ||||||||||
Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed interest rate | 6.125% | |||||||||||
Senior Secured Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Unamortized Premium | $ 19,000,000 | |||||||||||
Unamortized Debt Issuance Expense | 5,000,000 | |||||||||||
Second-Lien Notes due 2028, 6.125% | Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 300,000,000 | $ 600,000,000 | ||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 106.25% | |||||||||||
Proceeds from debt issuance | $ 593,000,000 | |||||||||||
Debt, carrying value | 1,593,000,000 | $ 1,278,000,000 | ||||||||||
Debt, fair value | 1,714,000,000 | 1,399,000,000 | ||||||||||
Second-Lien Notes due 2028, 6.125% | Senior Secured Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from debt issuance | $ 315,000,000 | |||||||||||
First-Lien Term B Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Issuance Costs, Net | $ 30,000,000 | $ 30,000,000 | 14,000,000 | |||||||||
Write off of Deferred Debt Issuance Cost | 16,000,000 | $ 19,000,000 | ||||||||||
First-Lien Term B Loan Facility | Senior Secured Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | 600,000,000 | 600,000,000 | ||||||||||
Proceeds from debt issuance | $ 575,000,000 | |||||||||||
Debt instrument, term | 7 years | |||||||||||
Repayments of Long-term Debt | $ 600,000,000 | |||||||||||
First-Lien Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Issuance Costs, Net | $ 30,000,000 | 30,000,000 | 14,000,000 | |||||||||
Write off of Deferred Debt Issuance Cost | 16,000,000 | 19,000,000 | ||||||||||
First-Lien Revolving Credit Facility | Senior Secured Credit Facility | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,000 | 1,000 | ||||||||||
Debt instrument, term | 5 years | |||||||||||
Proceeds from revolving credit facility | $ 500,000,000 | |||||||||||
Repayments of Long-term Debt | 500,000,000 | |||||||||||
First-Lien Revolving Credit Facility | Senior Secured Credit Facility | Revolving Credit Facility | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.00% | |||||||||||
First-Lien Notes due 2025, 6.000% | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Issuance Costs, Net | 15,000,000 | 15,000,000 | 12,000,000 | |||||||||
Write off of Deferred Debt Issuance Cost | 3,000,000 | 19,000,000 | ||||||||||
First-Lien Notes due 2025, 6.000% | Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | ||||||||||
Fixed interest rate | 6.00% | 6.00% | ||||||||||
Proceeds from debt issuance | $ 691,000,000 | |||||||||||
Debt, carrying value | 1,593,000,000 | 1,278,000,000 | ||||||||||
Debt, fair value | 1,714,000,000 | $ 1,399,000,000 | ||||||||||
ABL Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Issuance Costs, Net | 15,000,000 | $ 15,000,000 | 12,000,000 | |||||||||
Write off of Deferred Debt Issuance Cost | 3,000,000 | 19,000,000 | ||||||||||
ABL Credit Agreement | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 800,000,000 | 800,000,000 | ||||||||||
Revolving credit facility, additional borrowing capacity, accordion feature | $ 350,000,000 | $ 350,000,000 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 785,000,000 | |||||||||||
First-Lien Revolving Credit Facility and Second-Lien Notes due 2028, 6.125% [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Issuance Costs, Net | $ 42,000,000 | $ 42,000,000 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) $ in Millions | Mar. 01, 2020USD ($)employee | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | May 31, 2020USD ($) | Feb. 28, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Feb. 01, 2020USD ($)employee |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Total sales | $ 1,801 | $ 1,187 | $ 3,476 | $ 2,798 | |||||||
Disposed of by sale | Aluminum Rolling Mill in Itapissuma, Brazil | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Consideration received | $ 46 | ||||||||||
Payments To Settle Working Capital And Other Adjustments Related To Disposal | $ 2 | $ 4 | |||||||||
Gain (loss) on sale | 60 | ||||||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 6 | $ 53 | |||||||||
Proceeds from Divestiture of Businesses | $ 1 | ||||||||||
Total sales | $ 143 | ||||||||||
Number of employees | employee | 500 | ||||||||||
Disposed of by sale | Hard Alloy Extrusions Plant in South Korea | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Consideration received | $ 55 | ||||||||||
Gain (loss) on sale | 31 | ||||||||||
Write-off of goodwill | $ 6 | ||||||||||
Proceeds from Divestiture of Businesses | $ 1 | ||||||||||
Total sales | $ 51 | ||||||||||
Number of employees | employee | 160 |
Contingencies and Commitments_
Contingencies and Commitments (Details) $ in Millions | Dec. 23, 2020claimantdefendant | Jun. 26, 2020claimant | Jun. 12, 2020USD ($)police_officerfirefighterclaimant | Jun. 11, 2020firefighter | Mar. 17, 2020subsidiary | Jun. 06, 2019plaintiff | Sep. 15, 2017executive | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2018request | Jun. 30, 2021USD ($)police_officerclaimantfirefighter | Jun. 30, 2020USD ($) | Jun. 30, 2018request | Feb. 23, 2021firefighter | Feb. 23, 2021firefighter | Dec. 31, 2020USD ($) |
Site Contingency [Line Items] | |||||||||||||||||||
Environmental remediation | $ | $ 135 | $ 156 | $ 135 | $ 135 | $ 156 | ||||||||||||||
Environmental remediation, current | $ | 75 | 90 | 75 | 75 | $ 90 | ||||||||||||||
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | $ | 1 | ||||||||||||||||||
Environmental remediation, payments | $ | 4 | 21 | |||||||||||||||||
Accrual for Environmental Loss Contingencies, Increase (Decrease) for Other Items | $ | 1 | ||||||||||||||||||
Restructuring and other charges (E) | $ | 597 | $ 77 | $ 598 | $ 58 | |||||||||||||||
Revenue | Geographic Concentration Risk | RUSSIAN FEDERATION | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Concentration risk, percentage | 12.00% | ||||||||||||||||||
Disposed of by sale | Aluminum Rolling Mill in Itapissuma, Brazil | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Payments To Settle Working Capital And Other Adjustments Related To Disposal | $ | 2 | 4 | |||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Birnberg Peirce Ltd | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 118 | 4 | 113 | ||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Howe & Co Solicitors | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 2 | ||||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Russell-Cooke LLP | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 24 | 3 | 34 | ||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Loss Contingency, Number of Defendants | defendant | 23 | ||||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Deighton Pierce Glynn | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 7 | ||||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By SMQ Legal Services | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 5 | ||||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Scott Moncrieff | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 4 | ||||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Saunders Law | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 6 | 31 | |||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Imran Khan And Partners | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 40 | 47 | |||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Howe And Co | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 67 | 61 | |||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Hodge Jones And Allen Solicitor | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 114 | ||||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Hickman And Rose | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 19 | 23 | |||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Duncan Lewis Solicitors | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 5 | ||||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Bindmans LLP | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 341 | ||||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Bhatt Murphy Ltd | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 82 | 76 | |||||||||||||||||
Grenfell Tower Fire, Emergency Responders, Represented By Thompsons Solicitors | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | firefighter | 80 | 98 | |||||||||||||||||
Loss Contingency, Number Of Additional Plaintiffs | firefighter | 7 | 5 | |||||||||||||||||
Grenfell Tower Fire, Emergency Responders, Represented By Penningtons Manches Cooper LLP | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | police_officer | 27 | 36 | |||||||||||||||||
Grenfell Tower Fire, Emergency Responders, Represented By Pattinson And Brewer | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | firefighter | 2 | ||||||||||||||||||
Loss, Contingency, Number Of Plaintiffs Withdrawn | firefighter | 1 | ||||||||||||||||||
Behrens v. Arconic | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | plaintiff | 247 | ||||||||||||||||||
Sullivan v. Arconic | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of former executives | executive | 3 | ||||||||||||||||||
Airbus Matters | Damages from Product Defects | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Loss Contingency, New Claims Filed, Number | request | 3 | 3 | |||||||||||||||||
Loss Contingency, Damages Sought, Value | $ | $ 200 | ||||||||||||||||||
Federal Antimonopoly Services Of The Russian Federation Litigation | Unfavorable Regulatory Action | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Loss Contingency, Number Of Subsidiaries | subsidiary | 2 | ||||||||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Slater & Gordon | Damage from Fire, Explosion or Other Hazard | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Number of plaintiffs | 27 | ||||||||||||||||||
Massena West, NY | |||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||
Environmental remediation | $ | $ 97 | $ 115 | $ 97 | $ 97 | $ 115 | ||||||||||||||
Environmental remediation, additions | $ | $ (25) |